Submitted By:Aparna Vyas Barun Kumar Jayshree Bharti Manoj Dubey Rajesh Kumar Saurabh Mehta Manoj DubeyVeeresh Tripathi GLOBAL BIOTECHNOLOGY INDUSTRY Discovery of Recombinant DNA technology in 1973. Application in Agriculture, Industry, Medicine It is estimated that by 2025, BIO-DRUGS would replace 70% of conventional 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 1 2 3 4 5 6 7 8 Corporation Roche Amgen Inc Gilead Sciences Inc Biogen Idec Inc. UCB SA Genzyme Corp CSL Ltd. Celgene Corp 9 10 Cephalon Inc. Actelion Ltd Source : www.pharmalive.com The Biospectrum-ABLE industry survey 2011 . The industry has grown consistently in double digits over the last decade with average revenue growth figures greater than 20%.INDIAN BIOTECHNOLOGY INDUSTRY Indian biotechnology industry revenues touched Rs 15.000 crores by 2015 Source . It is estimated to reach a turnover of around Rs 45.000 crores in 2010-2011. 47 Panacea Biotec 928.89 Quintiles India* 476.9 16.17 Ankur Seeds 325 196.34 9.76 Eli Lilly 204 9.8 Syngene International 318 26.19 Bharat Biotech * 298.25 27 NovoNordisk 462 27.65 Mahyco* 364.76 Krishidhan Seeds 276.13 107.05 Nuziveedu Seeds 610 27.41 32.14 Jubilant Life Sciences 210 -15.04 Bharat Serums 226 29.92 Reliance Life Sciences* 490 8.26 Shantha Biotech* 272 -18.62 Novozymes South Asia * 242 8.25 Notes: * represents BioSpectrum estimates .96 Transasia 350 88.68 Serum Institute of India 1041 22.88 3.62 Rasi Seeds 371.82 Indian Immunologicals 283 3.Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 9th BioSpectrum-ABLE listing of Top 20 BioTech Companies 2010-11 Change over Company Revenue 2009-10 (%) 2010-11 2011 (%) Biocon 1483 25. BIOCON – THE JOURNEY BEGINS Collaboration between Irish firm Biocon International and kiran with kiran owning 70% equity. . 10000. Biocon Secured a US Patent for reactor know as Plafactor for the manufacture of drugs. During next 15 years focused on Solid State Fermentation. Started Biocon India in 1978 from her garage with initial capital of Rs. . Mission To be an integrated biotechnology enterprise of global distinction.VISION AND MISSION Vision To promote social and economic inclusion by ensuring that marginalized communities have equal access to healthcare services. BIOCON AND ITS SUBSIDIARIES . KIRAN MAZUMDAR SHAW ENTREPRENEUR Visionary Innovative Leadership skills Risk averse Market analyst Self confident and optimist .DR. etc. KIRAN MAZUMDAR SHAW ENTREPRENEUR Kiran Mazumdar-Shaw's pioneering efforts in biotechnology have drawn global recognition both for Indian Industry and Biocon. Leading Exporter. . Ms. Her unique vision has steered Biocon's transition from an industrial enzymes company to an integrated biopharmaceutical company with strategic research initiatives. for her pioneering efforts in Industrial Biotechnology.DR. Her most cherished award is however. Model Employer. the PADMASHRI (1989) presented to her by the then President of India. Technology Pioneer. Ernst & Young's Entrepreneur of the Year Award for Life Sciences & Healthcare. Outstanding Citizen. Shaw is the recipient of several prestigious awards including Best Woman Entrepreneur. First Indian company to manufacture and export enzymes to USA and Europe.Inaugurates Biocon Biopharmaceuticals. 2006 .long lasting basal insulin for Type 1 & Type 2 Diabetics. 1979 . AxiCorp GmbH 2009 . enters biopharmaceuticals and statins. . India's first anti-cancer drug.Unilever agrees to sell its shareholding in Biocon to the Indian promoters. India's first Clinical Research Organisation (CRO). 2008 .Biocon launches BASALOGTM .The commercial success of Biocon's proprietary fermentation plant leads to a 3-fold expansion. 2003 –First company worldwide to develop human insulin (Pichia expression system). Biocon becomes an independent entity 2000 .Establishes Clinigene.Incorporated as JV-Biocon Biochemicals Ltd & Kiran Mazumdar-Shaw.Biocon acquires 70% stake in German pharmaceutical company. BIOMAb EGFR®.FEW MILESTONES ACHIEVED BY BIOCON 1978 . 1996 . India's largest multi-product Biologics facility . 1998 . . Reddy's Laboratories Limited Oramed Pharmaceuticals.COMPETITORS Wockhardt Limited Sun Pharmaceutical Industries Limited Ranbaxy Laboratories Limited Bharat Biotech International Limited Dr. Inc. PRODUCTS & SERVICES ENZYMES BIOPHARMACEUTICALS Small Molecules Biologicals Dosage Forms CLINICAL RESEARCH CUSTOM RESEARCH . Biocon is US FDA Certified Company which gives it a wide scope to enter global markets.SWOT ANALYSIS Internal Strengths Biocon’s strength lies in consolidated skills in producing enzymes. This company is also the market Leader in India which becomes its one of the major strengths. Last but not the least development of Oral Insulin is also one of its major strengths. Internal low cost of clinical research gives it the power to stand and fight with all the competitors in the market. Another Biocon’s strength lies in its de-risked business model. Its core competence in molecular biology is one of the strengths it has. . Its marketing activities have been poor due to investments in other activities of the company . Moreover it also has the least expertise in final stage which is very important.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. 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. 2005 the country goes in for the IPR (Intellectual Property Rights)regime. popularly known as the Patent Act. •Effective January. 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 . spending onthe healthcare takes a low priority.890 ). Thishas stunted the demand and therefore the growth of the industry. Per capita income of an average Indian is low ( Rs.PEST ANALYSIS Economic Factors India spends a very small proportion of its GDP on healthcare ( A mere 1% ). 12. The incidence of Taxes are very high . therefore. 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. . Large joint families transmit communicable diseases amongst the members Cattle-rearing encourage diseases communicated by animals. Poor Sanitation and polluted water sources prematurely end the life of about 1million children under the age of five every year. Stem-cell research have given India a step forward. Computerization has increased the efficiency of the Pharma Industry. Advances in Bio-technology. Newer drug delivery systems are the innovations of the day .PEST ANALYSIS Technological Factors Advanced automated machines have increased the output and reduced the cost. Fermentation rather than Synthetic Chemistry to differentiate itself from competitors. Using Generics Platform to move into Drug Discovery.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 . STRATEGY Innovation – Led Strategy . STRATEGY Split Business Technique Syngene Clinigene Biocon . MARKET ANALYSIS . FINANCIAL ANALYSIS . FINANCIAL ANALYSIS . FINANCIAL ANALYSIS . FINANCIAL ANALYSIS . FINANCIAL ANALYSIS . 250.5% over the previous year. loans and advances have increased by 18% over the previous year. The current ratio have increased by 8.FINANCIAL ANALYSIS Biocon’s net sales grew by 17% to 13. and exports sales have increased by 8%. Company’s domestic revenues from product sales have increased by 25%.660 in 2010-11. . The current assets. BCG ANALYSIS ENZYMES BIOPHARMACEUTICAL ENZYMES BIO-PHARMACEUTICAL CLINIC RESEARCH CUSTOM RESEARCH CLINIC RESEARCH CUSTOM RESEARCH . On the services front. Biocon should pursue a strategy that will deliver incremental and transformational innovation in an affordable manner.CONCLUSION On the manufacturing front. On the research front. Syngene and Clinigene must aim to compete by augmenting specialized skills to deliver increasingly higher value services in a cost effective manner. Underlying these efforts there must be an un-flinching commitment to operational excellence which is now a prerequisite for global competitiveness. . the innovation efforts should be directed towards delivering the highest quality at the lowest cost. THANK YOU .