BIOCON

GROUP NO. 5
KOMAL KERLEKAR (ROLL NO. 05)

ADITI LALA (ROLL NO. 15)

SAYAK MAZUMDAR (ROLL NO. 25)

MOHAMAD AFTAB (ROLL NO. 35)

HITESH WADHWANI (ROLL NO. 45)

YOGITA SHARMA (ROLL NO. 55)

CONTENTS
 CEO-Kiran M Shaw
 Company’s overview and background
 Company’s mission
 History and milestones
 Biocon and its subsidiary
 Product and service
 Revenue analysis
 Biocon’s comparison with its competitors
 SWOT Analysis
 Recent Acheivements
 Conclusion
CEO- KIRAN M SHAW
 1953- Born in India

 1973- B.Sc in zoology

 1975- Master brewer from Ballard University in

Melbourne

 Started from her garage with initial capital of $200.

BACKGROUND
 Biocon was founded in November 29th 1978.
 Focus from enzymes manufacturing to developments
of biopharmaceuticals.
 India’s first billion dollar biotech company.
 1st in India and 20th in the world in terms of revenue
and market capitalization.
 Joint venture between Leslie Auchincloss and Kiran
Mazumdar.
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.
 New medical insight through disease specific clinical
research.
 Customer relationship through outstanding products
and service.
 Management of research and business partnership.
HISTORY AND MILESTONES
 29th November 1978- Biocon’s founding day
 1979- 1st Indian company to export enzymes to USA
and Europe.
 1993- received ISO 9001 from RWTUV, Germany.
 1996- success got three fold expansion.
 2000- establishes Clinigene (Clinical Research Org.)
 2002- Clinigene 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.
BIOCON AND ITS SUBSIDIARIES
Syngene Clinigene
international ltd. international ltd.
(99.99%) (100%)

Biocon NioBiocon
pharmaceutical ltd. LLC
(51%) (50%)
PRODUCTS AND SERVICES
APIs
 Cardiovascular Agents: Rosuvastatin,Atorvastatin,Provastatin
 Anti-obesity Agents: Orlistat
 Ophthalmics: Latanoprost & Travoprost
Peptides: Atosiban & Exenatode
 Anti-diabetic Agents: Acarbose & Plogitazone

Biological
 Human Insulin: Regular Insulin & Insulin NPH
 Monoclonal Antibodies
 Streptokinase
FINANCE
REVENUE (in crores)
2005 2006 2007 2008 2009 2010

Sales
Bio
pharmaceu 557 603 728 787 1372 2036
tical

Enzyme 90 85 95 46 - -
Research
and 66 100 163 220 237 332
Technical

Total 713 788 986 1054 1609 2368

Other
Income 15 5 4 36 64 37

Revenue 728 793 990 1090 1673 2405

BIOCON REVENUE (IN CRORES)

3000

2500 2405

2000
1637
1500
1090
990
1000 793
728
500

0
2005 2006 2007 2008 2009 2010
BIOCON’S INCOME EXPRESSED AS A
PERCENTAGE OF BIOCON’S TOTAL

4.8 5.6
4.9

Biopharmaceuticals
Enzyme
Research Service
Others

84.6
PROFIT BEFOR TAX
Profit before tax(Rs. In Cr)

400 352
350
300 260
238
250 216 205 217
200
150
100
50
0
2005 2006 2007 2008 2009 2010
NET PROFIT
Net Profit(Rs. In cr.)

500
450
400
350
300
250
200
150
100
50
0
2005 2006 2007 2008 2009 2010
 SUMMARY OF BALANCE SHEET
(Rs. In 2005 2006 2007 2008 2009 2010
Cr.)

Current 741 888 1069 1474 1511 1758

assets

Current 249 261 275 300 437 580

liabilities

Current 2.9 3.4 3.8 4.9 3.45 3.03

ratio

So Biocon has almost 3.5 crore of asset for 1 crore of liability. Which
shows good signal for investors and ability to diversify.
BIOCON’S COMPETITORS
SWOT ANALYSIS

Strength Weakness
 Low price compare to other
 Statin (drug which lower the
competitors($2.5 per 10 ml)
amount of cholesterol in blood)
dependant
 Debt free and rich status
 Don’t have patent for Statin
molecules
 Rich and expanding pipeline

 Biocon’s R&D department

 Limited clientele

 Biocon has a patent fermentation  Revenue profile highly

process concentrated
SWOT ANALYSIS
Opportunity
 Market likely to grow at 18%
in next year
 India has most quantity and
diversity types of diabetes
 Great manufacturing
capabilities
 Biocon's target market:
i. Statin(worldwide market
of $20 billion)
ii. Insulin and Oral diabetic
product(worldwide market
of $7 billion)
Threat
 Regulatory risk
 Competitive threat
 Raw material and fuel cost are
linked to global commodity
price
 Dollar depreciation- rising
personnel cost and increasing
operational overheads on
account of oil and power
 Wockhardt already has
launched insulin product in
market so, Biocon has to face
serious competition
EARNING PER SHARE
50
45 43
40
35
30
25 EARNING PER SHARE
20 18
16
15 13 14
12
10
5
0
2005 2006 2007 2008 2009 2010

The earning per share of BIOCON is almost stable giving around Rs.
15. This is good signal for going long and opportunity for investor.
ANALYSIS WITH COMPETITORS(earning per
share)
Earning per shares(Rs. In Cr.)
70
60
60

50

40
32
30

20
15
10
10

0
Biocon Sun Pharma Cipla Wackhardt
ANALYSIS WITH COMPETITORS (sales and
net profit)
6000
5128
5000

4000 3920

3000 Sales Turnover(In Cr.)

Net Profit(Rs. In Cr.)
2000 1728
1274 1128
1000 728
473
237
0
Biocon Sun Pharma Cipla Wockhardt
 RECENT
ACHEIVEMENTS
 Biocon announces new consumer care division…
- Aug 17 2010
 Biocon net up 52% as biopharma sales surge…
- July 24 2010
 Biocon tops biotech cos…
- June 22 2010
 Biocon to supply colon drug in bulk to US firms…
- May 25 2010
 Biocon to buy Cuban partner in joint venture…
- April 5 2010
 Syngene, Endo pharma enter into pact for cancer drugs
- March 23 2010
CONCLUSION
 By analyzing financial data and strength of biocon we
can conclude that financials 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

 Investor can reap good profit form this company since

in coming future pharmaceutical sector will be seeing
tremendous changes.