Biocon
Case Assignment Questions
1. Assuming Biocon receives approval for BIOMAb, should it launch the drug immediately or conduct phase 3 trials before launch? Elaborate the various elements of your action plan.
If Biocon receives approval for BIOMAb, the management team will need to carefully consider what the best course of action is moving forward. If the company elects to launch the drug immediately, they will be able to have the first mover advantage, reaching the market before their closest competitor, Erbitux. BIOMAb will also be able to put themselves on the map as they would be the first ever, proprietary drug developed and marked by an Indian firm for Indian patients. The Indian regulatory authorities may also cause a
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The success of CIMAB’s other partner, YM Bioscience, is not guaranteed and there is no reason that Biocon cannot unseat them in the long run. If Biocon is able to achieve this, along with the Phase 3 trials, the worldwide Head and Cancer would be open to the company, to say nothing for the “off label” prescriptions. Given the worldwide population growth, economic expansion, and aging populations, the long-term market for BIOMAb is practically limitless.
3. Who is the buyer for BIOMAb? What is the decision making unit in this case? What are the benefits that each member of the decision making unit seeks from BIOMAb?
The buyer for BIOMAb is (are) the income provider(s) of the family, whose member (s) has (have) been affected by head and neck cancer or another indication, since off-label usage is very common in India. The structure of India’s health care system is such that it is estimated that 95% of BIOMAb’s patients (end users) are going to be self-paying. Therefore, the cost of treatment will be transferred to the earning member of the family.
Adult patients have the right to make treatment decisions for themselves, so patients and their families are the decision makers for BIOMAb in this case. As the case states, the oncology doctors are the main influencers, as
Phase 3 clinical studies - Intended to gather the additional information about effectiveness and safety that is needed to evaluate the overall benefit-risk relationship of the drug.
Ranbaxy has become international and thus needs to concentrate more on generics and growth in US and UK; the joint venture with Eli Lilly no longer seems to be central to Ranbaxy’s current goals. With major changes in India’s regulation and patent protection, Eli Lilly can now enter the Indian market independently and soon would enjoy product patent protection.
Assist the patent and family, as appropriate, in coming to a consensus regarding the options that best meet the patient’s goal for care.
Please type a statement acknowledging that you understand that this assignment will make up a portion of your Exam 4 grade, that you will complete it independently, and you will not plagiarize or copy from other students, textbooks, presentation materials, or any other source. Any student who plagiarizes or works with another student will receive a zero for their grade.
3. No new drugs are to be available in the market for this indication in the next 5 years so it makes the product very lucrative.
For many types of cancers, we have been using the same base drug (first line treatment) for ten years or even longer. As companies find new drugs to fight the cancers, they hope that it will be the miracle drug that will eradicate the cancer, but it usually isn’t. When they reach this conclusion, instead of returning to the chalkboard and continuing to work to improve the drug, they put the drug on the market as is, and hope it will achieve something. Not only are they putting these drugs on the market but they put price tags on them that would bankrupt anyone without some sort of third party payer. The combination of all of these drugs make up what doctors
2. As a member of Interco’s board, are you persuaded by the premiums paid analysis (Exhibit 10) and the comparable transactions analysis (Exhibit 11)? Why?
a. What risk-free rate and risk premium did you use to calculate the cost of equity?
Another issue is too much power is given to scientists in decision-making of candidate drugs. Also there were inadequacies and lack of communication between marketing and research. Merck’s marketing and research needed to realize that the making of the drug is not only the most important part in increasing sales, but it also included a strong advertising campaign that will satisfy the needs of the customers.
There are several rewards to consider with expansion of Biocon. Currently in India, there is a growing market for contract research organization and the growth of Biocon falls right within this opportunity. The growth is expected to last for more than few years with a rate that looks promising. Clinigene is expected to reap revenues much higher than the current Biocon and Syngene combined (Kalegaonkar A., Nov 4, 2008). It will take clinical studies to a higher level with better options in terms of drug manufacturing. With other countries ready to outsource the service of clinical studies, Clinigene’s future looks bright.
In 1998, Biopure Corporation is one of the three legitimate contenders in the emerging field of “blood substitutes”. Biopure has invested $200M on the R&D on blood substitutes in the past with its primary goal being the development of a human blood substitute ( Hemopure) but Its entry into animal market (Oxyglobin) had been some
The key issue is to determine when Oxyglobin should be introduced to the market without jeopardizing Hemopure’s potential and how it should be marketed.
The biotech firm Amgen Inc. gives much attention and time to the planning process. Because the outcomes for a company like Amgen are often very unsure and many employees are quite sceptical about the use of such a planning, the main issue can be described as follows:
Introduction AstraZeneca PLC (AstraZeneca, AZN:NYSE, AZN:LSE) is one of the largest pharmaceutical companies in the world. It was formed in 1999 from the merger of Sweden’s Astra AB and UK’s Zeneca Group plc. Core Activities AstraZeneca is engaged in the discovery, development, manufacturing and marketing of prescription pharmaceuticals and biological products for important areas of healthcare: Cardiovascular, Gastrointestinal, Infection, Neuroscience, Oncology, and Respiratory and Inflammation. One of the key benefits of the merger between Astra and Zeneca is seen as their portfolio of new products in development: AstraZeneca call this their 'product pipeline'.
Unlike Gilead that has only one product in its Oncology line, Bristol-Myers Squibb presently have four different drugs namely: Erbitux –an epidermal growth factor receptor (EGFR) antagonist for the treatment of Head & Neck cancer and Colorectal cancer,(2) Opdivo (nivolumab) for the treatment of unresectable or metastic melanoma and lungs cancer, (3) Syrcel( dasatinb) for the treatment of newly diagnosed adult with Philadelphia chromosome –positive (ph+) chronic myeloid leukemia and (4) Yervoy (ipilimumob) for the treatment of melanoma a type of skin cancer that spread and as such cannot be remove by surgery. Like Seattle Genetics, the company products use either Antibody-drug Conjugate (ADC) though in a different version by linking potent cytotoxic to monoclonal antibodies targeted to specific tumor cells or immune-oncology, an innovative technology that unlocks the body own immune system to fight against cancerous cells. It also expanded its focus to Nolch inhibitor (used in blocking powerful pathway that promotes tumor cell survival for certain other types of cancer. (Bristol-Myer Squibb, 2014) Because the technology is similar but used differently, BMS would be considered a close competitor who currently has the advantage of having four targeted specific drugs and 12 other oncology and immune-oncology in various trial phases.