Biocon’s Timeline / Key Milestones:1978:I started Biocon as a JV with an Irish partner to develop enzymes for household and industrial use1984: Set up R&D unit to expand use / applications of enzymes to food productionss1994: Inception of Syngene – to provide research services on early stage (small molecules) discovery program2000 Inception of Clinigene – provide clinical trial services for 3rd parties to capture a gap in the market while making use of an advantage India has in abundance – supply of patients for trialsBiocon obtained USFDA approval to develop lovastatin – a cholesterol-lowering drug whose patent expire in 2001 and in 2003, Biocon also launched its generic human insulin. “India has recently been signatory to WTO TRIPS and that, of course, means Indian companies have to develop propriety molecules if they are to sustain their businesses in the growth trajectory that we all want. 2004:IPO (in Apr) to fund development of Biocon’s research pipeline2005:Confirmed strategic change. “Embarking on new path of growth of innovation…to realize true potential as a global biopharmaceutical innovator”India’s adoption of WTO TRIPS at the start of 2005 meant Indian companies could only produce generics of drugs that had come off patent2006: Price of Statins – generic drug contributing 50% of Biocon’s FY05 earnings – fallen by ~35%2012: Now Biocon hires 6000 people
Building Blocks to Biocon’s Strategic Agility
Resource Fluidity: the internal capability to reconfigure business systems and redeploy resources rapidlyWe have demonstrated this by the Creating different business divisions over the years in response to shifting industry dynamics and opportunities Each of these business units has been a result of shifting market dynamics and our long-term visionRe-allocating people within organisation to fit with changing business strategy has been key over the years. Biocon has altered our recruitment and training programmes to fit the needs of these different units at different timesWe have always emphasized on significant product applications,have a firm commitment to R&D even when resources are scarce. As is evident from the graph and the fact that our R&D spend has never fallen below 5% of total revenues regardless of market conditionsCommitted to bring to market an impressive portfolio of vital products through synergies derived from R&D, collaborations and key partnershipsWith a tailwind of more than thirty years in biopharmaceuticals, Biocon has followed a flexible yet well balanced biopharma strategy and Biocon is committed to factoring ‘more for less’ in all its productofferings
To navigate the challenges of innovation in the next decade we have adopted a well-defined strategic framework that will transform scientific discoveries into advances in human healthcare and generate incremental value for our shareholders.Our Innovation Matrix is a four-dimensional endeavour which extends into the realms of the known and the unknown. Creativity in the known realm builds on existing knowledge and can result in two types of innovation: INCREMENTAL and EVOLUTIONARY. Creativity that challenges unknown boundaries and creates new knowledge is EXPERIMENTAL and TRANSFORMATIONAL in its impact. A portfolio that covers all four spheres enables Biocon to sustain innovation in the short, medium and long term.
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Achieving Strategic Agility E417 C SPR12 Group 10 : The Biocon Story
Biocon:Early Mover into Important New Business Areas • Shortage j patients & of • India signed TRIPS j investigators for trials in US • Change in India’s IP rules • No. of blockbuster drugs • New competitors in coming off patent generic market1978 2000 2004 1984 1994