Transcript
Submitted By:Aparna Vyas Barun Kumar Jayshree Bharti Manoj Dubey Rajesh Kumar Saurabh Mehta Manoj Dubey Veeresh Tripathi
GLOBAL BIOTECHNOLOGY INDUSTRY Discovery of Recombinant DNA technology in 1973. Application Application in Agriculture, Industry Industry,, Medicine It is estimated that by 2025, BIO-DRUGS would replace 70% of conventional Therapies. Therapies. The global biotech industry was $84.6 billion in 2010 and is expected to grow at a 7% CAGR to $103 billion by 2013.
GLOBAL BIOTECHNOLOGY INDUSTRY Discovery of Recombinant DNA technology in 1973. Application Application in Agriculture, Industry Industry,, Medicine It is estimated that by 2025, BIO-DRUGS would replace 70% of conventional Therapies. Therapies. The global biotech industry was $84.6 billion in 2010 and is expected to grow at a 7% CAGR to $103 billion by 2013.
Top 10 Global Biotech Corporations, 2010 In terms of Revenue Ranking
Corporation
1
Roche
2
Amgen Inc
3
Gilead Sciences Inc
4
Biogen Idec Inc.
5
UCB SA
6
Genzyme Corp
7
CSL Ltd.
8
Celgene Corp
9
Cephalon Inc.
10
Actelion Ltd Source : www.pharmaliv www.pharmalive.com e.com
INDIAN BIOTECHNOLOGY INDUSTRY Indian biotechnology industry revenues touched Rs 15,000 crores in 2010-2011. The industry has grown consistently in double digits over the last decade with average revenue growth figures greater than 20%. It is estimated to reach a turnover of around Rs 45,000 crores by 2015
Source - The Biospectrum-ABLE industry survey 2011
o pec rum-
Rank
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
s ng o
Company Biocon Serum Institute of India Panacea Biotec Nuziveedu Seeds Reliance Life Sciences* Quintiles India* NovoNordisk Rasi Seeds Mahyco* Transasia Ankur Seeds Syngene International Bharat Biotech * Indian Immunologicals Krishidhan Seeds Shantha Biotech* Novozymes South Asia * Bharat Serums Jubilant Life Sciences Eli Lilly
op
o ec
ompan es
Revenue 2010-11 1483 1041 928.41 610 490 476.25 462 371.88 364.9 350 325 318 298.34 283 276.13 272 242 226 210 204
Change over 2009-10 (%) 2011 (%) 25.68 22.47 32.05 27.92 8.89 27 27.62 3.65 16.96 88.17 196.8 26.19 9.82 3.76 107.26 -18.62 8.04 29.14 -15.76 9.25
BIOCON – THE JOURNEY BEGINS Collaboration between Irish firm Biocon International and kiran with kiran owning 70% equity. Started Biocon India in 1978 from her garage with initial capital of Rs. 10000. During next 15 years focused on Solid State Fermentation. Biocon Secured a US Patent for reactor know as Plafactor for the manufacture of drugs.
VISION AND MISSION
Vision To promote social and economic inclusion by ensuring that marginalized communities have equal access to healthcare services.
Mission To be an integrated biotechnology enterprise of global distinction.
BIOCON AND ITS SUBSIDIARIES
DR. KIRAN MAZUMDAR SHAW ENTREPRENEUR Visionary Innovative Leadership skills Risk averse Market analyst Self confident and optimist
DR. KIRAN MAZUMDAR SHAW ENTREPRENEUR
Kiran Mazumdar-Shaw's pioneering efforts in biotechnology have drawn global recognition both for Indian Industry and Biocon. Her unique vision has steered Biocon's transition from an industrial enzymes company to an integrated biopharmaceutical company with strategic research initiatives. Ms. Shaw is the recipient of several prestigious awards including Best Woman Entrepreneur, Model Employer, Ernst & Young's Entrepreneur of the Year Award for Life Sciences & Healthcare, Leading Exporter, Outstanding Citizen, Technology Pioneer, etc. Her most cherished award is however, the PADMASHRI (1989) presented to her by the then President of India, for her pioneering efforts in Industrial Biotechnology.
FEW MILESTONES ACHIEVED BY BIOCON
1978 - Incorporated as JV-Biocon Biochemicals Ltd & Kiran Mazumdar-Shaw.
1979 - First Indian company to manufacture and export enzymes to USA and Europe .
1996 - The commercial success of Biocon's proprietary fermentation plant leads to a 3-fold expansion; enters biopharmaceuticals and statins.
1998 - Unilever agrees to sell its shareholding in Biocon to the Indian promoters. Biocon becomes an independent entity
2000 - Establishes Clinigene, India's first Clinical Research Organisation (CRO).
2003 – First company worldwide to develop human insulin (Pichia expression system).
2006 - Inaugurates Biocon Biopharmaceuticals, India's largest multi-product Biologics facility ; India's first anti-cancer drug, BIOMAb EGFR ®.
2008 - Biocon acquires 70% stake in German pharmaceutical company, AxiCorp GmbH
2009 Biocon launches BASALOGTM - long lasting basal insulin for Type 1 & Type 2 Diabetics. -
COMPETITORS
Wockhardt Limited Sun Pharmaceutical Industries Limited Ranbaxy Laboratories Limited Bharat Biotech International Limited Dr. Reddy's Laboratories Limited Oramed Pharmaceuticals, Inc.
PRODUCTS & SERVICES ENZYMES BIOPHARMACEUTICALS Small Molecules
Biologicals
CLINICAL RESEARCH CUSTOM RESEARCH
Dosage Forms
SWOT ANALYSIS
Internal Strengths Biocon’s strength lies in consolidated skills in producing enzymes. Another Biocon’s strength lies in its de-risked business model.
Biocon is US FDA Certified Company which gives it a wide scope to enter global markets. This company is also the market Leader in India which becomes its one of the major strengths. Its core competence in molecular biology is one of the strengths it has. Internal low cost of clinical research gives it the power to stand and fight with all the competitors in the market. Last but not the least development of Oral Insulin is also one of its major strengths.
SWOT ANALYSIS
Internal Weaknesses 80% of Biocon’s turnover comes from Statins which also makes 45% of its revenues. Biocon’s another major weakness lies because of its capacity build up in CRO. Moreover it also has the least expertise in final stage which is very important. Its marketing activities have been poor due to investments in other activities of the company
SWOT ANALYSIS
External Opportunity $82 billion worth global b”busters facing patent expiry India Share of Global generic market Increased to 33% from 4 % Enzymes market growing at 6.5 % Outsourcing to reduce cost India preferred destination for clinical trails ( $70 million – 20% Gr) 177 Mn ( G )/ 45 Mn (I) Diabetic Patients 9 million cancer cases Entry of venture capitalist.
SWOT ANALYSIS External Threats
Risk in drug discovery Generics Market Being over crowded Strict IP regulatory laws Low cost Chinese Competitors Intense Competion in CRO
PEST ANALYSIS
Political Factors
•The Minister in charge of the industry has been threatening to
impose even morestringent Price Control on the industry than before. •Effective January, 2005 the country goes in for the IPR (Intellectual Property Rights)regime, popularly known as the Patent Act. This Act will impact the PharmaceuticalIndustry the most. •In Pharma industry there is a huge PSU segment which is chronically sick and highlyinefficient. •.Effective the January, 2005 the Government has shifted from charging the ExciseDuty on the cost of manufacturing to the MRP thereby making the finished productsmore costly
PEST ANALYSIS Economic Factors
India spends a very small proportion of its GDP on healthcare ( A mere 1% ). Thishas stunted the demand and therefore the growth of the industry. Per capita income of an average Indian is low ( Rs. 12,890 ), therefore, spending onthe healthcare takes a low priority. The incidence of Taxes are very high
PEST ANALYSIS Socio-cultural Factors Poverty and associated malnutrition dramatically exacerbate the incidence of Malaria and TB, preventable diseases that continue to play havoc in India decadesafter they were eradicated in other countries. Poor Sanitation and polluted water sources prematurely end the life of about 1million children under the age of five every year. Large joint families transmit communicable diseases amongst the members Cattle-rearing encourage diseases communicated by animals.
PEST ANALYSIS Technological Factors
Advanced automated machines have increased the output and reduced the cost. Computerization has increased the efficiency of the Pharma Industry. Advances in Bio-technology, Stem-cell research have given India a step forward. Newer drug delivery systems are the innovations of the day
STRATEGY
Diversification rather than Expansion – Sequential Growth Strategy – Adding interlinked Business. Strategic alliances with Global Biotech firms as a way of Sharing development cost. PFIZER – 2011 OPTIMER – 2011 NOBEX CORP USA
Focusing on Molecular Biology - Fermentation rather than Synthetic Chemistry to differentiate itself from competitors. Using Generics Platform to move into Drug Discovery.
STRATEGY Innovation – Led Strategy
STRATEGY
Split Business Technique
Syngene Clinigene Biocon
MARKET ANALYSIS
FINANCIAL ANALYSIS
FINANCIAL ANALYSIS
FINANCIAL ANALYSIS
FINANCIAL ANALYSIS
FINANCIAL ANALYSIS
FINANCIAL ANALYSIS
Biocon’s net sales grew by 17% to 13,250,660 in 2010-11. Company’s
domestic revenues from product sales have increased by 25%, and exports sales have increased by 8%. The current assets, loans and advances have increased by 18% over the previous year. The current ratio have increased by 8.5% over the previous year.
BCG ANALYSIS ENZYMES
ENZYMES
CLINIC RESEARCH
CLINIC RESEARCH
BIOPHARMACEUTICAL
BIO-PHARMACEUTICAL
CUSTOM RESEARCH
CUSTOM RESEARCH
CONCLUSION On the manufacturing front, the innovation efforts should be directed towards delivering the highest quality at the lowest cost. On the services front, Syngene and Clinigene must aim to compete by augmenting specialized skills to deliver increasingly higher value services in a cost effective manner. On the research front, Biocon should pursue a strategy that will deliver incremental and transformational innovation in an affordable manner. Underlying these efforts there must be an un-flinching commitment to operational excellence which is now a prerequisite for global competitiveness.
