Biocon: From Generics Manufacturing to Biopharmaceutical Innovation
Incorporated in 1978 as a joint venture between Biocon Biochemicals Ltd, Ireland and a company led by Ms. Kiran Mazumdar-Shaw, a young Indian entrepreneur, Biocon had long depended on revenues from the production of enzymes and generic drugs. However, competitive pressure from within the country as well as from other developing economies like China was quickly eroding price levels in these lines of business. Moreover, the 2005 adoption of WTO TRIPS in India meant that the generics-based strategy that many of India's pharma and biotech companies had followed might not be viable anymore. To continue on its current growth path, Biocon needed to consider moving from being a producer of biogenerics to becoming a global biopharmaceutical innovator. Concerned with strategy in an emerging industry, sheds light on the effects of clusters on strategy, as well as the effects of national and supranational factors on strategy. Leadership issues and low-cost strategies for diversification are also addressed.