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Case: BIOCON LTD. Building a biotech powerhouse
Reasons for success of Biocon Ltd. in the past:

Sequential growth strategy: Biocon added businesses like enzymes, biopharmaceuticals, research services and drug development that were interlinked. Consolidation of core skills: Biocon had consolidated its core skills in enzymes (known to be the building blocks of biotech), established a footprint in biopharmaceuticals (which helped generate regular cash flow) and partnered with global firms (serving as launching pads for drug development). Biocon's Integrated Business Model: Biocon, along with its subsidiaries – Syngene and Clinigene, handles the entire lifecycle of a drug; right from discovery to commercialization (it has least expertise in commercialization). o Discovery Syngene Molecular Biology Synthetic Chemistry Biocon Microbial Fermentation Biodiversity Bioprocessing o Development Clinigene Clinical Research Clinical Development Clinical Trials o Commercialization Biocon Generics, main contributor to revenue: Bulk of their revenues came from generics. A generic drug typically cost 20 per cent to 80 per cent less because the product was not burdened with legacy expenses of research, development, clinical trials and marketing. Patent of Plafactor: Biocon secured a U.S. patent for a reactor it developed, known as plafactor. The patent gave the company exclusive global rights to use and license the technology for the manufacture of drugs involving genetically engineered microorganisms in a solid-state fermenter. Diversified and Specialized: From the company’s origins making enzymes for the breweries industry, Biocon had expanded and diversified into related fields during the next two decades. Biocon specialized in four broad areas: enzymes, biopharmaceuticals, custom research and clinical research.

Fermentation offered competitive advantage: The importance of enzymes for Biocon lay in the fact that the business was a springboard for one of the company’s...
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