Submitted By: Sitaram Paul Sonali Ghosh Manish kr singh Satvik Akangsha Sharafat

CONTENTS
           

Global Biotech industry CEO Kiran M shaw Companys overview & background Companys mission History & milestones Biocon & its subsidiary Product & service revenue analysis Competitor analysis SWOT analysis BCG matrix Conclusion

Global biotech industry

1973 Cohen and Boyer perform the first successful recombinant DNA experiment, using bacterial genes 1975 Method for producing monoclonal antibodies developed by Kohler and Milstein. 1980 - Modern biotech is characterized by recombinant DNA technology - The prokaryote model is used to produce synthetic insulin and other medicine, in human form 1982 Humulin is the first biotech drug to be approved by the Food and Drug Administration. 2002 - Rice is the first crop to have its genome decoded.

 2003 GloFish, the first biotech pet, hits the North American market. Specially bred to detect water pollutants. 2004 November - Korean researchers treat spinal cord injury by transplanting multipotent adult stem cells from an umbilical cord blood. December A team of researchers at the University of Paris develops a method to produce large number of red blood cells from hematopoietic stem cells, creating an environment that mimics the conditions of bone marrow. 2005 January Researchers at the University of Wisconsin Madison differentiate human blastocyst stem cells into neural stem cells, and finally into spinal motor neuron cells

CEO KIRAN M SHAW

1953 born in Bangalore, India 1973 B.Sc in Zoology 1974 Master brewer from Ballarat university in Melbourne 1975-1977 Trainee brewer in Carlton & United beverages First Indian woman brew master 1978 Joined Biocon Biochemicals limited, Ireland 1978 - Founded BIOCON India

Journey continues ..
Collaborated with irish firm Biocon international Kiran owned 70% and Biocon international 30% of equity Started BIOCON India from her garage with initial capital of $200 Started extracting enzyme (papain) from papaya & isinglass (fish moss) Export to irish firm Application for loans was turned down by banks on two counts biotechnology was then a new word and the company lacked assets 2004 Biocon went for an IPO which valued the company at $1.1 billion

Why entrepreneur???...
There are no short cuts to success and there is no substitute for hard work Strong determination Confident Willingness to take risk Talented team Spirit of adventure Don t afraid to fail

Present status of the biotech industry in India

In 2009-10, the growth was 17 percent, with the biopharma sector - 12 percent, bioagri - 37 percent, bioservices sector - by 28 percent, and bioindustrial sector- 18 percent. In the global biotech market, Indian share about- 2%. The consumption of biotech products in India was $ 4270 mn in 2010 . The human and animal products segment of the industry alone, the vaccines market alone is valued at US$ 230 million and is growing at 20 per cent. Setting up of The CENTRAL DEPARTMENT OF BIOTECHNOLOGY in 1985.by the Government. 15 Indian companies manufacturing 20 DNA recombinant products in domestic markets. More than half of the global requirement for hepatitis-B vaccine is supplied by a handful of Indian biotech companies.

Biocon Background
Biocon was founded in November 29th 1978 Focus from enzyme manufacturing to developments of biopharmaceuticals In 1989, Biocon became the first Indian biotech company to receive US funding for proprietary technologies solid substrate fermentation technology led to a threefold expansion by 1996 and Biocon entered the biopharmaceuticals and statins segments. 1st in India & 20th in the world in terms of revenue & market capitalization Joint venture between Leslie Auchincloss and Kiran Majumdar

Mission : to be an integrated biotechnology

enterprise of global distinction
Essential to this mission is excellence in

 Intellectual asset creation through discovery, research and development  State-of-the-art manufacturing capabilities  Internationally benchmarked quality and regulatory systems  New medical insight through disease specific clinical research  Customer relationship through outstanding products and services  Human resource development through training, mentoring and empowering  Management of research and business partnership

HISTORY & MILESTONES

29th November, 1978 Biocon s founding day 1979 1st Indian company to export microbial enzymes to USA & Europe 1993 1st company to receive ISO-9001 1994 - Syngene, a Biocon subsidiary, is India's first custom research company in drug discovery 1996 success got 3 fold expansion. Biocon's proprietary bioreactor, the PlaFractor, receives a US patent 2000 establishes Clinigene (clinical research organization) 2002 Clinigen labs first to receive CAP accreditation 2003 first to develop artificial human insulin 2006 inaugurates Biocon Biopharmaceuticals at Biocon park 2010 partnership with Malaysia s BiotechCorp 2011 - Biocon divests its stake in its German subsidiary, AxiCorp GmbH, to the existing group of promoter shareholders

BIOCON AND ITS SUBSIDIARIES

BIOCON LIMITED
Syngene International Ltd (100%) NeoBiocon FZ LLC (50%) Clinigene International ltd (100%) Biocon Research ltd (100%) Biocon SDN. BHD (100%) Biocon BioPharmaceuticals Pvt ltd (100%)

Biocon SA (100%)

Syngene
Pre clinical discovery

Chemistry - Medicinal chemistry - Custom synthesis - Process R & D - Clinical supply Manufacture - Analytical Services - Polymer Chemistry Biology - Molecular Biology - Protein Sciences - Cell line services - Assay services - eADMET & PK studies - Biologics

Clinigene
Clinical Research
- Regulatory affairs - Early phase Development - Medical Monitoring - Clinical Data Management

Biocon
Commercialization
- Research Collaboration - Product Development - Process Development - Manufacturing - Regulatory Filing - Marketing - Custom Manufacturing - Licensing

- Bioanalytical Research Laboratory - Central Laboratory - Integrated eClinical Services

PRODUCTS AND SERVICES

Active Pharmaceutical Ingredients (APIs)
 Cardiovascular Agents: Rosuvastatin, Atorvastatin, Provastatin  Anti-obesity agents: Orlistat  Ophthalmics: Latanoprost & Travoprost  Peptides: Atosiban & Exenatode  Anti-diabetic Agents: Acarbose & Plogitazon

Biological
 Human Insulin : regular Insulin & Insulin NPH  Monoclonal Antibodies  Streptokinase

Revenue (in crores)

2005 Sales Bio pharmac eutical Enzyme Research & Technical Total Other Income Revenue 557 90 66 713 15 728 603 85 100 788 5 793 728 95 163 986 4 990 787 46 220 1054 36 1090 1372 237 1609 64 1673 2036 332 2368 37 2405 2298 473 2771 43 2814 2006 2007 2008 2009 2010 2011

BIOCON REVENUE (in crores)

3000 2500 2000 1500 990 1000 500 0 2005 2006 2007 2008 2009 2010 2011 728 793 1090 2405 2814

1637

Biocon s income expressed as a percentage of Biocon s total

4.8% 4.9% 5.6%

Biopharmaceuticals Enzyme Research Service Others

84.6%

Profit Before tax

Profit Before tax ( Rs. in Cr)
500 400 300 200 100 0 2005 2006 2007 2005 Profit Before tax (Rs. in Cr) 216 2008 2006 205 2007 217 2009 2008 238 2010 2009 260 2011 2010 352 2011 447 216 205 217 238 260 447 352

Net Profit
Net Profit (Rs. In cr.)
500 450 400 350 300 250 200 150 100 50 0 Net Profit (Rs. In cr.)

2005 198

2006 174

2007 200

2008 464

2009 93

2010 293

2011 368

Net Profit (Rs. In cr.)

SUMMARY OF BALANCE SHEET

Rs. In cr Current Assets Current Liabilitie s Current ratio 2005 2006 888 2007 1069 2008 1474 2009 1511 2010 1758 2011 2039 741

249

261

275

300

437

580

1100

2.9

3.4

3.8

4.9

3.45

3.03

1.85

So Biocon has almost 3.33 crore of asset for 1 crore of liability, which shows good signal for investors and ability to diversify

SUMMARY OF CASH FLOW

Rs. In cr Net cash provided by operating activities Net cash used for investing activities Cash flows from financing activities Net Change in Cash and Cash Equivalents Foreign Currency Translation Reserve Cash & cash equivalent at the beginning of the year Cash & cash equivalent at the end of the year 2007 155 (199) 51 7 2 2008 318 (340) 23 1 9 2009 95 (232) 137 2 10 2010 441 (226) (85) 129 (1) 12 2011 809 (242) (262) 305 6 140

10

12

140

451

Competitors

SWOT Analysis
Strength:
 Low Price : Insugen price of $ 2.5 per 10 ml  Debt free & cash rich status  Rich & expanding new drug pipeline  Biocon s R&D expertise  Biocon has a patent fermentation process

Weakness:
 Statin (which lower the amount of cholesterol in blood) dependent  don t have patent for statin molecules  Limited clientele  Revenue profile is highly concentrated

SWOT ANALYSIS
Opportunity:
 Market potential : Statins market likely to grow at a rate of 18% in the next year  India has the most quantity & diversity type of diabetes  Great manufacturing capabilities  Insulin injections are a painful process  Expiration of patents worldwide

Threats: Regulatory risk  Competitive threats  Raw material & fuel costs are linked to global commodity prices  Dollar depreciation rising personnel costs & increasing operational overheads on account of oil & power  Wockhardt already has launched insulin product in market so, Biocon has to face serious competition

Earning per share

Earning per share
50 40 30 20 10 0 2005 2006 2007 2008 2009 2010 2011 18 13 16 6 12 23 Earning per share 44

The earning per share of BIOCON is almost stable giving around Rs. 19. This is good signal for going long and opportunity for investor

Analysis with competitor (earning per share)

Earning per shares (Rs. In Cr.)
70 60 50 40 30 20 10 0 Biocon Sun Pharma Cipla Wockhardt 19 10 32 Earning per shares (Rs. In Cr.) 60

Analysis with competitors (Sales and net profit)

6000 5128 5000 4000 3000 2000 1000 256 0 Biocon Sun pharma Cipla Wockhardt 1470 1728 1128 728 473 3920

Sales Turnover (In cr.) Net Profit (Rs. In Cr.)

BCG matrix ..

BIOCON can be put in the BCG STARS as the company had very high growth opportunities and high market share.

Conclusion
By analyzing financial data and strength of BIOCON we can conclude that financial of biocon is good and fundamental are showing a bright future for this company. Analysis also shows an upward trend in market value of this company. Investors can reap good profit from this company since in coming future pharmaceutical sector will be seeing tremendous changes.