Swot Analysis Biocon
STRATEGIC SWOT ANALYSIS:
Strength: The strengths of Biocon are * Financial Leverage – Biocon has maintained a constant Debt/ Equity ratio between 0.11-0.12[1] in the last 5 years, which gives it a financial leverage, thus letting the share holders enjoy the earnings and also makes the organization financially strong. * Skills in Enzymes – Biocon with its recombinant DNA technology has managed to achieve a different share in the industry, its products like Insugen from recombinant human DNA, BIOMAb EGFR India’s first anti cancer drug could be some of the examples.[2] * Little or no risk associated with Business model: A well diversified business model spans the entire drug value chain through vertical integration. The subsidiary companies like Syngene, Clingene, NeoBiocon, Axi Corp GmBH, Biocon Biopharmaceuticals Private Limited. Thus has clearly diversified the risk across the globe.[3] * US FDA Approval for drugs – The US Food and Drug Administration to its drugs means that they can market and sell their drugs internationally too.[4] * Competence in Molecular Biology- Being India’s first biotechnology company to have exported its molecules to US and Europe, with its core competency in Human recombinant insulin and also its advances in oral insulin makes it the best competitor. * Low cost in Clinical research- Indian scenario makes it easier for Clinical research which is a very expensive affair worldwide which is a must before the launch of any drug, apart from the geographical advantage of cheap subjects, Biocon also through is subsidiary Syngene has a strategic role in cost cutting while in clinical research.[3] * Strong Management- Ms. Kiran M Shaw has successfully proven to be the only driving force of Biocon, and they management under her has proven its competency over time with achieving growth as high as168%[3] * Unique products – Biocon has always had a niche for its uniquesness and using biotechnology for the same, its
Strength: The strengths of Biocon are * Financial Leverage – Biocon has maintained a constant Debt/ Equity ratio between 0.11-0.12[1] in the last 5 years, which gives it a financial leverage, thus letting the share holders enjoy the earnings and also makes the organization financially strong. * Skills in Enzymes – Biocon with its recombinant DNA technology has managed to achieve a different share in the industry, its products like Insugen from recombinant human DNA, BIOMAb EGFR India’s first anti cancer drug could be some of the examples.[2] * Little or no risk associated with Business model: A well diversified business model spans the entire drug value chain through vertical integration. The subsidiary companies like Syngene, Clingene, NeoBiocon, Axi Corp GmBH, Biocon Biopharmaceuticals Private Limited. Thus has clearly diversified the risk across the globe.[3] * US FDA Approval for drugs – The US Food and Drug Administration to its drugs means that they can market and sell their drugs internationally too.[4] * Competence in Molecular Biology- Being India’s first biotechnology company to have exported its molecules to US and Europe, with its core competency in Human recombinant insulin and also its advances in oral insulin makes it the best competitor. * Low cost in Clinical research- Indian scenario makes it easier for Clinical research which is a very expensive affair worldwide which is a must before the launch of any drug, apart from the geographical advantage of cheap subjects, Biocon also through is subsidiary Syngene has a strategic role in cost cutting while in clinical research.[3] * Strong Management- Ms. Kiran M Shaw has successfully proven to be the only driving force of Biocon, and they management under her has proven its competency over time with achieving growth as high as168%[3] * Unique products – Biocon has always had a niche for its uniquesness and using biotechnology for the same, its