Biocon is an integrated biopharmaceutical company incorporated in 1978. Earlier focused on fermentation, Biocon entered the biopharmaceutical market in 1996 recognizing the huge growth potential in the biopharmaceutical space. Biocon started producing generic drugs to enter the market and now were ready to launch a proprietary drug BIOMab in collaboration with the Cuban firm CIMAB. BIOMab, to be used in biological therapy treatment, had been tested for head and neck cancer and had successfully completed the phase-2 trials which showed a 100% patient response to the drug when used in conjunction with chemotherapy and radiotherapy treatments. Based on the results, the company had filed for accelerated approval and were anticipating an approval from Drug Controller General of India (DCGI) in the next few months. Problem Statement
When and how should Biocon launch BIOMab in the Indian market? Issues
Launch Decision: Whether BIOMab should be launched immediately without waiting to conduct the phase-3 trials Pricing: How should BIOMab be priced given the price of the competitor’s drug (Erbitux) Distribution Channel: Should BIOMab use the traditional pharma channel or bypass the wholesalers and retailer and adopt a “direct to doctor” strategy Marketing Communication: How should BIOMab be advertised direct to the consumer Analysis
Launch Decision: According to the Biocon team, there were three strategies that could be adopted to launch BIOMab. Immediate Launch without phase-3 trialsLaunch generic cancer drugs immediately and launch BIOMab after phase-3 trialsLaunch both BIOMab and generic cancer drugs simultaneously •First mover advantage over Erbitux
•Save time and resources on further clinical trial
•Erbitux, which will complete phase-3 trials before launch, is likely to use this to spread the message that BIOMab is still unproven • Build the reputation of Biocon as the first Indian company to have developed a proprietary drug•BIOMab will...