Assuming Biocon receives Essay Sample
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Assuming Biocon receives Essay Sample
1. Assuming Biocon receives approval for BioMab, should it launch the drug immediately or conduct phase 3 trials before launch? Elaborate on the various elements of your action plan.
2. How big is the current and future market opportunity in BIOMAb? The current market opportunity of BIOMAb is limited but the future is going to be bigger. In 2004, the 5-year prevalence (number of people diagnosed with cancer and still alive after 5 years) was 375,000 and the incidence (new cases per year) was 132,000 for head and neck cancer in India. However, only 1% percent of the Indian population can afford the drug. According to Biocon estimates in 2007, the market potential for BIOMAb in head and neck cancer based on incidence and % affordability was 1,900 patients new cases per year. The market opportunity will be bigger in India because of the country’s improving economy (9% yearly) and increasing population (1.4% population growth rate). BIOMAb can also be marketed abroad and the international incidence is at least 7-8X that in India. BIOMAb may also be approved for other indications such as for colorectal cancer. The incidence rate for colorectal cancer in India in 2004 was 33,000 but internationally it was 1,023,000 and the 5-yr prevalence 2,830,000. However, BIOMAb has a competitor in the international arena, Erbitux, which had been approved by US FDA for colorectal cancer in 2004 and introduced in India in April 2006 for colorectal cancer.
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 buyers for BIOMAb are the oncology doctors who will make the decisions and recommendations to their patients as to what treatment their patients will receive. The decision making unit is……. The benefits that each member of the decision making unit seeks include BIOMAb effectiveness in the treatment of cancer, affordability (cost)
4. Develop a detailed launch plan for BIOMAb. Provide your rationale for the product portfolio, pricing, channel, and communications decisions. BIOMAb must be launched immediately along with a suite of generic cancer medications. This will give Biocon the first mover advantage for BIOMAb. The offering of generic drugs will help the sales representative of BIOMAb get more meetings and interactions with the oncologists. The results of the phase 2 trials were extremely compelling -100% responded to BIOMAb plus chemotherapy and radiation vs 70% for chemo and radiation only.
Even if the competitor use the fact that BIOMAb has not completed phase 3 trials, the strength of the phase 2 results should be enough to convince the oncologists in India to use BIOMAb. Price: The price of the competitor monoclonal antibody is beyond the reach of a majority of cancer patients because of their prohibitive cost. Thus, the price of BIOMAb should be lower (20 – 40 per cent less than the similar drug available in the country). This price must be relatively affordable yet meets Biocon’s corporate revenue objectives. Channel: BIOMAb should be directly sold to doctors. The expected shipment volumes are small so it can easily be handled by Biocon. There is no need fo traditional pharmaceutical channel as the product must be refrigerated and handled properly.
It is best to ship he product overnight to oncologists. Biocon will need the support of clearing and forwarding agents. Communication: Biocon should go directly to the oncologists and use detailing as the primary means of communicating BIOMAbs benefits. Biocon should also target patients and their families by providing support and information. This can be done using website, customer help lines, sales people and direct to consumer advertising. They should also use campaign using celebrities to reach as many patients and families as possible. The sales staff should spend time with the patient and family explaining product usage.
5. How has Biocon strategy and positioning evolved over the years? What does BIOMAb play in Biocon’s overall strategy?