Problem Statement:

1. Should the company move on to Phase-3 testing or launch the product right after
receiving DGCI approval?
2. How should the product be
1. Price- $1000 vs $4000 (Approx)
2. Product- Generics first vs BIOMAb first vs Simultaneous
3. Channel- Pharmacies vs Direct to doctor
4. Communication Strategies- Detailing vs Information based sales campaign
Analysis:
Launching immediately
ADVANTAGES
1. First mover advantage
2. 100% response for chemotherapy and radiotherapy in phase 2 trials, therefore
sufficient to get DCGI approval.
3. Can become the first ever Indian company to launch a proprietary drug
DISADVANTAGES
1. The competitor Erbitux, which has proven phase 3 results, poses credibility risk
for BIOMAb
2. Lack of prior experience in selling oncology drugs

Launching group of cancer generic first and continue Phase 3 trials for BIOMAb
ADVANTAGES
1. Phase 3 results of BIOMAb will be available
2. Generics will help the sales representative get more face time with the doctor
3. It will help to generate a revenue base which will support growth for BIOMAb
DISADVANTAGES
1. Losing first mover advantage
2. Will face tough competition from competitors like Erbitux

zzzzzzzzzz
ADVANTAGES
1) Time to work on other generic Drugs
2) understand the market in this time and can market well
3) Get more face time with doctors and doctors wont be sceptical
DISADVANTAGES
1) Increasing the competition by delaying the launch though phase 2 trials are 100 %
success
2) Biocon may lose the opportunity to become the first ever Indian company to launch a
proprietary drug

Recommendation:
As per the analysis of the case though the investment in the phase 3 trials would be
greater than directly going with phase 2 trials, the cost associated with the product
failure would be tremendous. Therefore we will introduce the generic drugs first to form
the base and then the phase 3 trials. This would provide more face time with the doctors
and there would be no skepticism among the users. Added advantage of 6 time usage
and less skin irritant provides an opportunity to price the drug at a premium price. Selling
the BioMab directly to the doctors would increase the cost by only 1-2% than the
traditional channel distribution which increases the cost by 21-26.5%.
 BREAK EVEN ANALYSIS

CASE - A CASE - B CASE - C

Capital Investment 25,00,000 25,00,000 25,00,000

Price $1,000 $2,000 $2,500

Cost of Goods Sold $250 $500 $625

R&D/Dose $150 $300 $375

Marketing Expense $275 $550 $688

Profit/Dose $325 $650 $813

No. of Incidences 190000 190000 190000

No. of affordable patients 1900 1900 1900

No. of doses/Person 6 6 6

Total no. of doses/ Year 11400 11400 11400

BREAK EVEN PERIOD (Yrs) 6.75 3.37 2.70