biocon business ethics

8/10/2019 Biocon Business Ethics

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Case Study: BioconIndias

Own Home-Grown Biotech

Company


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Overview of Biocon

Biocon, Indias own home- grownbiotechnology company, wasestablished in 1978 as India's leadingbiotechnology company. It has evolved

over the past 30 years from an enzymemanufacturing unit to a fully integratedbiopharmaceutical enterprise, focusingon health care.

It has two subsidiary companies: Syngene International Limited Clinigene International Limited


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BioconsPerformance

December, 2006- 44% increase in netprofit at Rs. 475.1m for third quarterwhere in previous year it was 327.9 m.

It earned a revenue Rs. 8630m, profitof Rs. 1080m 2006-2007 and grew 23%in first quarter of 2007-2008.

BSE - closing at Rs. 410.25

NSE - closing at Rs. 410.75 It gained Rs. 75 touching an intra-day

high of Rs. 445.65 on BSE.


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Biocon in news Recently

Kiran Mazumder Shaw, the ChairpersonNew York Times: Indiasmother of invention

The Economist:IndiasBiotech Queen

Marketing license for BIOMab EGFR for

Pakistan on 18 January 2007Sign MoU with Neopharma for a joint venture

on 5 January 2007

Comprehensive portfolio of renal therapy

products on 8 March 2007Research partnership with Bristol-Myers

Squibb on 14 March 2007


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Biocon - Important Milestones

Establishment of Biocon India1978

Manufacture and export enzymes to theUSA and Europe1979

US funding for proprietary technologies1989

Set up in-house research program1990

Establishment of Syngene1994


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Enter to biopharmaceuticals and statins,leverage its technology platform1996

Become an independent entity1998

Set up Clinigene2000

Approval of manufacturing lovastatin by US

Food and Drug Administration2001 Clinigeneslaboratory receives CAP

accreditation2002


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Develop human insulin on a Pichia expression system2003

New research centre in Bangalore

Partnership with Vaccinex, Inc to discover 4 therapeutic antibody2004

Sign commercial agreement to deliver insulin API in Asia, Africaand the Middle East2005

Launch Indias first cancer drug BIOMAb EGFR2006

Agreement with Abraxis Bioscience of US to sell its Abraxeme2007


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Biocon and its Subsidiaries

Syngene

99.99% ownedsubsidiary

Paid-up capitalRs 28.75million on 18November1993

Clinigene

100% ownedsubsidiary

Incorporated onAugust 4, 2000with anauthorizedcapital of Rs 5

million

Paid-up capitalRs 500,000

BBPL

Collaborationwith CIMAB

SA, Cuba

51% equityparticipation byBiocon

Paid-up capitalRs 8.8 million


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Biocon Product and Services

Biopharmaceuticals Biocon manufacturers a wide spectrum of

Biopharmaceuticals ranging from small

molecules to biological and dosage formswhich include antidiabetic agent , anti

hypertensive and antiinflammatory

agent , anti- oxidants ,haemostatic agents,

cholesterol-lowering agents, digestive-aidenzymes, hepatoprotective and

orthopedic agents.


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Enzymes Biocon manufacturers and marketers a board

range of industrial Enzymes, food additivesand process aids which include amylases,

cellolases, lipases and proteases.

Food additives

Food additives manufactured and

marketed by Biocon include hydrocolloids,natural colors, specialty fats andspecialized proteins.


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Services

Custom Research

Biocon subsidiary, Syngene, leverages its synthetics

chemistry skills to carry out custom research in early

stage drug discovery and development.

Clinical Research

Clinigene is a clinical research organization that

offers global biotechnology and pharmaceutical major

strong clinical trial services, regulatory and laboratory

capabilities for clinical drug development.

The value added services include patient registries

and clinical database in diabetes, lipidemia, oncology,

and cardiovascular diseases.


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Biocons Corporate Social Responsibilities

Biocons CSR activities center has beenestablished with the aim of identifying andimplementing projects that impact the socialand economic scenario in the country.

Its main focus areas are to provide qualityhealth care and health education for thebetterment of Indian society.

Through its initiatives, Biocon Foundation by

establishing Arogya Raksha Yojana, aims toprovide high quality drugs at affordable pricesto the masses at all BioCare Pharmacies andparticipating clinics.


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Clinical Trail And Drug Testing In India

A drug requires various testing beforetesting- Clinical Testing

India as preferred destination

- Clinical Trails

- Billion dollar business

Poor people of India

- Small compensation


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The Indian Advantage

Cost saving offering of India

Huge number of patients

Poor monitoring mechanism


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Unethical Practices of Biocon

Illegal clinical trials by Biocon In 2004, Biocon & Shantha Biotech in

Hyderabad came under security forconducting illegal clinical trials that led toeight deaths.

Biocon tested a genetically modified form ofinsulin without the proper approval from theDrug Controller General of India (DCGI).After the outcry against Shantha & Biocon,The Indian Govt. adopted stricter ethicalguidelines for clinical research, but onecannot be too sure that companies areabiding by the new rules.


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Biocon Enhances Trade Operations inBangladesh

Biocon is on aggressive drive in Bangladesh

because of the countrys increasing

dependence on the lifestyle disorder drugs.

It is easier for companies like Biocon to put

up a plant in countries like Bangladesh since

the pollution norms are not strictly followed

there. Furthermore, clinical trials could be

easily conducted without any objection from

the government.


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Environmental Infractions Company decides to set up a Rs. 10000

million manufacturing facility at Jawahar

Pharma City, SEZ, near Vishakhapatnam,

Andhrapradesh.

Andhrapradesh has been keen to get

Kiran Mazumdar Shaw to invest in the

state ever since it realized that Biotechmajor is unhappy over Bangalores

infrastructure.


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Procedural lapses at Biocon Issue is lapses in making the drug

methylcobalamin , a form of vitamin

B12, & it was followed a seven stepsprocedure. However the company

skipped some steps & changed the

process by using an intermediate drug

imported without license. The state drug control authorities

cancelled the license.


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Conclusion

The above news indicates that the

company is not keen on the

procedures and is willing to correct

only when identified and informed.

This also indicates that Bioconsshift

from Bangalore to Andhra Pradesh is

not only for the effluent treatmentfacility, but for other reasons as well.


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Thank You

biocon business ethics

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