Ethics of Winning

I feel honoured to address the Fifth Convocation of the O.P. Jindal Global University. I am given to understand that this University is unique in many of its programs be it the multidisciplinary Masters of Arts program in Diplomacy, Law and Business or the Bachelor of Arts programs in Liberal Arts, Humanities and Global Affairs or the Jindal School of Government and Public Policy which is the first exclusive public policy school in India.  

It is these differentiated programs that have, in a very short time, become hallmarks of innovative excellence and thereby done its alumni proud.  I congratulate the founders and all the stakeholders of this great Institution.

Standing before you today, against the backdrop of the Rio Olympics, I can’t help but use the analogy of looking at the graduating Class of 2016 as qualifiers for Life’s Decathlon, an arduous race of guts, grit and endurance.  In fact the gold medallist of an Olympics Decathlon is often described as the ‘World’s greatest athlete’ because it is about the combined performance of an athlete across track and field events.  Just qualifying to get to this point is a proud moment but the course ahead is about competition and winning and above all, fair play.

Jobs and the Jobs Market

So let’s start with the first race the 100 meters sprint.  Every one of you is making a dash to get yourself employed, to find a job so to speak.  Some of you will find dream jobs in dream companies, some of you will be daring and join start-ups and some of you will even be gutsy enough to start your own companies and become entrepreneurs. Many of you will be disappointed and opt for what is available knowing that this is only the start of your life’s journey and that there are no winners or losers at this stage of the race. 

When I reflect on my own aspirations when I graduated from Ballarat University in Australia as India’s first woman Brew Master in 1976, I sprinted across the country to get a job in any Brewery that would hire me but that was not to be.  So I decided to be self-employed and start my own enterprise. In hindsight, I converted my failure into a hugely rewarding entrepreneurial success.

Today, the job market for young men and women is vast and varied.  Perhaps the most disruptive change is that of a shift in the societal mind-set that no longer seeks job security but job opportunity. Start-Ups have revolutionized the job market for young people whether they are techies or just entrepreneurial. Today India boasts of 25,000 start-ups valued at $75 billion employing nearly a million people.  India ranks third among global start-up ecosystems with 4 to 5 start-ups being born every day.  The Government, in its wisdom, has rightly come out with a policy for Start-Ups to make it that much easier for young enterprises to start, scale and endure.

Building expertise: Converting Knowledge to Wisdom

The next event in the Decathlon is the long jump, which is about immersing yourself in your chosen job by applying the knowledge that you have acquired at this great institution to gain experience and eventually expertise. This is what skilling and competence building is all about.  Computer education has created an enviable cadre of coders who have assumed global scale and competence and earned our country worldwide leadership in software services. Likewise, our biological scientists, chemists and pharmacologists have built global expertise in developing generic drugs and vaccines that have made a huge difference to global health.  India has earned the rightful title of “The pharmacy of the world” where one in three children in the world are immunized with a ‘Made in India’ vaccine and Indian generics account for a third of the global market.   Building on this success, the Indian Pharma sector’s “Make in India” strategy must be driven by a mantra of “Highest quality at the lowest cost” which will make a big impact on global healthcare.  In my own case, I am committed to making a difference to Diabetes and Cancer by providing affordable access to life saving drugs like Insulin and Biological Cancer Drugs.  I hope that over the next decade, one in five Diabetics around the world will use one of our Insulin products.  I have always believed that Blockbuster drugs are not about a billion dollars but about a billion patients.

Goals and targets

The third leg of Decathlon is the Shot Put. In context of your career path, it is about making intense efforts to achieve targets.  Credibility is built by achieving stated goals and as an entrepreneur, I have well understood the importance of overcoming credibility challenges.  When I started my company Biocon in 1978, I had huge credibility challenges.  I was a 25 year old woman entrepreneur who was trying to build a business based on an unknown field of Biotechnology. Banks were unwilling to extend credit or even lend to me, people were nervous of working for me and even traders were reluctant to do business with me.  I had to overcome a gender barrier, a genuine concern about being young and inexperienced and above all the lack of understanding of what Biotechnology was all about.  I went about overcoming these challenges by setting myself goals and with each intense effort I managed to obtain Bank credit, recruit people and make my first export sale of an enzyme which also was  the first for the country.

Aiming high, raising the bar

The next competition is the high jump which is all about raising the bar and aiming higher and higher. Unless you are willing to push yourself into this realm of excellence, you cannot win.  More importantly, you have to try over and over again to realize success.  Inability to jump the bar the first time is by no means a failure.  Every entrepreneur knows that nothing works perfectly the first time.  It’s only after several attempts that you finally realize success.  Steve Jobs was a perfectionist and it always took several versions before a Mac or an iPhone or an iPad was launched.  Just like it took Elon Musk several iterations before he brought Tesla to a waiting world.  

Success is an endurance race

The next is the 400 meters race which is a stamina test. Every one of us faces periods of fatigue, lack of job satisfaction and even serious doubts of whether it is worth pursuing one’s efforts. Endurance is the name of the game and those who endure come out stronger and more confident to rise to greater challenges and greater heights. This part of life’s journey or a career path is critical and whilst it’s easy to jump ship and escape stress, it’s tough to endure, overcome challenges and thereby build self-confidence, the traits of true leadership. Far too many young people are lured by the temptation to switch jobs to make an extra buck or to escape work related stress and data will tell you that these job hoppers never make meaningful impact as they fail to develop both experience and expertise.  As the saying goes, failure is temporary but giving up is permanent.

Overcoming obstacles – confidence building

The 110 meters hurdles is next.Every  career path is fraught with obstacles but overcoming obstacles is a confidence building exercise.  My own entrepreneurial journey has been an obstacle race which I have successfully overcome time and time again to build confidence, quell scepticism and drive leadership. This must also be your resolve as you step into your life’s journey.

Values and ethics – strategy for leadership

The next three events, the discus throw, the pole vault and the javelin are about lofty aims and higher goals.  There will come a time when you will need to have long term, strategic goals. Your responsibilities will shift from being task and activity oriented to problem gauging and problem solving.  This will call for strategic thinking that will enable you to create enduring value for you and the organizations that you serve.  This is what builds great companies and great leaders.  Integral to this is an uncompromising code of values and ethics.  Today’s sporting world is mired with doping controversies that have dented the ethos of fair play and sportsmanship.  In the context of business, whilst performance enhancement by leveraging new technologies is imperative, corrupt practices that provide surreptitious business advantage are akin to performance enhancers that are unethical and illegal. India ranks poorly in the ease of doing business which has led to speed money and high levels of corruption to deal with an over regulated economy.  The advent of the digital world has now brought focus on e-regulatory reforms that will deliver both transparency and traceability which will hopefully mitigate this malaise.

Sense of Purpose

Great companies and great leaders are driven by a deep sense of purpose. Elon Musk is driven by a mission to reduce global Warming through sustainable energy production and consumption thereby reducing the risk of human extinction!  Bill and Melinda Gates established their foundation on the belief that every life has equal value and have therefore focused their efforts to help all people lead healthy, productive lives by eradicating the world of infectious diseases, hunger and poverty. My own company Biocon is on a mission to make a difference to global health by providing affordable access to life saving drugs for Diabetes and Cancer. I urge every one of you to be guided by a sense of purpose and a spirit of challenge.  It will go a long way in building character and thought leadership. Remember, our country cannot aspire to economic greatness as long as India remains home to one-fourth of the world’s poor and a third of all malnourished children across the globe.

Hallmark of champions

The final lap is the 1500 meters run which crowns the champion.  At your career’s end or retirement, you will have run a long and fulfilling race, overcoming hurdles, crossing high bars and striking tough targets.  You would have competed with the best and won some races and lost others.  In the end it’s about how you ran the race.  Did you finish the race with a winning mind-set or did you simply give up mid-way because you lacked the stamina to endure?   As the saying goes, it’s not about winning or losing but about how you ran the race.

Beyond Decathlon: Team sports

Up until now, I have spoken about the individual but my message would be incomplete without stressing on the importance of team sports and team spirit.  The Olympics celebrates champions at the individual level but more importantly, at a team level and at a country level.  All of these resonate with the business world.  Whether it is synchronized swimming and organizational alignment in attaining stated goals or scoring winning goals in Hockey or smashing the volley ball to triumph, it’s about working together as teams with a shared vision to succeed.  When I reflect on my own success as an entrepreneur, I can honestly confess that I would be nothing without my incredible team at Biocon.  It’s people who steer organizations to greatness.  OP Jindal Global University’s success depends upon all of you to be its best global brand ambassadors.  As the great Brazillian saying goes, “When you dream alone it’s only a dream but when dream together it becomes reality.”

Conclusion

Today, we are at the cusp of a huge transformation. We are engulfed in a digital world where technology is disrupting our lives in unprecedented ways.  Uber and Ola are the new norm in public mobility. Flipkart and Amazon have displaced the Bricks & Mortar retail space with click and buy E-tailing stores. Wearable devices and smart phones have radically changed the way we manage our calendars, navigate our travel, watch movies, or buy tickets for anything from theatre to airlines. Today start-ups are capturing data, curating databases and monetizing information in a manner that was never thought of before. Robots are assembling automobiles and even performing surgeries. We have driverless cars and soon I suppose pilotless flights. We have 3D printing technology that can print bespoke organs or blood vessels or bones and joints.  The possibilities are endless but it will take painstaking efforts to build enduring businesses in this exciting virtual world.  Remember, no longer is value creation linked to scale but to the power of the idea.  We are today witnessing the birth of the “ideas economy,” where the value of a company is measured by its “innovation quotient” rather than traditional metrics such as revenue, profit, physical assets etc. The potential of the WhatsApp messaging platform to change the way the world communicates led Facebook to pay an “innovation premium” resulting in a blockbuster deal value of US$19-billion. The power of the idea is being reinforced by the dizzying valuations being commanded by companies like Snapchat (US$20 billion), Uber (US$65 billion) and our own home-grown companies like Ola 

($5 billion) and Flipkart ($15 billion)

Go out and innovate a bright future for our country by taking breakthrough ideas to the market, ideas that will end poverty, hunger and unemployment and provide equitable prosperity for all.

Ms Kiran Mazumdar-Shaw's Commencement speech at the 5th Convocation of O P Jindal Global University

Biocon Advances In War Against Diabetes

Courtesy: Economic Times Blog 

There are nearly half a billion diabetes patients in the world. The alarming growth in the global diabetes population is leading to a huge demand for effective therapies from pre/early diabetes to late-stage disease. Of the 100 million people who need insulin globally, however, only ‘one in two’ can manage and afford costs associated with chronic insulin therapy.

As a leading insulins producer, Biocon is committed to provide affordable access to high quality insulins to patients worldwide through our differentiated portfolio, which includes rh-Insulin as well as basal and rapid-acting insulin analogs along with delivery devices. Our aim over the next 10 years to provide our insulin products to ‘one in five’ diabetes patients in need of insulin-based therapy anywhere in the world.

Already, our global scale capacities for manufacturing high quality, affordable insulins have positioned us as the largest Asian insulins player and the fourth largest producer of insulins in the world, enabling us to address the growing needs of diabetes patients across the globe. Globally, we are among the Top 3 biosimilars players in rh-insulin and Insulin Glargine in terms of market share.

Insulin Glargine Launch in Japan

In the beginning of FY17 we took a small but significant step in our journey to make a global impact in diabetes management through our affordable biosimilar insulins when our partner FUJIFILM Pharma launched our biosimilar Insulin Glargine in Japan. This is the first biosimilar from India and second biosimilar Glargine to be approved and launched in Japan. Importantly, this is also Biocon’s first biosimilar approval in a developed country.

Our product will provide a high quality, yet affordable, world-class long-acting biosimilar basal Insulin Glargine to the over 7 million people with diabetes in Japan.

As Japan has a reputation of very high expectations of product quality and manufacturing standards, the launch earns us huge credibility and validates our mission of delivering the highest quality at the lowest cost.

If fact, it is a testament to our commitment to quality and compliance that our manufacturing facilities were audited and approved by the Japanese regulatory agency, PMDA, on their very first inspection visit. It endorsed our strong R&D capabilities spanning process development, analytical characterization, and preclinical and clinical development, which were leveraged in submitting a comprehensive regulatory dossier to the Japanese health authorities.

The significance of the Japanese approval for Glargine goes beyond Japan as it will likely open some markets for us that rely on a developed country approval and provides confidence in terms of approvals in other developed markets.

Insulin Approvals in Malaysia

Our efforts to make our insulins more widely available also got a shot in the arm in the first quarter of FY17 with Biocon’s rh-Insulin becoming the first product manufactured at Malaysia to be approved for commercialization by the Ministry of Health (MoH), Malaysia. Biocon’s Insulin Glargine was also approved by the MoH, Malaysia. These approvals will open up commercialization opportunities for the company and will enable us to address the needs of nearly 3.3 million diabetes patients in Malaysia.

The commercialization of the Malaysian facility will augment our global scale in insulin production thus helping us achieve the ‘economies of scale’ needed to provide affordable insulin and insulin analogs to treat diabetes, which now affects nearly ‘one in 11’ adults globally. Regulatory filings for several other emerging markets are underway to enable commercial sales from the Malaysian facility.

Biocon is already recognized as Asia’s largest Insulin producer and our Malaysia facility will further strengthen our position as a global player.

The development of Insulin Glargine partnered with our partner Mylan is also tracking towards regulatory filings in the developed markets during this fiscal.

To address the diabetes burden in the US, we are collaborating with Lab PiSA to develop generic rh-Insulin. Biocon will be responsible for clinical development, regulatory approval and commercializing the product in the U.S. while PiSA would contract manufacture the drug product in their facilities in Mexico.

These significant developments at the beginning of FY17 have positioned us well to achieve our long cherished objective of providing affordable access to transformative, lifesaving biopharmaceuticals to patients across the globe.   

This piece was first published in the Plain Speak on Economic Times Blog on July 28, 2016

A Collaborative Approach to Healthcare Delivery

Courtesy: TOI

The highest attainable standard of health is a fundamental right of every human being. In this context, universal access to healthcare assumes prime importance. However, healthcare delivery poses a significant challenge for policymakers in India.

A severe lack of resources means that there is only one doctor per 1,700 citizens in India, well below the minimum ratio of 1:1,000 stipulated by the WHO. There are also only 1.3 beds per 1,000 population, significantly lower than the other BRIC economies and the WHO guideline of 3.5 beds per 1,000 population. In rural areas and smaller towns of India, even basic health services remain inaccessible. Given the sorry state of affairs it is no surprise then that India continues to lag behind poorer neighbors like Bangladesh, Sri Lanka and Nepal in terms of child mortality. For every 1,000 children born in India between 2011 and 2015, 48 died on average every year before reaching the age of five, according to the World Bank. Equally alarming is the fact that a quarter of the world’s neonatal deaths and 15% of maternal deaths happen in India.

It is pertinent to note here that despite the fairly rapid pace of economic growth that India has experienced in the last 20 years, public health spending in the country is only about 1% of GDP. This compares to 3% in China, 4.1% in Brazil and 8.3% in the US.

Inadequate government spending on healthcare and lack of access to health insurance pushes almost 3% of India’s population into indebtedness and bankruptcy every year. To address this situation, the government needs to come forward and take proactive steps to implement a universal healthcare program that ensures basic healthcare services for everyone with minimum financial burden being passed on to the patient. 

India needs a universal healthcare program that hinges on affordability and access. This calls for existing public health infrastructure to be revitalized, new medical centres built and modern ICT-based telemedicine technology to be leveraged for addressing the demand-supply gaps in terms of doctors and health facilities. There is an urgent need therefore for public health spending in India to be raised to at least 2.5% of GDP as well as Public Private Partnership (PPP) models in healthcare to be promoted.   

PARTNERING TO MAKE HEALTHCARE ACCESSIBLE

The government alone cannot meet the healthcare infrastructure and capacity gaps in Tier II and Tier III cities as well as rural areas, and this makes private participation a must. While it’s true that some PPP projects attempted earlier have failed, clear policy guidelines can ensure the successful implementation and sustainability of healthcare PPP models in future.

The prerequisites should include agreed upon scope of work, legal and regulatory framework, resources pooling and management, transparency and accountability, suitable policies and a commitment to public good. It is necessary that PPPs ensure that government services are delivered in an economical, effective and efficient manner. The role of the government should be proactive and it should identify areas in National Health Programs, diagnostic and curative services where partnerships are possible. The government should also develop working guidelines based on successful experiences of different states besides framing quality guidelines with professional help from organizations that already have experience in preparing quality assurance tools. Lastly, smart business models need to be put in place without which it will be difficult for private players to achieve reasonable returns on investment.

It is encouraging to see that the NDA government is looking seriously at PPP models for improving healthcare access to the country’s 1.2 billion people and lessen the healthcare burden on the common man. At a time when the federal government is examining ways to implement healthcare initiatives under the PPP model in a time bound manner, states like Rajasthan have already set the ball rolling.

THE RAJASTHAN EXPERIENCE

The Vasundhara Raje government in Rajasthan has partnered with the private sector for running Primary Health Centres (PHCs) and sub-centres across the state. Rajasthan, which is geographically the largest state in India, has over 500 Community Health Centres, over 2,000 PHCs and over 13,000 sub-centres. Several PHCs, which are located in remote areas, are now being run on a PPP model. The terms of the PPP engagement are simple. While the state government will provide the necessary infrastructure, medicines, equipment and operational costs, the private operator would provide doctors, paramedics and other staff, free outpatient services and 24-hour emergency services. These PHCs are already reporting encouraging results as the improvement in cleanliness and availability of staff and medicines  have led to a jump in the number of patients being treated.

The Rajasthan government has also launched a health insurance scheme to provide medical coverage of up to Rs 3 lakhs to each citizen and is expected to cover nearly 70% of the state’s population.

Health insurance is an area where PPP arrangements have been successful. The Yeshasvini Co-operative Farmer’s Healthcare Scheme, a PPP scheme involving Narayana Health and the Karnataka government, offers coverage of over 800 surgical procedures to farmers and their family members. Yeshasvini is one of the largest self-funded healthcare insurance schemes in the country. Neighboring Andhra Pradesh runs the Arogya Raksha Scheme in collaboration with the New India Assurance Company and with private clinics. The scheme, which is fully funded by the government, provides hospitalization benefits and personal accident benefits to citizens below the poverty line.

TOWARDS A HEALTHIER FUTURE

The new Companies Act of 2013 mandates corporates to spend 2% of their profits on CSR activities. The government can take this opportunity to partner with the private sector for taking healthcare delivery to the next level. It will lead to a huge improvement in healthcare delivery in India through a combination of good infrastructure, latest technology and the best available medical expertise. If PPPs are need based and customized to local circumstances, they clearly have the potential to drastically change the healthcare landscape in India.

PPPs can thus be a 'win-win' arrangement in which diverse actors with varied motivations and philosophies work together to contribute to the health of the people and the development of the country.

This piece was first published in the print version of TImes of India on May 5th, 2016

Can healthcare costs in India come down further?

Courtesy - Google Images

When you can’t tax the rich, tax the less well-off. This is exactly what the Karnataka government did by notifying all hospitals to collect 8% luxury tax from every patient in an intensive care unit (ICU).

BUDGET 2015 - India Needs a Booster Dose for Health for All

Finance minister Arun Jaitley concluded his Budget 2015 speech with a quotation from the Upanishads, “Sarve bhavantu sukhinah, sarve santu niraamayaah” (May everybody be happy, may everybody be free from illness).

The Language Conundrum

Image Courtesy: http://bit.ly/1niiYQ2

The Supreme Court’s decision to stop the Karnataka government from imposing Kannada as the medium of instruction in all primary schools of the state should be viewed pragmatically and not emotionally.

We now live in a global village where English is the most essential language for global business success. Estimates show that 2 billion people worldwide will be learning English by 2020. As India’s integration with the global economy picks up pace, new job opportunities will be created wherein strong English language skills will be a key requirement. Denying our children the opportunity of picking up English language skills now would have put them at a competitive disadvantage later when they would have entered the job market.

Preventing children from accessing English language education in their formative years is not only irresponsible but irrational.

The misconception here seems to be that an overemphasis on English in schools would erode Kannada language skills in young people and hamper their ability to communicate in their mother tongue.

However, that line of thinking is completely fallacious. Scientific studies have shown that between birth and the age of ten or eleven, the human brain makes new connections all the time and that gives children the ability to quickly pick up many new skills, including multiple languages. This means that schools can simultaneously use both Kannada and English as their medium of instruction.

Therefore, insisting on using Kannada to the exclusion of all other languages in primary schools is imprudent.

Just look at what our neighbouring states are doing. To improve the teaching of English language in the state, the Maharashtra government has tied up with the British Council of India for the Maharashtra English Language Initiative for Primary Schools, under which thousands of primary school teachers have received training. Does this mean the people of Maharashtra are less devoted to their mother tongue? I don’t think so.

Cultural chauvinism is misplaced in today’s world. That is not to say that we should ignore our language and culture. Preserving our language and culture is important, but so is ensuring our economic competitiveness.

Karnataka is known for its visionary policies that have established Bangalore as the IT and BT capital of India. In that context, making Kannada the sole medium of instruction at the primary level would have been a very regressive step with the potential of undermining Karnataka’s standing as an economically progressive state.  

Why FY14 was a Remarkable Year for Biocon

The fiscal year gone by has been one of the most exciting ones for Biocon. We delivered on our promise of affordable innovation, recorded robust top line and bottom line growth, augmented our capacities, optimized our product portfolio and introduced initiatives to achieve operational efficiencies.

  

We successfully commercialized two world-class, low-cost monoclonal antibodies, an outcome of our innovation model– ALZUMAb™ and CANMAB™ , in India in FY14.

Our novel, ‘first-in-class’ biologic drug for chronic plaque psoriasis, ALZUMAb™, was made available to patients in August 2013. It is the first biological drug for psoriasis to be researched, developed and manufactured in India. ALZUMAb™ has received an enthusiastic response from both physicians and patients as it is an affordable treatment option that promises patients a better quality of life. This unique product offers an effective biologic treatment solution to 1-2% of the Indian population who suffer from psoriasis.

Biocon followed this up with CANMAb™, the world’s lowest priced trastuzumab. The launch of CANMAb™ in India represents an important milestone. It demonstrates that Biocon’s decade-long experience and expertise in developing biologics has equipped the company with the necessary clinical development and manufacturing skills to deliver high quality, world-class products.   

Creating IP, Adding Value

With these two launches, Biocon has again proved to the world that as far as scientific talent is concerned Indians are second to none.

Moreover, these two launches have lent credibility to our strategy of building a rich pipeline of innovative programs that has today made Biocon one of the highest R&D spenders in this country.

I believe that the only way we can create exponential and enduring value for Biocon’s stakeholders is through innovation and intellectual wealth and I am happy to say we are doing just that.

Here, I would like to draw attention to the fact that Biocon has been able to deliver on its promise of affordable innovation despite the current hostile environment towards pharma innovation in India.

Surmounting Challenges

Uncertainty over clinical trials is just one of the several challenges that Biocon faced in FY14. But in keeping with the company’s ethos, we addressed them with a sense of dedication and determination.

The clinical trials environment in India has become extremely challenging because of the irrational stand taken by courts on the issue and the government’s knee-jerk policy-making to mollify the judiciary.

If the situation is not rectified, it can have an irretrievable impact on India's ability to partake in new drug development and end up denying patients here the benefits from the latest advances in medical science.

To address the increasing product commoditization in the small molecules business and improve profitability, Biocon had embarked on its strategy of moving up the value chain to forward integrate into building a robust pipeline of generic formulations, including ANDAs for the US market. This pipeline of difficult-to-make, technology-intensive molecules will be the growth driver for the small molecules business in the next few years. It will also make Biocon among the few companies in the world with a strong portfolio of small molecule generics as well as generic biologics.

In FY14, the domestic pharma industry saw growth slow down to 6% due to the combined impact of economic slowdown, intense competition, and issues related to drug price controls. However, leveraging the strengths of its business model with a focus on specialty pharma, Biocon was able to outpace the industry, growing its India business revenue at 13%, over double the pace of the industry growth.

Financial Highlights

Besides, the India branded formulations business, other principal revenue drivers like insulin exports and research services also helped Biocon’s revenue jump 16% in FY14. Our profit for the previous year was boosted by an exceptional income related to the dissolution of our global partnership with Pfizer. Excluding the exceptional income recognized last year, profit for FY14 grew 28%.

Good demand from emerging markets for our insulin exports led to a 15% growth in Biopharma sales for the year. To meet increasing demand, Biocon had enhanced its insulin manufacturing capacity in Bangalore in FY14.

Given Syngene’s growing stature as a pharma outsourcing partner of global repute, it was no surprise then that our research services business reported stellar growth of 28% in FY14.

Syngene, which has marquee clients like BMS and Abbott, got a strong endorsement of its capabilities this year after Baxter established its Global Research Center at Syngene in Bangalore.

Other Highlights

In FY14, Biocon strengthened its focus on research partnerships with two important collaborations.

Biocon entered into a pact with Quark Pharmaceuticals to develop novel therapeutics for treating serious ophthalmic conditions like glaucoma.

It also tied up with Advaxis for developing a novel cancer immunotherapy to treat HPV-associated cervical cancer in women.

As a leading bio-pharma enterprise Biocon embarked on establishing Biocon Academy, a Centre of Excellence for Advanced learning in Biosciences. The Academy will train engineering and biotech graduates to enhance their employability and strengthen the talent pipeline for the benefit of the country’s bio-pharma sector. The first batch of 30 students who underwent 16 weeks of rigorous learning and skill development will be ready for placements in May. As an extension of its Corporate Social responsibility Biocon is offering 75% of the course fee as scholarship to all the students.

For its flagship program, the Academy has collaborated with Keck Graduate Institute, California.

Biocon was ranked No 6 amongst the Top Ten Global Best Employers as a mark of recognition for its Clarity of vision, CSR initiatives and Quality of research, by the 'Science' Magazine in 2013. It had debuted on the list in 2012 at No. 19.

We stay committed to pursue our innovation led business strategy and build superior value for Biocon and its stakeholders.

Sun Pharma-Ranbaxy Deal Has Some Important Lessons

Image adapted from: http://bit.ly/1jJxc8B

Over the last few days, media has been abuzz with the news of Sun Pharma’s $4-billion acquisition of Ranbaxy.

Given the fact that it is the second largest acquisition in the Indian pharmaceutical sector till date, it is not surprising that everybody is fixated on the sheer size of the deal.

But if you look beyond the fancy valuation, this courageous move by Sun Pharma founder Diliip Shanghvi to buy out the beleaguered Ranbaxy from Daiichi Sankyo has some important lessons for everybody.

1. Creating value

Dilip Shanghvi, a first-generation entrepreneur, has not rested on his laurels after building India’s most valuable pharmaceutical company.

By acquiring Ranbaxy, Sun Pharma has taken a giant leap to emerge as the fifth largest speciality generic drug maker globally and the largest in India.

An entity that started off with a single manufacturing plant in 1983 is now poised to have operations in 65 countries, 47 manufacturing facilities across five continents and a global portfolio of specialty and generic products once the Ranbaxy deal closes.

Not only that, Sun Pharma’s revenue will almost double to $4.3 billion.

2. Restoring lost glory

Ranbaxy's acquisition by Sun Pharma will result in a formidable generics power house, which could help restore India’s reputation as a reliable provider of good quality, affordable medicines for patients the world over.

Having successfully dealt with regulatory issues at its US subsidiary Caraco Pharmaceuticals, I believe Sun Pharma is better placed than Ranbaxy’s erstwhile Japanese owners in tackling the various instances of regulatory non-compliance in the company.

Both Sun Pharma and Ranbaxy have formidable track records in the US market, so the pooling of their manufacturing, distribution and regulatory strengths could be a crucial step forward in regaining the market share the Indian pharma industry has lost in the aftermath of the recent quality controversy.

3. Living up to reputation

Dilip has an enviable reputation of acquiring distressed assets and turning them around.

He has previously succeeded in reviving the fortunes of Israel-based Taro Pharmaceutical.

If Dilip can give Ranbaxy a fresh lease of life, it will cement his reputation as a turnaround artist par excellence.

4. Unshackling pharma M&As

The Sun Pharma-Ranbaxy deal also shows that there is no need to ring fence the Indian pharma industry though restrictive FDI policies. The domestic pharma industry can compete with pharma MNCs when it comes to M&As.

As an Economic Times editorial put it succinctly: “The current deal shows that what MNCs can do, Indian companies can do as well, to achieve scale.”

The Sun-Ranbaxy merger stands a better chance of being successful due to the inherent similarity of their business models and work cultures.

The Ranbaxy deal has been structured in such a way that Daiichi Sankyo will become the second largest shareholder in Sun Pharma. Instead of seeing Daiichi Sankyo as a threat, Dilip sees the Japanese company as an ally in realizing Sun Pharma’s global ambitions.

Depending on the business imperatives, founders of pharma companies should be free to monetize their assets just like most of the other sectors.

5. Doing things differently

Where others had written off Ranbaxy because of the company’s quality and regulatory non-compliance problems in the US, Sun Pharma decided to take a contrarian view.

In fact, Sun Pharma has succeeded in being an outlier in the Indian pharma industry because of Dilip’s penchant of doing things differently.

If there’s one big lesson that a budding entrepreneur can take away from the Sun Pharma-Ranbaxy deal it is that good entrepreneurs need to constantly look for opportunities, whether they are just getting started or already in business. And when opportunities come, one will need to take a calculated risk.

This post originally appeared on LinkedIn, please click here to read it on LinkedIn. 

5 Reasons Why BJP’s Manifesto Stands Apart

Image adapted from: http://bit.ly/1mV9jOT

The BJP seems to have invested a lot of thought in preparing its election manifesto, ensuring that the document is granular in its objectives while being wide-ranging in its scope. The manifesto’s emphasis on e-governance, decentralization, entrepreneurship and creation of physical and social infrastructure are truly progressive.

The BJP’s approach to food security, water security, health security, job security, education and skills development are more thoughtful and nuanced than the UPA's ‘dole’ approach. The sense that one gets is that there are people in the BJP who understand India’s myriad challenges in the economic, social and administrative spheres and have a credible plan to tackle them.

Here are five reasons why I think that the BJP’s manifesto stands apart in articulating a fresh approach to some persistent issues.

1. Governance

The BJP manifesto singles out E-Governance as the overarching and underlying model for delivering good governance in the country. To facilitate this, the manifesto not only talks about digitization of government records but also about the need to build digital highways across the country through optical fibre networks. Most importantly, it talks about the initiation of a National e-Governance Plan, which will cover every government office from the Centre to the panchayats.

2. Food security

The BJP’s approach to food security is also refreshingly different from the UPA’s dole-centric model. Increasing public investment in agriculture and rural development and addressing the issue of under-nutrition and malnutrition, as outlined in the BJP manifesto, will go a long way in ensuring proper nutrition and the dignity of a sustainable livelihood to the bulk of India’s population. Moreover, putting in place strict measures to prevent hoarding and black marketing as well as setting up an agri rail network to quickly move perishables like vegetables from one part of the country to another can prove effective in keeping food inflation under check.

3. Job creation

The BJP’s approach to job creation also stands out for its emphasis on entrepreneurship in both rural and urban areas. The BJP manifesto thus talks about incubating entrepreneurship and facilitating credit to encourage self-employment among the youth, initiating multi-skills development programmes, generating IT-based jobs in rural and semi-urban areas.

Importantly, the manifesto lays a lot of stress on skill development, promotion of vocational training and bringing together industry, academia and government to ensure industry-responsive manpower. Once implemented, these initiatives will be able to create high-skilled jobs that add long-term value to the economy.

4. Water security

The BJP manifesto is also exceptional in that it draws attention to the urgent need for a comprehensive plan to address the issue of India’s water security. At a time when our water resources are depleting fast, measures such as rain water harvesting, river linkages, water conservation, sewage treatment and desalination projects will go a long way in tackling this looming problem.

5. Health security

The BJP’s manifesto also highlights the need for a universal healthcare program which hinges on affordability and access. The document talks about leveraging telemedicine and mobile healthcare for rural healthcare delivery, addressing the shortfall of healthcare professionals in the country, modernizing government hospitals and upgrading healthcare infrastructure among the various measures needed to achieve the goal of ‘healthcare for all.’

In addition to these, the BJP’s manifesto also promises legal, judicial, administrative and police reforms, which will deliver quick and far reaching results that will boost the confidence of both investors and as well as citizens. The commitment to a dedicated police force and related infrastructure for women is also an important aspect of these intended reforms.

Manifestos brought out by political parties before elections are usually met by cynicism from voters, so if the BJP is able to show the necessary political will in implementing these bold measures in a time-bound manner when it comes to power the party will be rewriting the political paradigm in India.

Adieu 'Annus Horribilis'

2013 was probably one of the worst years for the Indian economy, with inflation running unbridled and economic growth grinding down to a level below 5 per cent.

Unfortunately, the pharma sector also witnessed an unprecedented slowdown growing at a single digit in 2013 against an average growth of 12 per cent the previous year. The negative impact was further compounded with adverse policy decisions with respect to pricing, FDI, clinical trials and compulsory licensing in India. An overactive USFDA issuing notices to some of the leading Indian pharma companies tarnished the sector’s image. All this made 2013 an ‘Annus Horribilis’ for Indian pharma.

India Needs to Embrace a Start-Up Culture

A recent WHO report shows that out of the 27 million babies born in India every year, close to 3.6 million are born prematurely, and out of this more than 3 million infants fail to survive due to complications.

10-steps to make Bangalore a World -Class City

Once a little-known Indian city, Bangalore today has captured the world’s attention for its IT excellence. Ironically, the very city that delivers innovative solutions to the globe is itself mired in civic chaos evidenced by bad roads, shoddy infrastructure, lack of water & power, unruly traffic and poor waste management.

Can India Produce The Next Apple Or Google?

In India, there is a lot of talk about ‘innovation.’ But the innovation that we talk about is not the real innovation. Real innovation has an inherent element of high risk, which Indians are averse to. As a result, you do not see people in India investing in real innovation..

Leading with a Social Conscience

As entrepreneurs embark on a venture, they face a moral choice – should they lead the way, or follow in the path laid out by another? Being a follower has many advantages. Building on a tested and proven idea reduces risk and can lead to success much quicker. Leading, on the other hand, entails hunting for new horizons, and is fraught with the danger of failure.

Let’s Set a Global Drug Quality Benchmark

  With Indian-made generics accounting for a US market share of over 25 per cent, it is not surprising that it is gaining significant mindshare of the Food and Drug Administration ( FDA). The spate of quality issues with leading Indian pharmaceutical companies in the past couple of years however should not be viewed in isolation. Big Pharma in the West, too, has been facing increasing flak from the FDA and other regulators over good manufacturing practice ( GMP) violations. High profile names like J& J, Genzyme (Sanofi), GSK, Sandoz, Watson, Teva and many others have encountered their share of quality problems and have been served with ‘warning letters’ from FDA.

Women at Work: Biocon Founder on Philanthropy, Sexism and Politics

In the first in a series of interviews with women who are leaders in their field in India, The Wall Street Journal’s India Real Time met Kiran Mazumdar-Shaw, the founder of biotechnology company Biocon Ltd. 532523.BY +0.16%, and one of India’s richest women.

Last month, Ms. Mazumdar-Shaw was named by Forbes as one of the most generous people in Asia.

The Role Of Biotechnology In Inclusive Economic Development

25th Intelligence Bureau Centenary Endowment Lecture delivered onSaturday, Dec 22, 2012 at New Delhi by

Kiran Mazumdar-Shaw
Chairman & Managing Director, Biocon Limited

Ranbaxy a wake-up call for Indian pharma

Kiran Mazumdar Shaw  May 24, 2013  http://www.business-standard.com/article/opinion/ranbaxy-a-wake-up-call-for-indian-pharma-113052401084_1.html

The industry must take strong collective action to protect the reputation it enjoys in global markets

Wanted Now: A Ministry for Bangalore

Bangalore’s problems are a complex tangle of issues with various civic and utility bodies and their overlapping agendas often working at cross purposes. The result is that in the past few years the city has slid into a morass of neglect and no one knows who is responsible for what.

B.PAC Mission: Rescue and Revitalize Bangalore

Introduction

The past decade has seen Bangalore morph from an economic and climatic paradise into a living hell for its denizens. For a city that contributes over 60 percent of Karnataka’s GDP and contributes 66 percent of its tax revenues, rampant unplanned and mismanaged growth has resulted in crumbling infrastructure, poor public transport, power and water shortage, stifling pollution, and decrepit sanitation.