Biocon Ltd.

: Building a Biotech Powerhouse

Company Case Analysis EMBA 240 Professor Sanjay Jain Robert Paul Ellentuck EMBA 2011 5/29/2010

Contents
Introduction In the Beginning Becoming Established Success Factors A Leader in Mazumdar-Shaw Areas of Concern Diversifying the Portfolio Setting a Course Conclusion

Kiran Mazumdar-Shaw, founder of Biocon Ltd, 1978

Introduction
Today Biocon Ltd is in the top-10 of international biotechnology companys by numbers of employees Today Biocon Ltd is in the top-20 of international biotechnology companys by gross annual sales Tomorrow Biocon Ltd aims to be the top-10 of international biotechnology companys by gross annual sales

In the Beginning
1978 current majority shareholder and chief executive officer Kiran Mazumdar-Shaw established Biocon Ltd as a spin-off from Ireland based Biocon Biochemicals Limited (BBL) Grew as a generic drug manufacturer to a fully integrated biopharmaceutical firm Gained competitive advantage in enzyme production through patented fermentation IPO in March 2004 valued at $1.1 billion

Becoming Established
Formed controlling interest through acquisition or creation of subsidiaries
Syngene for custom research in 1993 Clinigene for clinical in 2000 CIMAB for development in 2008 Axicorp for commercialization in 2009

Opened Drug Discovery Pipeline

Focused on diabetes and oncology

Success Factors
Enzyme manufacturing Solid source of revenue from generic drugs Core competence of molecular biology Wise business practices with subsidiaries In-house R&D team and biodiversity program to discover new biotech products Reliance on partnerships with global biotech firms to share development costs

A Leader in Mazumdar-Shaw
Established sequential growth strategy Consolidated core skills in enzymes, established footprint in biopharmaceuticals, partnered with global firms Developed cross functional teams to encourage empowerment Clear communicator for shaping organizational values Pursues exciting biotechnology opportunities

Areas of Concern
Risk associated with drug discovery Low availability of venture capital in India Implementation of WTO patent law Competition with European players Capabilities/skill level of subsidiaries Limited experience in commercialization

Diversifying the Portfolio

Biocons Drug Discovery Pipeline

Setting a Course
Goal: Become a top-10 biotechnology firm by reaching annual sales of $1 billion by 2015 Reasons for Success
Leadership commitment Sequential growth strategy to date Solid source of revenue from established programs Risk associated with drug discovery Regulatory environment Ability of subsidiaries Build highly effective management team Create a diverse portfolio Manage risks and monitor consequences

Reasons for Concern

Action Plan

Conclusion
Poised to continue growing Must carefully target opportunities for existing market expansion and new market introduction Likely to achieve $1 billion gross annual sales target by 2015, but reaching top-10 will depend on competitors performance Recommend broader brand recognition across research, development and commercialization
Absorb subsidiaries and gain ground internationally

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