Biocon who have successfully done the phase 2 trial of their new Cancer drug – Biomab are the first Indian company who have got break through success in the field of Head and neck Cancer drug. They still had to get their phase 3 trial done (which looks like a market norm, though not a legal requirement). Erbitux which was developed by Imclone Systems in US had granted license to Merck to distribute the drug to India. Erbitux had already done 3 phase trial and they have got approval from European and US Drug agencies. They still not have received the approval from India drug authority (DGCI). But the same was expected soon. 1) Launch of BIOMAb
Sensing the arrival of Erbitux into the Indian market some of members of Biocon management wanted a fast launch of BioMab. Cancer is a very critical illness and any deficiency in the medicine can be fatal for individuals. So ideally Biocon should first go for 3rd phase trial, check the competency of the product and then go for launch. They should not look for a short term advantage of being first entrant. Since of their product face any rejection (or have any drawback), it can be devastating on the reputation of the company. This can dampen the company’s image which can badly go against them. So it would be a better option for them to complete the 3rd phase trial of the product and then go ahead. Parallely even their marketing strategy was not ready for the product so it made no sense for early launch. Competitors of Biocon would even use the absence of 3rd phase trial against them.
2) Current and future opportunity for BioMab
Once the 3rd phase trial of Biomab is successfully completed and they get the approval from DGCI, Biocon can start targeting the marketing their drug to the head and neck cancer patients in India. As per the current market estimates, the number of potential customers in India based on affordability were about 1900 patients. But by...