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K'taka most preferred destination for biotech, woos Rs 1,000 cr investment

Nandita Vijay, BangaloreThursday, July 25, 2002, 08:00 Hrs  [IST]

With 60 biotechnology companies having come up in Bangalore alone in the last couple of years, the state of Karnataka is emerging as a hot biotech destination. This perhaps could be the highest number of biotech units located in a city in India. The total investments, which the state has already attracted in biotechnology is around Rs 1,000 crore and the companies together have notched up a sales revenue to the tune of around Rs 500 crore in a two-year period. According to Kiran Mazumdar-Shaw, a leading biotechnology entrepreneur in the State and Head of the Vision Group on Biotechnology in Karnataka, biotechnology is no longer a nascent industry grappling for investments. There are sufficient business-revenue driven models in the State in pharma biotech, bioinstrumentation, bioengineering, clinical studies, enzymes, human health, vaccines, diagnostics, contract research, veterinary, biofertilisers, bio-pesticides, bioremediation and agribiotech, she noted. The 12- member Vision Group on biotechnology in Karnataka is of the view that bold measures have to be taken by the State government to capitalise on the inherent strengths of biotechnology sector. The Millennium Biotech Policy announced on February 24, 2001, stipulates tapping investment opportunities in biotechnology, genomics, Bioinformatics, Biofuels and contract research. Further, it features a set of incentives and concessions to attract investments. In addition, it provides specific infrastructure as well as enhance human resources for the development of biotechnology, encourage the growth of Bioinformatics, and provide appropriate institutional framework to achieve all these objectives. According to officials in the Karnataka government, Bangalore is expected to make it big in biotech business and is all set to become the nerve centre of many start-up companies. The State has a focussed approach in biotechnology. The advantage of information technology has given a fillip to the sector. Another advantage for Karnataka is that its capital Bangalore is the base of science and technology research institutes, notable among being the world''s 18th best educational and research institute the IISc (Indian Institute of Science), NCBS (National Centre for Biological Sciences) and the JNCASR (Jawaharlal Nehru Centre for Advanced Studies and Research) which have helped in the training of scientific manpower which gives a fillip to the biotech initiatives of the State government. Karnataka government''s Institute of Bioinformatics and Applied Biotechnology (IBAB) started in association with ICICI Ventures at the International Tech Park, Whitefield in the outskirts of Bangalore has commenced its one-year post- graduate [PG] course early this year. Karnataka has the right mix of talent and technology for biotechnology to have a dominant position like the other knowledge driven industry IT, noted an analyst. Almost every company seems to have got on the right track to explore opportunities in the global and domestic market for outsourcing their facilities for research/ manufacture and marketing alliances. Although there are only a handful of major biotechnology companies in Bangalore: Biocon India Limited, Bangalore Genei Pvt. Ltd., Astra Zeneca India Research Centre, Bhat Biotech, XCyton Diagnostics Pvt. Ltd. Sami Labs and Vittal Mallya Scientific Research Foundation, each of them have created a presence in the lucrative niche. The state''s software capabilities provide the credibility for overseas companies to outsource Bioinformatics skills. The combination of skills in IT and BT helps to augment high-speed data mining of both genotypic and phenotypic information to evolve new forms of medical diagnostics and therapies. Several companies have decided to invest Bioinformatics. Strand Genomics is perhaps the most advanced in this new realm and are in the business of developing proprietary and customized algorithms for medical and medicinal research. Sys Arris Software is a global solution provider developing several biotech software products. GENOMED is another such initiative in the genomics segment. Clinigene International has also developed a strategy to discover novel "Biomarkers" through clinical data analysis on a Bioinformatics platform. Other small start-ups such as Avesthagen, CDC Linux etc. are offering Bioinformatics services for several plant and pharma research programmes. The government of Karnataka is allocating Rs. 30 crore which has been earmarked for setting up the Biotech Park which will have the Institute of Bioinformatics and Applied Biotechnology relocated from Whitefield, an incubation facility where labs and start-up companies, auditorium, office complex in it where the Patent attorneys and consultants will be encouraged to locate their offices here. "We already have quite a few companies which will be locating themselves there - Astra Zeneca Research will set up its library and conferencing facility, Biocon India for research related activities, Avestha Gengraine Technologies, Sartorius India (bio-fermentation major) and Ashoka Trust engaged in biodiversity activity. "The plots will all be half acre from the earlier plan of one acre to encourage small companies to set up their base here, informs Shaw. About manpower in biotechnology, Shaw said that in spite of academic qualified personnel, there is a lack of trained manpower and companies will need to invest in training in their area of business. Shaw is of the view that the present biotech education should shift towards web-based learning to keep abreast of knowing what is contemporary and the latest trends. "We need to get a lot of contemporary knowledge. There is a lot of interest in biotechnology courses at the graduate level and there is a lot of awareness among parents about the potential job opportunities in biotechnology." The State''s initial game plan to position biotech as a knowledge-driven sector on similar lines of information technology could hold promise with the Karnataka chief minister S M Krishna asserts that while it has created lakh of jobs for the engineers in the country, biotechnology has the capability of creating millions of jobs for scientists in chemistry, botany and zoology graduates. The opportunities in the field: According to Shaw, the promising opportunity for Indian companies are Genomics, HTS (high throughput service) and other informatics-based research. The scientists can make the best use of the increased R&D programmes through collaborations and contractual R&D initiatives with smaller biotech companies and CROs, noted Ms. Shaw. In the human healthcare sector, Indian companies have a chance to unravel high value IPR (intellectual property rights) with disease-linked genes and the diagnostic and therapeutic products emanating thereof, said Shaw

 
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