Global market position and success of Biogen Inc
Biogen Inc is an international biopharmaceutical company, whose business area is the development and sale of drugs and methods of treatment of neurological disorders, as well as neuroimmune and neurodegenerative diseases. The headquarters of the corporation is located in Cambridge, Massachusetts.
Biogen Inc is one of the leaders in the treatment of such serious illnesses as Alzheimer’s disease, Parkinson’s disease, dementia. In addition, the company creates and sells medicines for neurocognitive disorders, ophthalmology, hematological diseases. Biogen owns a division that manufactures biological analogues of known drugs.
The Corporation was founded by a team of advanced biologists, two of whom have Nobel Prizes for DNA decoding and discovery of cleft genes. Biogen was founded in Geneva in 1978, and now its research facilities and enterprises are located in various European countries and in the United States. The company’s products are represented all over the world and hold leading positions in such major markets as Japan, the United States and Europe. Local sales are carried out through Biogen’s own marketing offices, while in other countries they work through distributors and partners who distribute products to specialized medical institutions. There is another option of sales – through local pharmaceutical companies, but such cooperation is used in those countries where the corporation has just opened its offices and has not yet fully entered the market.
Biogen generates the largest revenue in the U.S., accounting for 62% of total revenue. Two major distributors, AmerisourceBergen and McKesson, make key contributions to sales, and together they own 50 percent of the revenue.
To gain market share, Biogen has completed numerous M&A transactions. The acquisition of IDEC Pharmaceuticals, which took place in 2003, enabled Biogen to become the largest biotechnology corporation in the world. In spring 2006, it became known about the purchase of Conforma Therapeutics, which created drugs against various types of cancer. The amount of the deal was 250 million dollars. This was followed by another major purchase – Fumapharm. This company was interesting due to its medicines for the treatment of psoriasis and various forms of sclerosis.
In 2015 Biogen became the owner of Convergence Pharmaceuticals, having bought it for 675 million dollars.
Biopharmaceutical sector is highly competitive, because to maintain its position in the market, companies must constantly develop innovative drugs and offer new mechanisms to treat certain diseases. Therefore, Biogen is developing in two directions – management and technology. It allows using advanced technologies and improving the processes of product sales and expanding the range of products provided.