Q.1: How has Biocon's strategy and positioning evolved over the years? What role does BIOMAb play in Biocon's overall strategy?

Ans:- Biocon was founded in Nov 1978, as a joint venture with Biocon Biochemical of Ireland, and was primarily an enzyme manufacturing company and exported to food processing industries in USA and Europe but CEO Dr. Mazumber-Shaw had grand designs to make Biocon an international player in the global biopharmaceutical market. To meet this goal, Biocon had to take calculated risks in evolving from enzyme production to statins to insulin until the ultimate goal of entering into the proprietary drug.

Biocon, fresh off a hugely successful IPO in March 2004, was perfectly positioned to step into the final level of evolution in becoming a fully integrated biotech company and creation of proprietary drugs. The cancer drug BIOMAb is the key to successfully entering into this market. Biocon licensed the cancer drug from the Cuban company CIMAB to develop and market the molecule on the Indian subcontinent.

BIOMAb was a perfect entry product for Biocon for several reasons. First, it allowed Biocon to learn about mammalian technology, which is the future of the biotech industry. Secondly it would give Biocon a chance to develop a new market and build new research and marketing capabilities, essential for ensuring the long term success of the company. Thirdly, BIOMAb afforded Biocon the positive brand positioning of being the first Indian company to launch a proprietary drug in India. And most importantly, BIOMAb provided Biocon with the opportunity to enter into the proprietary drug area with an immediate win. Simply put, BIOMAb worked. Ultimately, BIOMAb gives Biocon the ability to realize Dr. Mazumber-Shaw’s goal of becoming a globally recognized player in the biotech industry. However, it must be stated that the ability to capitalize on the BIOMAb opportunity is a product of Biocon’s calculated strategy to gradually increase its capabilities and Breadth of offerings through careful, yet systematic, risks.