Biocon Vikash presentation

7/28/2019 Biocon Vikash presentation

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BIOCON LTD: Building a biotech powerhouseFrom bottom to TOP

BY-Manoj DubeyKanishka PathakVikash ThakurVeer chhatarashalAkhilesh kumar

Shadab Alam


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Industry Outlook

The biotech industry in India is expected to showsalubrious growth rates in coming years, and is projectedto enjoy a CAGR of around 20% between FY2012 &FY2013, says RNCOS in its latest research report,

"Booming Biotech Market in India".

Future of the industry remains pleasantly buoyantdespite the lack of venture funding and stringentregulations in the country.
http://www.rncos.com/Report/IM110.htmhttp://www.rncos.com/Report/IM110.htm


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Leading Players

Name Year ofestablishment SegmentRevenue(in milliondollars)

Serum Instituteof India

1966 Bio-pharma 1870

Panacea Biotec 1984 Bio -pharma 640

Biocon ltd 1978

Bio-pharma/Bio

serivces/Bio-industrial

533.91

NicholasPiramal

1988 Bio-pharma 106.95

Novo Nordisk 1973 Bio-agri 80.07


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About BIOCON The first and largest biotech company in India, started in 1978 formulating

industrial enzymes provided by an Irish company.

Biocon retains its roots in the world markets for food and industrial enzymes.

It also has turned its fermentation technology to the manufacture of drugs,developing a pipeline of statins and winning U.S. FDA to market generic

lovastatin for cholesterol reduction. Biocon also has created contract drugdiscovery, clinical trials, genomics and chemistry research units and sistercompanies.

Biocon's Syngene unit has 150 scientists working on drug discovery, chemicalsynthesis, molecular biology.

Biocon is ranked among the top 20 global biotechnology companies (Med AdNews). Biocon is the 7th largest biotech employer in the world (Med AdNews).


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Mile Stones

1978 - Incorporated as JV-Biocon Biochemicals Ltd & Kiran Mazumdar-Shaw.

1979 - First Indian company to manufacture and export enzymes to USA and Europe.

1989 - Unilever plc. acquires Biocon Biochemicals Ltd.

1993 - Establishes Syngene International Pvt. Ltd. ,a Custom Research Company(CRC).

1996 - The commercial success of Biocon's proprietary fermentation plant leads to a 3-

fold expansion; enters biopharmaceuticals and statins. 1998 - Unilever agrees to sell its shareholding in Biocon to the Indian promoters.

Biocon becomes an independent entity

2000 - Establishes Clinigene, India's first Clinical Research Organisation (CRO).

2003First company worldwide to develop human insulin (Pichia expression system).

2004Issues IPO which valued the company at $1.1 bn.

2006 - Inaugurates Biocon Biopharmaceuticals, India's largest multi-product Biologicsfacility ; India's first anti-cancer drug, BIOMAb EGFR.

2008 - Biocon acquires 70% stake in German pharmaceutical company, AxiCorpGmbH

2009 - Biocon launches BASALOGTM - long lasting basal insulin for Type 1 & Type 2Diabetics.


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Its subsidiaries

SyngeneInternationalLtd (100%)

ClinigeneInternational

ltd (100%)

BioconBioPharmaceuticals

Pvt ltd (100%)

NeoBiocon FZLLC (50%)

Biocon SDN.BHD (100%)

Biocon SA(100%)

BioconResearch ltd

(100%)


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The Visionary

Born on 23 March 1953 in Bangalore

Post grad. Zoology from Bangalore university 1972

Master brewer from Ballarat University in Melbourne 1975

Trainee brewer in Carlton & United Beverages in 1975-77 First Indian woman brew master

Joined Biocon biochemical Ltd. Ireland in 1978

Dr. Kiran M. Shaw In 1978 founded Biocon India

After wards she never turned back and reached to the apex of BIOTECHindustry in India ,Currently she is richest women in India.


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Conti


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Products

Products

Enzymes

IndustrialFood

Feed

Biopharmaceuticals

80% turnoverStatins major. product

Clinical trialsHandled byClinegen

Focus on Phase Iand Phase IIItrials

Custom ResearchHandled by Syngene

Synthetic chemistryand MolecularBiology are towareas covered

Drug

Discovery


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Problems

In initial Stages - Financing regular operations

Approached financial institutions, but turned down, coz:

Biotechnology is a new word

No assets for company

Woman entrepreneur is a rare word Recruiting staff

Current (According to case study)-

Spread its business to research and development and drug discoveryareas


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SWOT ANALYSIS

Strength: Low Price : Insugen price of $ 2.5 per 10 ml

Debt free & cash rich status

Rich & expanding new drug pipeline

Biocons R&D expertise Biocon has a patent fermentation process

Weakness: Statin (which lower the amount of cholesterol in

blood) dependentdont have patent for statin molecules

Limited clientele

Revenue profile is highly concentrated


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Conti

Opportunity:Market potential : Statins market likely to grow at a rate

of 20% in the next yearIndia has the most quantity & diversity type of diabetesGreat manufacturing capabilitiesInsulin injections are a painful process

Expiration of patents worldwide

Threats:-Regulatory riskCompetitive threats

Raw material & fuel costs are linked to global commoditypricesDollar depreciation rising personnel costs & increasing

operational overheads on account of oil & powerWockhardt already has launched insulin product in

market so, Biocon has to face serious competition


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Market share


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Financials


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Current Ratio


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Asset turnover ratio

0

0.2

0.4

0.6

0.8

1

1.2

1.4

2007 2008 2009 2010 2011

Asset Turnover Ratio

Asset Turnover Ratio


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Net Profit Margin

0

5

10

15

20

25

30

35

40

45

50

2007 2008 2009 2010 2011

Net Profit Margin(%)

Net Profit Margin(%)


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Earning per share


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From the ratio analysis we can say that the firmhas a favorable financial status to spread its

business to research and development and drugdiscovery areas


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BCG ANALYSIS

BIOCON can be put in the BCG STARS as the company had veryhigh growth opportunities and high market share.


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Strategies

No commodity production in beginning due to lack ofinfrastructure Diversification rather than expansion Formed Helix (antibiotic prod.) Formed Syngene, Clinigene (R&D in fermentation)

Biocon Quest to produce drugs in mass. Strategic alliances with 20 companies around globe. Eg

AXICORP , DEAKIN UNIVERSITY Fully integrated business model

Enzymes produced & sold as industrial intermediaries Customer (staying with buyers processing line helping them

obtain desired result from the enzyme) Created an image of a reliable company able to give highly

competent technical products & support


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Major Competitors

Cadila Healthcare Divi's Lab

Lupin Ltd.

Glenmark Pharma

GlaxoSmithKline Phar Aurobindo Pharma

Dr. Reddy's Labs

Fortis Healthcare Sun Pharma.

Cipla


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CSR

Arogya Raksha Yojana (ARY) HealthcareInitiatives

Primary Health Education & Implementation

Infrastructure: constructing school buildings

(including a performance stage, flooring,classrooms),creches, sanitary facilities and watersupply connections.

Under phase I of the sanitation program, 700

toilets have been built in Huskur.


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Current Status India's Biocon expects to launch psoriasis drug by end FY13MUMBAI, July 26 - Biocon, India's top listed biotechnology company, expects to

launch Itolizumab, a drug to treat psoriasis, by end of the current fiscal year India's Biocon Q1 net up 12.5 pctJuly 26 - Three months ended June 30 , Net Profit 788.0 vs 700.5 Total Income5,926.0 vs 4,635.2 Results are consolidated. NOTE: Biocon Ltd is India's top-listed

biotechnology company. Ampio signs deal with Biocon unit on sexual dysfunction drugREUTERS - Ampio Pharmaceuticals Inc signed a deal with Syngene, a unit of

Bangalore-based Biocon Ltd , to produce its experimental drug for prematureejaculation and erectile dysfunction, sending its shares up 23 percent. Biocon to develop nutrition products for IndiaREUTERS - Abbott Laboratories has partnered Indian biotechnology companyBiocon Ltd to develop nutrition products for India, as the U.S. drugmaker steps upits push to tap a potentially big market. Biocon Q4 beats forecast, shares rise

An expected licencing income helped Biocon, India's top-listed biotechnologycompany, post better-than-expected quarterly profit and lift its shares more than 4percent, but it said the global business outlook remained uncertain. Pfizer scraps insulin deal with BioconPfizer Inc , the world's largest drugmaker, has scrapped a deal to sell insulinproducts made by Biocon Ltd , leaving India's biggest biotechnology company

without a partner to sell the drugs in key markets such as the United States.
http://in.reuters.com/article/2012/07/26/biocon-psoriasis-drug-idINL4E8IQ19720120726?type=companyNewshttp://in.reuters.com/article/2012/07/26/biocon-results-idINL4E8IQ11Z20120726?type=companyNewshttp://in.reuters.com/article/2012/07/02/ampiopharmaceuticals-zertane-syngene-bio-idINDEE8610CZ20120702?type=companyNewshttp://in.reuters.com/article/2012/05/03/abbott-biocon-partnership-idINDEE84204A20120503?type=companyNewshttp://in.reuters.com/article/2012/04/27/india-biocon-results-idINDEE83Q05C20120427?type=companyNewshttp://in.reuters.com/article/2012/03/13/pfizer-biocon-idINDEE82C01K20120313?type=companyNewshttp://in.reuters.com/article/2012/03/13/pfizer-biocon-idINDEE82C01K20120313?type=companyNewshttp://in.reuters.com/article/2012/03/13/pfizer-biocon-idINDEE82C01K20120313?type=companyNewshttp://in.reuters.com/article/2012/04/27/india-biocon-results-idINDEE83Q05C20120427?type=companyNewshttp://in.reuters.com/article/2012/04/27/india-biocon-results-idINDEE83Q05C20120427?type=companyNewshttp://in.reuters.com/article/2012/05/03/abbott-biocon-partnership-idINDEE84204A20120503?type=companyNewshttp://in.reuters.com/article/2012/05/03/abbott-biocon-partnership-idINDEE84204A20120503?type=companyNewshttp://in.reuters.com/article/2012/07/02/ampiopharmaceuticals-zertane-syngene-bio-idINDEE8610CZ20120702?type=companyNewshttp://in.reuters.com/article/2012/07/02/ampiopharmaceuticals-zertane-syngene-bio-idINDEE8610CZ20120702?type=companyNewshttp://in.reuters.com/article/2012/07/02/ampiopharmaceuticals-zertane-syngene-bio-idINDEE8610CZ20120702?type=companyNewshttp://in.reuters.com/article/2012/07/26/biocon-results-idINL4E8IQ11Z20120726?type=companyNewshttp://in.reuters.com/article/2012/07/26/biocon-results-idINL4E8IQ11Z20120726?type=companyNewshttp://in.reuters.com/article/2012/07/26/biocon-results-idINL4E8IQ11Z20120726?type=companyNewshttp://in.reuters.com/article/2012/07/26/biocon-psoriasis-drug-idINL4E8IQ19720120726?type=companyNewshttp://in.reuters.com/article/2012/07/26/biocon-psoriasis-drug-idINL4E8IQ19720120726?type=companyNews


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Why Dr. K.M. Shaw is an Entrepreneur No man was willing to work for her.

Accountant left at the first sign ofanother job.

DETERMINATION

She started her Business in relativelynew and innovative field.

When bank refused loans to Kiran, she

went against all odds as a belief thatwomen can be an entrepreneur.

CONFIDENCE

Focused on R&D and innovativestrategy to produce new products.

Made her employees to think

innovative

INNOVATION

Company had no assets. Biotechnology was a new concept to

Indians. Woman entrepreneur was a new word.

RISK TAKER


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THANK YOU

Biocon Vikash presentation

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