Navodaya Chourasia

Swarit Yadav

(14PGP013)

(14PGP051)

Joydeep (14PGP020)
Sindhu NA (14PGP042)
Swapnil Singh (14PGP050)

(14PGP064)

Aleena Chishti
Nirupama Singh
(14PGP088)

Satvik Jani

(14PGP095)

About Millipore
Products primarily based on two separations technologies:
membrane technology and chromatography.
Sales of $750 million. A market leader in $3.4 billion industry.
Customer applications: analysis and purification.
Major markets:

Pharmaceutical
Biotechnology
Life-sciences
Food & beverages
Microelectronics
Chemicals
Environment
Patient care

About Millipore
Profit & loss responsibility organised by:
Chromatography Division
Process System Group
Analytical System Division
They had independent marketing sales, R&D, and manufacturing
operations.
Analytical and Process systems share common manufacturing facilities.
Core R&D:
Supplies short term and long term research support
Provide support for development and some research of their own.
80% of corporations $66 million R&D budget was spent on divisional
product development and rest on core R&D.

LC/MS project
Conventional LC detector were adequate for identifying a spectrum of 25 compound,
Mass specific detectors were enormously cost efficient over a large range, exceeding
75 compounds
Integrated LC/MS system offers advantage to both mass spectrometrist and
chromatographer
Integrated system provide greater efficiency
Offers advantage of mass spectrometry without having to bother mass
spectrometrists.
Two focus sessions to understand customers interest
Chromatographers from pharmaceutical, industrial, chemical and consumer product industries
Easy, straightforward, rugged, table top model, lower price

Scientist in pharmaceutical and biotech industries

Desire for smaller scale LC system
9% interested in smaller scale LC

Waters purchased Extrel, manufacturer of laboratory analysis equipment

How LC/MS was commercialized

Objective of Detector level MS was lowering dependence of
chromatographers on mass spectrometrists.
Market for MSD integrated with LC system was estimated to be $50
million ($110 million expected in 1996).
88% of current LC/MS sales were to researchers and method
developers
Detector level mass spectrometer appeal to QC/QA segment
Potential market identified:

Pharmaceutical
Industrial Chemical
Biopharmaceutical
Environment

Virus Removal Project

1985
Market Research11 promising applications Virus
Removal

1987
Established with division funds

Membrane system capable of removing

viruses
Development Program Program plan , Pert
charts and performance parameters , interaction
with the market

Virus removal process

Inactivation of Viruses
(rendering it lifeless & harmless)

Physical techniques

Chemical techniques

Any virus unaffected by inactivation is dangerous.

Marketing of Viresolve is done on the basis of the fact that it can remove
any unknown viruses.

Physical Removal of Viruses

Most effective manner of physically removing viruses
Viresolves effectiveness is measured in terms of Log Reduction
Value
Viresolve/70s 1992 literature claimed removal of virus to about 7
logs which was far more effective that the competitors.
Competitive Advantage of Millipore- Providing validation of virus
removal
Published proof
Correlation Integrity Test to test each purchased membrane of virus
removal

Competitors- Asahi

Competitors
Asahi

Dead end filtration

technology & Hollow fiber
approach was used.
Integrity test for
verification
The test was destructive

Millipore

Viresolve used tangential flow technology

Correlation integrity test for verification

The test was nondestructive

Commercialization of Viresolve
Market Segmentation: Based on the technology of manufacturing Proteins

Makers of protein
using recombinant
DNA technology
Protein Size: 70000
Daltons
Product: Viresolve/70

Makers of protein
using
monoclonal
antibodies
Protein Size: 1800000
Daltons
Product: Viresolve/180

Blood Processors
Many enquires
Product not yet
developed
Potential product:
Viresolve 3

The Product:
Viresolve is a new product which uses a new technology- tangential flow
instead of the conventional dead-end filtration technology
Viresolve requires optimization to achieve best results
This is slightly complex and may require assistance
Company plans to introduce Installing Specials who will go to every customer,
do the trials and prepare a report

Costs and pricing

Pricing should be based on the benefits that Viresolve can provide
Viresolve is a three part package:
1. A membrane for virus removal
2. Validation data ( Main competitive advantage- It is as important as the
membrane, Millipore can charge a premium for this)
3. Correlating integrity test for validation purposes
Decision to manufacture single-use disposable but slightly expensive
membranes
Price:

Size

Viresolve

Ultrafiltration
membranes

Use

1/3 square foot

module

$500

$500-$600

R&D purposes

1 square foot
$1200
module
Ultrafiltration
membranes
could
be used 10-20 times
10 square
foot
$2000
$1000-$1200
module

Research
Production

Launch
Promotion:
Word of mouth advertising
Scientific presses, conferences, trade press
Hired a PR firm

Preparation of the sales force:

Training and development of the applications specialists- one
representative from each region given specialized training
Preparations of the launch manuals and reference manuals
The U.S launch was postponed
Total of 20 sales Rep dedicated to pharmaceuticals
Next stage: Train the entire US sales force
Another crucial part is conducting the feasibility study

Launch strategy

Phase 1:
Introduction to biopharmaceutical firms in the R&D process to ensure
that there is natural progression to production
Very important phase because if the opportunity is lost then Millipore
would lose the early mover advantage
To handle this challenge hired a R&D engineer to concentrate on R&D
insertion

Phase 2:
Viresolve/70 was at the hardest phase of launch
Because of the size- exclusion technique there was disparity between
protein size and virus size in this segment
Opportunity for dramatic success

Recommendations for Viresolve

Move forward with training of specialists since customer assistance is very
important to ensure the success of the launch
Pricing based on the benefits of the product- It should be higher than the existing
technology
This is important since the target market is not very sensitive to price
More focus on scientific and trade conferences rather than just focusing on Word
of mouth
For the US Launch focus on the product rather validation data since there are no
regulations
Also push more for the 10 square foot module since it can be used in the
production process
Concentrate on the development of Viresolve 3 targeted towards blood
processing industry
Focus on product extensions to ward of obsolescence

THANK YOU