The Biocon’s Launching a New Cancer Drug in India Case

  The Biocon’s Launching a New Cancer Drug in India Case

1. Assuming Biocon gets approval for BIOMAb, should it launch this drug immediately or conduct phase-3 trials before launch?

There are many pros and cons for each decision. In my opinion, conducting phase-3 trials before launching is more logical due to necessity of resourcing on further clinical traits and gathering more evidence of BIOMAb’s safety and efficacy. Just because Erbitux, which has long history and already had a drug for colorectal cancer in market, is strong competitor as having phase-3 results.And Phase-3 leads to see monitoring side effects which is really crucial for launching drug especially cancer one. Moreover, BIOMAb has low sales capability.

On the other hand, expending precious time will lead to risk of having first mover advantage. According to the Phase-2 results, patients who used BIOMAb with both radio-and chemotherapy treatment have 100% responsed and it is astounding. In addition, BIOMAb has one-six of Erbitux’s chimeric which causes a skin rashness. Also Biocon has an critical advantage over Erbitux about having “Indian” orgins and after launching BIOMAb, and Biocon can be the first Indian company which devolops and markets for Indian patients.  But most probably, Erbitux would show competitive reaction. This dillema is more related with gaining more profit in short-term and vanquished or having continuous brand reputation and using second-mover advantage by correcting errors of market leader and staying in market in long-term.

1. Develop a detailed launch plan for BIOMAb. Provide your rationale for the product portfolio, pricing, channel and communication decisions?

As a product portfolio, I recommend launching generic at first so it would help to develop sales force capability and then launch to BIOMAb after phase 3 results as a marketing manager stated. It will provide strengthen the positioning of the niche product and saving on the marketing effort for treatment awareness.

As a pricing, I suggest $2500 which is much less than Erbitux’s and would appeal to low affordability. And estimated breakeven would be less than three years besides expected 30% profit.

As a channel, I am inclined to an option of focusing on direct delivery to doctors; since it helps to decrease delivery time and reducing cost.  Also, training sales reps communication skills would be more beneficial for contacting doctors.

As a communication decisions, I recommend to leverage the brand Indian’s origin and use sales reps for providing effective support and information to patients and their families. Also after attracting doctors, it would be easy to target patients due to mind of doctors.

1. What role does BIOMAb play in Biocon’s overall strategy?

Biocon is the first Indian company to produce enzymes for the food processing industry meanwhile being an expert in various fermentation processes and to export to the Europe and the United States. Then Biocon entered the biopharmaceutical industry, whose market opportunity was low, by manufacturing Statins-LDL reducing generic drug-. After being successful at technological and developing market challenge, Biocon enters the insulin market which consists of high market opportunity and demand, with having a huge capacity to supply. These achievements led Biocon to play for high stakes. BIOMAb plays a key role in Biocon’s overall strategy whether being huge success and continuance reputation or being huge fail and putting up the shutters. Because head and neck cancer is the first rank among other cancer types as in India and fourth in the World and BIOMAb tries to cure or decelerate this disease.