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Biocon: From Local to Global

Ashish Hajela, Shad Shahid, & Mohammad Akbar
Indian Institute of Management, Lucknow, India

Key issue/decisions: The key issue is Biocon’s strategy to emerge as a global biotechnology company. In its effort to find a global footprint, the case analyzes Biocon’s balancing the strategic decisions between generics business versus innovative drug development, short term cash flows versus long term growth, expansion versus becoming a takeover target, and retaining a leadership position in India versus entering the overseas market.

Company: Biocon started as a joint venture in 1978 and became one of India’s largest, fully integrated biopharmaceutical enterprises, focused in healthcare.

Technology: Biocon patented its fermentation technology called Plafractor, used for producing enzymes and pharmaceuticals for Indian and foreign markets. Biocon has sought to use its capability as India’s biggest producer of insulin and other cell based formulations for establishing alliances with multinational companies, as well as entering overseas markets.

Geography: India, global

Keywords: Biotechnology, globalization, strategy, alliances