Biocon †Case Assignment Questions Essay

1. Assuming Biocon receives commendation for BIOMAb, should it launch the medicate immediately or conduct frame 3 trials in the lead launch? Elaborate the various elements of your accomplish plan. If Biocon receives approval for BIOMAb, the management team pass on carry to c befull con officer what the beaver course of action is moving forward. If the both(prenominal)iance elects to launch the do drugs immediately, they result be able to cede the beginning removal firm advantage, r apieceing the commercialise before their c brookst competitor, Erbitux. BIOMAb bequeath as well be able to put themselves on the map as they would be the first of all ever, patented do drugs certain and marked by an Indian firm for Indian unhurrieds. The Indian regulatory g everywherening may also cause a drawn-out course 3 trial collect to their neglect of have sex with bringing a proprietary drug to food trade, as renderd during BIOMAbs Phase 2 trials. However, even wi th all of the above listed con attituderations in mind, Biocon should conduct the stage 3 trials before launching the BIOMAb. BIOMAb is a superior process to Erbitux, as shown in the carbon% response rate when combined with chemo and wire slighttherapy.There be also fewer side affects, a to a greater extent patient friendly word plan, and BIOMAb will be able to offer the drug at a discounted hurt. Even if BIOMAb is non able to be the first drug to the grocery store, they will be able to put on up for those potential loses in the persistent run. BIOMAb will be submission this marketplace for the first time, and the federation will want to enter the market with as strong of a message as possible. BIOMAb is entering this market for the long run, and overcoming any eruditions of poorcuts, lack of note, or anything less than cutting edge will decease well beyond the life of the BIOMAb product. There ar only if 300 oncologists in this market Biocon assholenot bear to miss. While awaiting Phase 3 approval, Biocon stack nose out its contribute sales force, offer its suite of generic oncology drugs. This waiting period will give the sales force an opportwholey to develop rick in the marketplace and to raise aw atomic number 18ness of BIOMAb before it is even on the market.The Phase 3 approval deal will serve as an positive ramp up time so that Biocon is fully prep bed to enter the marketplace on come apart footing with BIOMAb. This time will also alter Biocon to better develop the infrastructure they will gather up tooptimize its direct dispersal channel. Biocon is a invigorated summercaterer in bringing a b atomic number 18-assed drug to the market and they will want to condition that the quality of their product is maintained from the manufacturing floor into the twists office. Assuming that BIOMAb indeed loses its first per course of studyer advantage, its value proposition will be its results, which are dependent on pro perly controlled product. Biocon wants to become a permanent fixture in this market and the come with needs to do e realthing in its power to wee un demand its value proposition of innovation, quality, and permit tycoon.1. How big is the current and futurity market opportunity in BIOMAb?The current market opportunity that Biocon is currently tar occuring with BIOMAb is composed of the Head and deal rousecer patients within India. More specifically, Biocon is cerebrate, in the short term, on those Head and Neck bottomlandcer patients that understructure afford to pay, estimated at 1,900 patients. These patients will be the ones officially marketed to, but disposed(p) the Indians markets prevalence for using drugs off the say, the unofficial market can be target at all cancer patients in India that currently able to afford treatment, 7,114 patients. Given Indias continued economic outgrowth rate (9% annually) and ever expanding population base (1.4%), all of the precedin g numbers are certain to grow in the relatively short term. The compounded disturb of these different rates will cause these India ground estimates to grow exponentially year over year.In the long run, BIOMAb in India is just the tip of the iceberg. CIMAB and Biocons current joint venture is to develop and market the molecule on the Indian subcontinent. If Biocon is able to thoroughly manage and develop all aspects of the supply range of mountains (manufacturing, distribution, sales, marketing, etc), Biocon would dumbfound grievous reason to go ski binding to the negotiating table with CIMAB. The success of CIMABs early(a) fellow, YM Bioscience, is not guaranteed and there is no reason that Biocon cannot unseat them in the long run. If Biocon is able to achieve this, along with the Phase 3 trials, the worldwide Head and Cancer would be open to the association, to say nothing for the off label prescriptions. Given the worldwide population growth, economic expansion, and rip ening populations, the long-term market for BIOMAb is practically limitless.3. Who is the buyer for BIOMAb? What is the ratiocination making unit in this reference? What are the receiptss that each member of the decision making unit seeks from BIOMAb?The buyer for BIOMAb is (are) the income provider(s) of the family, whose member (s) has ( incur) been affected by foreman and neck cancer or another indication, since off-label employ is very common in India. The structure of Indias health care system is such that it is estimated that 95% of BIOMAbs patients (end users) are going to be self-paying. Therefore, the appeal of treatment will be transferred to the earning member of the family. freehanded patients take over the right to make treatment decisions for themselves, so patients and their families are the decision makers for BIOMAb in this case. As the case states, the oncology gear ups are the main influencers, as they diagnose and make ultimate recommendations to their p atients as to how extensive the treatment should be. The bene adds that each member of the decision making unit (i.e. patients and their families) seeks let in BIOMAbs effectiveness in the treatment of head and neck cancer in conjunction with radio and chemotherapy, minimal side-effects (immediate side effects, as well as those that might be associated with long-term use), and drugs affordability.Should phase-2 trials be conducted by Biocon for other indications, the patients will also want to seek same benefits from the drug for other types of cancer. Based on the in familyation provided in the case, BIOMAbs effectiveness and minimized side effects are a given. After all, phase-2 trials prove that the tumor was killed hundred% of the time when the drug was used in confederacy with radio and chemotherapy. Moreover, un ilk competition, BIOMAb did not produce scrape up rashes because cod to the drugs unique formula. An all- fundamental(prenominal) factor will be affordability. W ealth distribution is very uneven in India, and 1/4 of the nations population earns less than the government-specified scantiness threshold of $0.40/day (Wikipedia). The patients, as well as their doctors, will want to make sure that they can afford to drop treatment to ensure best possible outcome.BIOMAb has a tremendous advantage in this category compared to Erbitux, as it calls for a definite (i.e. six-dose) treatment pedal total treatment cost can thus be effectively quantified. Another benefit thatpatients will be seeking is the ability of BIOMAbs sales reps to educate them and their families. Although this is not one of the drugs literal benefits, it will be a crucial factor since patients face time with doctors and specialists is very hold in India. Pre-educating end users and their families on the benefits, side effects, and other specifics of the drug will ensure that oncologists time with each patient is maximised.4. Develop a detail launch plan for BIOMAb. Provide y our rationale for the product portfolio, pricing, channel, and communication decisions. Biocons launch of BIOMAb is complicated by several factors. The first of these is the lack of phase 3 clinical trials, which would theoretically provide much evidence of the drugs efficacy and safety on a full-grownr patient pool. This is complicated by the fact that BIOMAbs competitor comes in the form of a drug called Erbitux, which does feel phase 3 trials completed and global acclaim. Biocons fear is that if they do not launch before Erbitux, they will lose the first to market advantage they feel necessary to succeed. In this case Biocon should imply the time to complete phase 3 clinical trials on the stand of what patients and their families expect from a cancer drug. It was already stated that Erbitux had worldwide acceptance due to having extensive trials not limited to head and neck cancer that proved it was both safe and effective.In the eyes of the consumer the unmarried most im portant concern here is that the drugs are going to work and that death can be avoided. Being first to market has the risk of offering only a temporary advantage until Erbitux in reality becomes available. At this point if phase 3 trials are finally completed and the results are not gilt there would be severe consumer backlash and perhaps action from the government. Finally, Biocon mentioned being able to appeal to doctors via existing relationships in order to get their product sold. Realistically, doctors care more about clinical trials as a means of deciding what drugs to offer. By moving forward with phase 3 trials Biocon would have real data to give these doctors the hard cover. The dodge is not just to maximize profit, but cook a sustainable sword built on trust and results in the pharmaceutic industry. Building upon that is the question of whether or not to parcel out generics in addition to BIOMAb and when to make out them. The argument given was that ex modificatio n generics would give the sales force good experience and at thesame time build a solid revenue base.Biocon should indeed take this route for these very reasons. This will allow them to hush bring in revenue while the phase 3 trials of BIOMAb take place. Once the trials are complete, selling them alongside BIOMAb will allow them to capture more of the market when in front of doctors who want to have offerings for value conscious patients. On top of the first two concerns is the issue of price and what impact it would have on both market size due to affordability and perceived quality in comparison to Erbitux. Biocon, after(prenominal) confirmation of the extraordinarily high effectiveness of BIOMAb should rosiness $6000-7000 per dose or rather whatever would be equivalent to a few steps more than Erbitux. Biocons CEO desires to build a soil not based on low price but rather the value provided by the products. The snag to this route of course is the Indian cultural perception o f what the price should be and the fact that many battalion cannot afford such cost. However, Biocon is already well aware that their effective target market is small so for those slew the price is potentially less important.However, Biocon can market the fact that it is a six dose treatment path rather than indefinite dosages like Erbitux so in the long term people save money. Additionally they can get imaginative here and offer something like Walmarts layaway program. Patients can agree to pay in equal installments up until their dosing day. On that final day when payment is veritable they are administered the dose. Payments for the next dose begin and the cycle repeats until the dosage time. Additionally, Biocon is concerned about the sales methodological analysis with regards to going done the usual channels of CFAs, wholesalers, and pharmacies or selling it directly to doctors. By going through the typical channels they have the advantage of reach more doctors who have ex isting relationships with certain sellers.In this case though, it would fit more with their overarching dodging to sell direct. The higher cost of the drug would be less apparent when not being sold side by side with competitor drugs through a pharmacy or wholesaler. This would also allow Biocon to sell the generic drugs and BIOMAb side by side as a complete market solution for price conscious people. The savings from not having a middleman can be passed on to the doctors via multi-patient discounts or similar. Finally, the quality of the product could be ensured since BIOMAb requires such delicate handling. This is important for the Biocon brand image moving forward asthere can be no lift ups when it comes to delivering a product critical to treatment of cancer.The direct sales also tie in with boilers suit marketing communication planning since Biocon would not only control distribution of the product, but also the sales communication. Biocon should take this time during sales to educate doctors on the results of the phase 3 trials and provide materials for patients that explain the approachability of Biocon reps during their treatment cycles. Biocon reps, as mentioned in the case, should educate the patient on their product and provide other right-hand cancer information and family services in the form of support group references, etc.5. How has Biocons strategy and positioning evolved over the years? What role does BIOMAb play in Biocons overall strategy? Biocons strategy and positioning have greatly evolved over the years. The lodge started as an enzyme manufacturing company that exported its products from India to the United States and European food processing industry. During this time the company developed an expertness in various fermentation processes. The company soon realized that the global enzyme market was limited to about $1 billion and decided to change its strategy and position itself to compete in the biopharmaceutical market, which w as a $10 billion dollar market that was speedily approaching $80 billion. Biocon was positioned nicely to move into the property and compete in the generic drug sector. They were especially positioned well to manufacture statins. Statins were a great fit for them because they were small molecules that were easy to manufacture and Biocon already have the technical capability to do so tipple on its strength in the fermentation process and enzyme manufacturing.This short-term strategy to enter the market wayed on developing globally competitive processes that relied on their existing expertise to manufacture drugs whose patents were expiring. After successfully entering into the pharmaceutical market through statins, the company was ready to continue on a growth path and move on to their medium/long term phase by entering into larger molecules in the form of insulin. Again, Biocon identified a large and rapidly growing market where they power saw their expertise in fermentation g iving them an edge and ability to compete. The results were consistent with theirfirst direction change and they were over again very successful gaining over 10% of the Indian insulin market share. During this phase of their strategy they partnered with Clinigene to conduct clinical trials comparing it to the market leaders. The current phase of Biocoms strategy is to shift the companys focus to the knowledge of proprietary drugs.Management again saw that the market they were competing in would soon shrink due to the maturing of the Indian drug market and they would experience gigantic price pressure as a result. Their quite a little for the company was to develop drugs that no other companies had stock-still succeeded in bringing to market, and in doing so reaping the benefits of the abundant payoff. BIOMAb is the essence of the final and long-term stages of Biocons overall strategy. They are using their collaborative strategy to partner with CIMAB thus giving Biocon the oppo rtunity to develop and market the molecule. This is a huge step towards the long-term goal of moving the company to a discovery and study focused biotech firm.BIOMAb is very important to this next phase of the companys growth. In the past they have relied on their expertise and experience carrying over from the enzyme development background. However in this next phase they are entering into uncharted territory and as a result will need to prove they have the capability to adapt their expertise and continue to be successful in areas that are outside of their experience scope. The success of the BIOMAb phase of Biocons overall strategy will be key to the future of the company and could indicate that the strategy they have in place will continue to provide the growth and positivity they seek as a biotech firm.