Biocon's is working on a strategy to enter into exclusive marketing agreements (EMA) in several countries to grab a major share in the global market with formulations developed from innovative molecules.

Biocon just signed an exclusive agreement with Bayer HealthCare to market Insugen in the Chinese market which heralds its entry into the international branded formulations arena. The product registration is expected to be completed by 2007 end and sales should commence from 2008.

Biocon success in the coming years will be dictated by two parameters: One, its ability to strike many more exclusive marketing agreement deals in US and Europe beginning with Insugen. Secondly, to build sustainable business volumes through a broad spectrum of innovative formulations like oral insulin, immunosuppressants and antibodies.

The company's strategic marketing alliances' initiatives are with an intention to capture the complete value of the niche innovative products as opposed to just active pharmaceutical ingredients. "This is because Biocon did not have much of an advantage as these are only short term opportunities at the time of patent expiry in this space. Going forward the API products in the diabetic segment like Meglitinides (Pioglitazone, Rosiglitazone) and Thiazolidinediones (Repaglinide, Nateglinide) are no longer significant because there are many other players who are going to crowd that space. Therefore in our long-term strategy API for diabetics will not be a focus area. Right now, generics is only a way to fund our innovation. We clearly want to move up the value chain in terms of finished products. Hence we would move away from generics only to move up in the in innovation programmes like the oral insulin project," Dr. Kiran Mazumdar-Shaw, chairman and managing director, Biocon told Pharmabiz.

In the diabetic formulations, Piodart and Metadoze growth has been impressive in terms of growth because of acceptance. The performance of these formulations proves that the company is well on track with its objectives and its target." Our formulation business will definitely deliver impressively in the next two to three years We expect it to be a good part of our overall growth contributing to the company's top line and bottom line," averred Dr. Shaw.

In the domestic market, Biocon is gearing up to grab a 10 percent market share with Insugen from the Rs. 280 crore insulin market in the country. "Pricing pressures would affect only companies that do not manufacture insulin in-house as bulk and source it for formulation development.. In the case of Biocon, it is completely across the value-chain. Therefore pricing pressure will not have an impact, she added.