Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • May 2007 (Revised September 2008)
  • Case
  • HBS Case Collection

Biocon Limited

By: Krishna G. Palepu and Ananth Chepuri
  • Format:Print
  • | Pages:36
ShareBar

Abstract

Biocon Limited was facing significant pricing pressure in their cash cow business, that primarily consisted of manufacturing Active Pharmaceutical Ingredients (APIs). To combat this commoditization, Biocon's leadership had chosen an innovation-led strategy. This new strategy consisted of licensing and developing proven molecules from strategic partners to leapfrog competition and create large molecule biologics in India. The company understood that its transition from an API to an innovation-led company focused on new biologics would require patience and a risk-taking mindset. Although there was some commonality in the bioprocessing aspects of both approaches, the regulatory approvals, product development paths, and market-access timelines were dramatically different--almost diametrically opposed. Analyzes Biocon's strategic decisions, as well as the risks and challenges associated with migrating from a manufacturing to an innovation-led enterprise. How would they balance short-term pragmatism versus long-term vision? Do they have the appropriate human resources to scale and innovate? Is their India-centric strategy appropriate, since 86% of their end-market demand is in the U.S., Europe, and Japan? Fortunately, early indications with their innovation-led strategy were showing positive signs and demonstrable results--such as their biogenetic insulin and monoclonal antibody launch in India. Their lead oral insulin project, with a planned $100 million budget, was meeting its milestones and deliverables. Many critical business challenges are detailed in this case. Nevertheless, given their fully integrated business model and significant manufacturing base, the odds are in Biocon's favor to overcome these challenges and lead India's biotechnology revolution.

Keywords

Globalized Firms and Management; Innovation and Management; Leading Change; Growth and Development Strategy; Risk Management; Organizational Change and Adaptation; Biotechnology Industry; India

Citation

Palepu, Krishna G., and Ananth Chepuri. "Biocon Limited." Harvard Business School Case 107-083, May 2007. (Revised September 2008.)
  • Educators
  • Purchase

About The Author

Krishna G. Palepu

Accounting and Management
→More Publications

More from the Authors

    • April 2025
    • Faculty Research

    Velong: Rethinking “Made in China” (B)

    By: Krishna G. Palepu, Billy Chan and Nancy Dai
    • April 2025
    • Faculty Research

    Setting a CEO Agenda: Ole Rosgaard at Greif

    By: Krishna Palepu and Kerry Herman
    • March 2025
    • Faculty Research

    Silicon Valley Bank: Gone in 36 Hours

    By: Jung Koo Kang, Krishna G. Palepu, Charles C.Y. Wang and David Lane
More from the Authors
  • Velong: Rethinking “Made in China” (B) By: Krishna G. Palepu, Billy Chan and Nancy Dai
  • Setting a CEO Agenda: Ole Rosgaard at Greif By: Krishna Palepu and Kerry Herman
  • Silicon Valley Bank: Gone in 36 Hours By: Jung Koo Kang, Krishna G. Palepu, Charles C.Y. Wang and David Lane
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College.