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Moving up the Value Chain – The Biocon Way!
Kiran Mazumdar Shaw, Founder and CMD, Biocon Biocon's business model reflects company’s strategic move up the value chain, and the company plans to leverage its five business verticals and touch USD 1 billion by 2018.

Biocon as Asia's leading biopharmaceutical company is committed to affordable innovation to deliver high quality, reliable Biopharmaceuticals for patients and healthcare systems across the globe. With on going global challenges the global pharma market is experiencing a slowdown growing at a single digit expected to reach a size of over USD 1 trillion by 2016. This growth will be largely led by the emerging markets and Generics & Biosimilars.

Biocon's business strategy has been well aligned with these global trends and is focused on carving a significant share from the global Biosimilars market which is estimated to grow fivefold to attain a size of USD 5 billion by 2016. Biocon’s evolution so far has been led by its move up the value chain both in products and services and geographies. The company is committed to deliver sustainable and long-term value for patients, partners, and healthcare systems across the globe.

The Company's business model reflects company's strategic move up the value chain and has evolved over the years to unlock greater value in this unfolding bio-economy. Its five powerful growth accelerators Small Molecules; Branded Formulations; Biosimilars; Novel Molecules and Integrated Research Services are based on its differentiated competencies in discovery, development and commercialisation of biopharmaceuticals. Leveraging these five business verticals with a focus on emerging markets is integral to Biocon’s long-term plan of achieving revenues of USD 1 billion by FY 2018.

The increasing aging population, disease incidence, drying up of new molecule pipelines have led to the mounting shift towards generics, biosimilars and research partnerships. The large patient population, cost arbitrage in terms of innovation and manufacturing, availability of talent and the paying capacity of patients has tilted the scales towards the emerging markets leading to a surge in co-development and marketing partnerships.

Biocon's Small Molecules strategy, driven by Active Pharmaceutical Ingredients (APIs) business, has delivered consistent growth leveraging core competencies in fermentation technology. Investments in technology platforms to create a differentiated APIs portfolio are also showing positive results. Biocon now seeks to enter the next phase of growth by front ending this business through dossiers, ANDAs and 505 (b)(2) filings.

Branded Formulations business in India with a focus on the chronic disease segment, is a strong growth driver for the company. It is represented by over 80 brands spread across seven therapeutic segments: Diabetology, Oncotherapeutics, Nephrology, Cardiology, Immunotherapy, Comprehensive Care and Bio products. Its key brands are Insugen, Basalog, Abraxane, BioMAb EGFR, Statix and Erypro and it has several other products in the top five in their segment.

Biocon is the fastest growing Indian insulin company and its brand INSUGEN®, ranked No 3 in the 40 IU insulin space is the leading Indian Insulin brand. Basalog, an insulin analog with over 85 per cent market share is the No 1 brand in the vials segment.

Building on its leadership in Insulins in the Indian market, Biocon has started unlocking value in other emerging markets with Recombinant Human Insulin (rh- Insulin), and Insulin Analogs, the key products from its Biosimilars portfolio. The Company’s Biosimilar Insulin is currently available in nearly 40 countries. The company is well positioned to carve out a sizeable and profitable share of the USD 17 billion global insulins market in the years ahead.

Additionally the Company’s strong Biosimilars portfolio in collaboration with Mylan focuses on MAb’s that addresses a market opportunity of over USD 33 billion.

Biocon's Novel pipeline with several high value research assets in Diabetes and autoimmune diseases is also rapidly advancing into the clinic. The most advanced programmes are T1h (Itolizumab) for psoriasis, and IN-105 (oral insulin).While itolizumab is awaiting marketing authorisation from DCGI for the launch in India, Oral insulin is progressing fast for redesigned global phase 2 clinical studies.

In the Integrated Research Services segment, Biocon, through Syngene and Clinigene, has built remarkable capabilities to offer integrated discovery and development services for both small and large molecules.

Leveraging India's high quality scientific talent pool and sophisticated world class infrastructure at Biocon Park (the country’s largest biotech campus), Syngene and Clinigene have been consistently engaged in creating value for its clients through differentiated end to end offering.

True values of the company can be realised only when the core competencies complement the long-term growth strategy. Biocon’s future strong drivers represent risk balanced strategy, underpinned by agile collaborative networks, a robust pipeline and a timely 'emerging markets' orientation, which presents a win-win situation for the company.

As India's largest Biopharma company, Biocon will continue to tread the path towards its mission of delivering affordable drugs for chronic diseases in global markets, through strategic research and marketing partnerships in emerging markets.
In the coming year we will continue to focus on expanding our footprint in several other emerging markets in Asia, Middle East North Africa, LATAM and Eastern Europe.

2013 will be an exciting year for the company as Biocon prepares to introduce its’ second novel molecule, itolizumab – an anti CD6 monoclonal antibody for psoriasis in India. This will hugely benefit the patients and will be an important milestone for Biocon.