Indian Biotechnology has finally arrived on the global scene in 2006. Ernst & Young ranked India third in the region based on the number of biotech companies after Japan and Korea.
The Asia Pacific region recorded an impressive 46 per cent growth and became the first region to reach aggregate profitability in biotech. The fact that nearly half of the over 600 publicly traded biotechnology companies are today located outside the US is another pointer to the growing prominence of Asia and other regions.
Against this backdrop, the Indian biotech sector today comprises over 280 companies generating revenues of $1.5 billion which are estimated to reach $ 5 billion by 2010. The Indian Biotech sector has been growing at a pace of between 35- 40 per cent per annum for the last 3 years. The current fiscal alone saw revenues grow to $1.5 billion from $780 million the previous year. This growth trajectory is indicative of the sector's potential, Dr. Kiran Mazumdar-Shaw, CMD, Biocon Limited told Pharmabiz.
The year saw a number of key developments: Indian mega corporate, Reliance Industries, invested in excess of $100 million in building both manufacturing and clinical development capabilities in Reliance Life Sciences and ended the year by acquiring a 74 per cent stake in a UK Biotech company GenMedix. Earlier, Nicholas Piramal acquired another UK based Biotech company, Avecia to strengthen its innovation and contract research base. In November, Advinus, a Tata backed life sciences company, announced a $150 million drug discovery deal with Merck. In mid September, Indian biotech major, Biocon, launched its Anti EGFR Monoclonal antibody BIOMAb-EGFR, heralding the first proprietary, Biotech drug with a "Made in India" label.
Another landmark investment deal saw French Biotech major Merieux Alliancve pick up a 60 per cent controlling stake in Shantha Biotechnics catapulting Shantha's vaccine capabilities onto the world stage. Pune based Serum Institute continued to dominate vaccine production in the country and announced plans for an IPO in 2007.
The prospects for research services continued to show excellent promise with Syngene, GVK Bio and Jubilant Biosys registering exponential growth.
Whilst the investor community remained skeptical of the Indian Biotech sector, Avesthagen successfully attracted a €20 million investment from a leading European fund.
On the regulatory and policy front, the biotech sector witnessed the implementation of a new regulatory regime proposed by The Mashelkar Committee for Recombinant drugs and the MS Swaminathan Committee for GM crops. The Department of Biotechnology rolled out the Strategy document for the sector which included the launch of the SBIRI (Small Business Innovation Research Initiative) scheme to assist start up enterprises in the incubation phase. The agri-Biotech sector saw a significant increase in acreage for Bt cotton whilst the volatility in oil prices raised the profile of bio-fuels with companies like Praj Industries and enzyme producers Novozymes and Biocon being the main beneficiaries.