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Biocon

Biocon was considering launching BIOMAb, its first proprietary cancer drug in India, after successful phase 2 trials but before completing phase 3 trials. This would give it first mover advantage but lack of phase 3 data could undermine credibility. It had to decide on pricing, marketing channels, and promotional strategies to maximize sales while ensuring affordability and a quick break-even point. Direct sales to doctors may cut costs but using traditional pharmaceutical channels could increase recommendations from physicians.

Uploaded by

Rajdeep Basu
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© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
140 views

Biocon

Biocon was considering launching BIOMAb, its first proprietary cancer drug in India, after successful phase 2 trials but before completing phase 3 trials. This would give it first mover advantage but lack of phase 3 data could undermine credibility. It had to decide on pricing, marketing channels, and promotional strategies to maximize sales while ensuring affordability and a quick break-even point. Direct sales to doctors may cut costs but using traditional pharmaceutical channels could increase recommendations from physicians.

Uploaded by

Rajdeep Basu
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Biocon: Launching a new cancer

drug in India
About Biocon:

Biocon was the first Indian company to manufacture and export


enzymes to US and EUROPE in the year 1979.
It was primarily into enzyme manufacturing from 1978 to 1997.
In 2001, it started manufacturing insulin.
Formed a joint venture with CIMAB to develop and market BIOMAb in
India.

Situation Analysis:

BIOCON shifted to proprietary drug i.e. BIOMAb.


Challenges faced by BIOCON
o Decision on whether to launch after 2nd phase or wait for 3rd
phase trials
o Product Competition
o Launch decision
o Pricing decisions and Channels
o Marketing and Selling

Decision related to Launch Strategy:


Immediate
Launch
Opportunity

First Mover
Advantage

No competition
during entry for
multiple
indications after
successful phase
2 results

Simultaneous
Launch with
generics
Sales
representatives
would get more
face time with
doctors (helped by
the generics)

Selling generics
would give a
revenue base with
which they can go
after multiple
indications

Launch
generics before
BIOMAb
Launching
generics before
BIOMAb would
allow the
company to
strengthen the
sales capabilities
before launching
BIOMAb

Threats

Absence of phase
3 results would
put the credibility
under question

Might dilute the


image of BIOCON
as the first Indian
company to
launch a
proprietary drug

No prior
experience in
selling and
marketing
oncology drugs

First mover
advantage no
longer available

Stiff competition
from Erbitux

Break Even Analysis:


Capital Invested
Price/Dose
Cost/Dose
Research/Dose
Marketing
Expense
Profit/Dose
Break Even Point

Price Analysis
25,000,000
25,000,000
1000
2000
250
500
150
300
275
550
325
76,923

650
38,462

25,000,000
2500
625
375
688
813
30,769

Price Analysis:
1. Price that is affordable yet meets corporate objective.
2. Pricing decision based on treatment cycles. BIOMAb had advantage
over Erbitux but due to the phase 2 trials (limited trial data).
3. Low price can put off the prospective doctors.

Channel Analysis:
1. BIOMAb can be sold directly to doctors or through traditional pharma
channels
2. Low volume shipment anticipated.
3. The drug would require refrigeration (little value to local pharmacy)
and conventional rationale states that the manufacturer use the direct
channel.
4. Using direct channel would cut out the channel margins and add
significant benefit to the customer but would also rule out the
involvement of doctors.

5. Traditional channel option would allow doctors and physicians to


recommend the product to the customers which would evidently
increase the sale of the product.

Promotion Analysis:
1. Initial product would target oncologists and specialists. Customers
would not second guess a doctors recommendation
2. Along with selling the product, they would offer support and
information to the patients and family.
3. Involve celebrities to endorse the product.

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