INTRODUCTIONBiocon India was incorporated as a joint venture in 1978 between Biocon Chemicals and Dr. Mazumdar- Shaw who was a Indian Entrepreneur. In 1979, Biocon became the first Indian company to manufacture and export to the enzymes to Europe and USA. With success they established Syngene International, a subsidiary custom research company with the vision of entering Bio-Pharmaceuticals. This move was also triggered by Unilevers resistance to comply with this move, a higher demand, a bigger market potential and expiring patents of major brands. They also moved into the insulin market which was a large global market with especially India accounting for 20% of global diabetic population. By this time Biocon had also developed technological capabilities and capacities to produce Insulin. Having established as an upcoming brand with strong financials and technology, Biocon tried to move into proprietary drugs with BIOMAb with a vision to look for interesting products to develop from all over the world and leveraging expertise in return for a joint ownership of the intellectual property. Biocon thus entered a joint venture with CIMAB, a Cuban company that would license Biocon to develop and market Cancer related drug in the Indian Subcontinent. With CancerVax, a Californian biotech firm, receiving a US government approval to license drugs by CIMAB, Biocon got the opportunity to commercialize the product within the US, Canada, Western Europe, Japan, Australia, New Zealand and Mexico.

COMPETITIONBIOMAb faced competition in the form of Erbitux, a head and cancer drug that was in line to be distributed across India developed by Merck. The drug had received phase 3 approval by the time of its tentative arrival in India. It was a high end speciality product which commanded large premiums. However, BIOMAb had shown better results in Phase-2 testing and also did not produce side effects like skin rashes. The product being essentially Indian also helped Biocon leverage the fact against Erbitux.

PROBLEMBiocon faced a challenge of a launch decision. They were unsure whether to launch a product immediately or not, and if so then with or without the use of generic cancer drugs.

OPTIONSBiocon can either go for immediate launch of the product, simultaneous launch of cancer generics with BIOMAb or launching BIOMAb only after cancer generics. These options can be evaluated keeping in consideration that BIOMAb have a first mover advantage, an Indian connect, flexibility of pricing, immense phase 2 trials success. While immediate launch

4P Analysis

ProductThe testing of BIOMAb has shown positive results. It shows 100% cure rate when being used in combination with chemo and radiotherapy. The rate is lesser when used alone or with one of chemo or radiotherapies. It also shows lesser side effects in terms of skin rash when compared to Erbitux. Erbitux is marketed in India through Merck. BIOMAb will be the first ever proprietary drug developed and marketed by an Indian firm, for the Indian patients. In house sales capabilities are developed by selling the high end speciality products which can be further leveraged for catering to international markets as well. As for the packaging of the product, 4 Injections of 10ml each is packed in a cardboard box. The colours used on the cardboard box are same as those used in standard Biocon products (Blue and White). A single SKU is used.

PriceSince the product is developed in India itself and marketed under an Indian name, the price is kept low enough to project affordability for the Indian market. These prices are substantially low compared to the global market. The price is set at $3000 per dose of BIOMAb in order to gain an advantage over the competitor as well as keep a sufficient profit margin. Since a big chunk of the market includes blue collared workers, the image of Low price will work to our advantage as it will not indicate an image of low quality and portrays affordability. After considering the costs involved and the projected revenues using the price of $3000 per dose, the breakeven period is found to be 2.44 years.

PlaceExcellent coverage of the market is obtained with the support of Clearing and Forwarding agent (CFA). Time delivery is an important factor. So, the existing capabilities can be used to do overnight deliveries to the oncologist. Use Biocons existing offices to develop a dedicated sales force for BIOMAb. Utilizing the direct delivery system will reduce the margin for channels by 25% to 1.5%, thus eliminating the need for a dedicated channel. This will offer greater benefits to the end-user. This will in-turn increase the acceptability over the foreign drug (Erbitux).

PromotionThe number of leading cancer specialists in the country is 300. Using the phase-2 results, a 100 of these specialists can be targeted. Over time, the other 200 can be targeted after the phase-3 results. The patients queries can be addressed by supporting them through information on website, consumer helplines, sales force and advertising. The confidence of the patients and their families along with the doctors can be boosted using appropriate forms of communication. Celebrities who have a personal connection to the fight over the disease can be used to endorse the product. Training the dedicated sales force with better conviction skills to establish the true value of the product.