Pharmabiz
 

An upcoming biotech hub

Anupama BharathThursday, May 17, 2007, 08:00 Hrs  [IST]

Gujarat is one of the most prosperous states in India with a gross domestic product (GDP) of US $38.4 billion. On a standalone basis, the state accounts for 6 per cent of the country's GDP. Gujarat is home to some of the largest businesses in India, including textiles, engineering, chemicals, petrochemicals, pharmaceuticals, dairy, cement and ceramics and gems and jewellery. The state can also boast of having world-class production capabilities in all these areas. The State has 41 ports that handle most of the cargo in the country, including India's only chemical handling port. The port for chemicals is located at Dahej, in Bharuch district. Though Gujarat accounts for only 5 per cent of India's population, it generates 16 per cent of the country's industrial production. The state has shown an annual average growth of 9 per cent and an average industrial growth rate of 15 per cent. The state is characterized by: #. Political and economical stability #. Well-defined industrial policies #. Well-known research institutions #. Enthusiastic and responsive corporate sector #. Population with rising disposable income The biotechnology industry in Gujarat comprises of 40 biotechnology companies and 66 support organizations. It houses some well established industry players like Intas Biopharmaceuticals, Bayer Crop Sciences, Concord Biotech Limited, Maps (India) Limited, Quintiles Spectral (India), Chiron Behrings Vaccines India Pvt. Limited, Zydus Cadila Research Center and Span Diagnostics. Some of the country's well-known knowledge centers such as M.S University at Baroda, Cancer Research Institute are feathers in the cap of the Gujarat. Rationale for focus on biotechnology Gujarat has ensured better food, health, environment and socio-economic well being of its population and is constantly striving for the betterment of these basic needs. Biotechnology, the next wave of knowledge taking over the world, offers a promise of better quality of life, an improved environment, greater productivity, wealth creation, skilled job opportunities and increased competitiveness. All of these ultimately lead to higher economic growth. The opportunities that biotechnology brings forth to Gujarat's established sectors are: #. Bio-polishing and de-gumming with respect to textiles #. Bio-polymers, bio-fuels and bio-remediation in chemicals and petrochemicals #. Phytopharming, tissue culture, bio-pesticides and bio-fertilizers in the food and agriculture industry #. Bio-pharmaceuticals in the pharmaceutical industry It can be seen that biotechnology, apart from being a revenue generator in itself, also has the ability to boost ancillary industries. With Gujarat recognized as one of the key biotech clusters in the country, established companies in this sector are expected to generate more revenues. In a sense, biotechnology can be referred to as a strategy initiative by the state to milk the existing competitiveness. State Initiatives The Gujarat Biotechnology mission: Gujarat is one of the few states that has a clear-cut state biotechnology mission. The broad objectives of the mission are: #. Strive to become a major global player in biotechnology in terms of capabilities, strengths, products and services #. Strive towards new developments and improvement of existing agro-food resources, processes, products etc, employing biotechnology methods #. Strive towards a disease-free environment through development of prognostic, diagnostic, preventive and remedial healthcare solutions based on conventional and modern biotechnology against major diseases affecting the citizens of Gujarat #. Venture to achieve ecologically sustainable, safe and clean environment for the citizens of Gujarat #. Attempt to achieve progressive growth in production and commercialization of bioproducts, bio-processes and bio-services #. Strive for effective conservation of natural bio-resources and biodiversity #. Endeavor to make Biotechnology, which is aimed to be the tool for socio-economic development of the state, acceptable and popular in the society existing in Gujarat #. Realize the true potential of the fundamental aspects of biotechnology and work towards it aiding the intellectual pursuit #. Promote modern biotechnology with precaution, being aware of not only its benefits but also its risks The mission is designed in such a way that roles and responsibilities lie on all stakeholders of the biotechnology industry. The responsibility of the government is to evaluate the potential of new and modified products for safety, support the development and application of the scientific knowledge base and facilitate the access to information and growth liaisons. Private sectors such as banks, businesses and industry share the responsibility of commercialization, collection of funds, promotion of products in national and international markets and meeting customer needs. The thrust areas of this mission are agricultural biotechnology, industrial biotechnology, marine and environmental biotechnology, bioinformatics, medical biotechnology and contract research. Each of these sectors would have specialist heads. These specialists are expected to report to a mission director who ensures that the activity in each of these areas is in sync with the policy objectives. The mission is an effort of the Gujarat Government to provide its stakeholders a view of how the state plans to become a biotechnology hub in India. The Gujarat Chemical industry is one of the oldest in India and it contributes to 40 per cent of the country's pharmaceutical production output. As the Gujarat Chemical industry and biopharmaceuticals (that is, healthcare/medical biotechnology) account for 72 per cent of the biotechnology revenues, most of the pharmaceutical companies are entering into biopharmaceutical space. However, Karnataka and Andhra Pradesh have superseded this pharmaceutical hotspot as a biotechnology hub. This mission along with other initiatives is set to woo more investors into the Gujarat biotechnology industry. Other initiatives As of 2006, the number of biotechnology companies in India was estimated at 280. Gujarat's biotechnology players constitute 14 per cent of the Indian biotechnology industry. Some of the initiatives by the state to enhance its capabilities in biotechnology are: #. In order to meet the talent requirements that future investments in Gujarat biotechnology will create, the state has started undergraduate, postgraduate and even doctoral programs in its thrust areas of biotechnology in over 11 of its universities and over 6 research institutes. It is estimated that approximately 4,000 undergraduate students, 1,000 post graduate students and 60 doctoral students from these institutes were added into the nation's talent pool in 2006 #. Presence of the biotech cluster at Ahmedabad and Vadodara, which is well connected to surrounding cities #. Proposed public-private venture, which is set to cover 700 acres. The venture plans to connect all undergraduate, postgraduate programs and R&D organizations into a network chain to foster innovation. The initiative is expected to herald the state's capabilities in R&D apart from manufacturing #. The state is working to frame an appropriate biotech policy for the adoption of existing bio-techniques as well as promising technologies of the future such as nanobiotechnology, genetic diagnostics and stem-cell research #. Other than these policies that specifically cater only to the biotechnology segment, there exist various benefits from existing policies related to infrastructure, power, research and technology and networking and marketing #.It has policies such as fast track clearance for projects over and above a certain limit, an independent and functional regulator for the electricity sector and accessibility in terms of roads, railways, ports and airports Waiting its turn Gujarat is set to be the next biotechnology hub for reasons: #. It has the supporting infrastructure to back the biotechnology industry #. It has world class manufacturing units to manufacture quality biotechnology products #. Biotechnology R&D in the state is set to increase with inter and intra industry networking #. Its reputation for encouraging entrepreneurship along with its plans for various biotechnology parks will serve as incubators for future biotechnology leaders #. The trend of pharmaceutical companies diversifying into biotechnology to keep pace with the global healthcare scenario is bound to prove advantageous for Gujarat, as it is known to provide affordable drugs to the nation. #. The state has already been in biotechnology for a number of years, apart from being one of the first states to adopt agricultural biotechnology #. The state has also seen an increase of investment in its IT sector, which will open horizons for Bio-IT in the future Gujarat is all set to put itself on the national (and possibly the international) biotechnology map by promoting scientific values and interests, providing foundation for inter and intra-sector relationship, fostering partnership with stakeholders and establishing transparent processes. (The author is Research Analyst, Healthcare Practice, Frost & Sullivan.For eedback / enquiries contact sthomas@frost.com)

 
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