Case Study Presentation

Naushina Virani Vishal Pathak Shariq Vignesh.R Saumya Biswas Purnendu Rout

Friday, April 7, 2023

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Sales Management (Term-6)

BIOCON India (incorporation 1978) was the first Indian manufacturer and exporter of ENZYMES to U.S and Europe.lateron developed expertise in FERMENTATION processes.

Many R&D companies established by BIOCON. Then entered in to biopharmaceuticals and then statins and then moved to insulin.

BIOCON shifted to proprietary drug i.e. BIOMAb(cancer drug). Challenges in front of BIOCON for launching BIOMAb-

1.Approval 2.new technology. 3.launching decision. 4.financial requirements. 5.marketing and selling.


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COLLABORATIVEDEVELOPMENT/ INLICENCING(Medium to Long Term)

• Developing Non-Infringing process Technology

•Focus on Drug Molecules coming off patent

•Develop globally competitive process technologies.

GENERIC BIOPHARMACEUTICALS(Short to Medium Term)

DISCOVERY(Long Term)

•Develop products in collaboration with other partners

•Discover and develop New Drug Molecules


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Monoclonal Antibodies that target Cancer cells a research by CIM Cuba

Formed a Joint Venture with CIMAB (Canadian R&D Company) to develop and marketing of BIOMAb in India

First proprietary drug to be launched by an Indian Company, specially aimed at head and neck cancer treatment.

Requirements of BIOMAb – $ 25 Million for Manufacturing plant, according to VP of Finance –

• cost of goods – 25% of Revenue• R&D – 15% of Revenue• Marketing – 25-30% of Revenue


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Cancer Type Incidence Affordability No. of PatientsHead and Neck 190,000 1% 1,900Lung 39,205 1.85% 725Colorectal 37,213 3% 1,116Brain 22,150 2% 443Pancreas 10,325 1.25% 130


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Types of cancerTypes of cancer•Blood Cancer•Bone Cancer•Brain Cancer•Breast Cancer•Eye Cancer:•Respiratory Cancers•Head and Neck Cancer

WORLD: It is estimated that about 9 million new cancer cases are diagnosed every year and over 4.5 million people die from cancer each year in the world.

INDIA: The estimated number of new cancers in India per year is about 7 lakhs and over 3.5 lakhs people die of cancer each year. Out of these 7 lakhs new cancers about 2.3 lakhs (33%) cancers are tobacco related.

KARNATAKA: There would be about 1.5 lakhs cancer cases at any given time in Karnataka and about 35,000 new cancer cases are added to this pool each year.


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More than 7.6 million of the 58 million died due to cancer in 2005.

Cancer deaths excepted to rise 9 million in 2015, and 11.4 million in 2030.

Cancer ,the second leading cause after heart disease.

In 2003,more than half a million or 22% of all deaths due to cancer in united states.


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According to WHO,40% of cancers could be prevented by life style changes such as quitting smoking and alcohol.

Treatment Surgery Radiotherapy Chemotherapy Biological therapy


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ERBITUX is the main competitor, developed in U.S for colorectal cancer and approved by USFDA in 2004.

Available in 53 Countries – Germany, US, India

Worldwide sales in 2006 exceeded $ 1 Billion.

In 2006 got approval from European Medicine Agency & USFDA for Head & Neck Cancer.

BIOMAb’s advantages over competitor • Phase-2 results shown 100% response• BIOMAb did not produce skin rashes • BIOMAb is first proprietary drug for Indian patients.

Friday, April 7, 2023Sales Management (Term-6)

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Product•Launch timing

and market selection

decisions linked with product

portfolio

PlaceBIOCON—CFA---

Wholesalers---retail---hospital

pharmacy---doctor.

PriceAffordable

pricing which also meets corporate objective

Promotion1.Through Oncologist.2.providing

information to patients regarding

disease.

4 P’s


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Immediate launch of BIOMAb

Launch a group of Cancer Generic First and BIOMAb Later

Simultaneouslaunch

Advantages Advantages Advantages

First mover advantage

No competition during entry

Opportunity to strengthen sales capabilities before the launch of BIOMAb Availability of phase three results will justify the launch of BIOMAb later

Sales representative are likely to get more face time with the doctor

Disadvantages Disadvantages Disadvantages

Biocon has limited sales capabilities and zero experience in selling and marketing oncology drugs

First mover advantage lost It may diluteBiocon’s image asthe first Indian company tolaunch a proprietary drug


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Channels:- The product should be sold directly the Doctors, as direct

selling will increase less amount of costs

Market size is not too large, so 24 x 7 services may not be required.

Traditional Channel of Distribution:

If the product sold through above traditional channel of distribution, it will increase the cost to large amount.

Biocon Wholesaler

Retail/hospital Pharmacy

Doctor


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Price:- Price of the product should be competitive

Company should also focus on ROI, while deciding the pricing policy of the product.


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Marketing the Product. Sales representatives of the company should educate the

patients and their families.

Sales reps should focus on explaining the product and usage.

The contact time and frequency is at its highest during the treatment period.


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Friday, April 7, 2023Sales Management (Term-6)

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Particulars 2006 2005 2004Rs. In Thousands*

IncomeGross Sales 7,246,713 6,824,047 5,309,108Less: Excise Duty 371,789 378,423 290,284Net Sales 6,874,924 6,445,624 5,018,824Technical Licencing/Contract Research Fee 1,474 6,382Other Income 56,911 156,513 9,256

6,931,835 6,603,611 5,034,462

ExpenditureMaterial Costs 3,790,109 3,441,546 2,553,672Employee Costs 420,600 420,935 352,847Operating and Other Expenses 867,009 673,189 498,934Interest and Finance Charges 16,887 19,931 15,677

5,094,605 4,555,601 3,421,130

Profit Before Depriciation and Taxes 1,837,230 2,048,010 1,613,332Depreciation net of transfers 228,496 182,521 140,200Depreciation 1,606 1,670Less: Amount transferred from revaluation reserve 180,915 138,530

1,608,734 1,865,489 1,473,132

Profit Before Taxes 1,608,734 1,865,489 1,473,132Provision for Income Tax 208,633 98,298 194,453Current Taxes Defferred Taxes 60,141 42,197 33,623 Fringe Benefits 5,130Net Profit for the Year 1,334,830 1,724,994 1,245,056


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Thank You


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