The bilateral trade between India and UK in pharmaceutical, healthcare and life sciences (PHL) is set to witness a surge in the next three years with more interactions happening and a number of ties and investments are in the pipeline.
Clinical trials, production of generics and biotechnology will be the areas of focus, with the trade is likely to grow by 60 per cent over the period. Britain is the fourth largest market for drug manufacturers of India.
Lipoxen Technologies Ltd, the drug and vaccine delivery company, has signed major research and product collaboration agreements with Baxter Healthcare Corp, the Serum Institute of India and National Biotechnologies. A strong delegation from UK recently attended the Bangalore Bio conference while a team of Indian industrialists, under the banner of FICCI, is currently in Britain.
Lipoxen has also finalised an extended agreement with its current partner, the Serum Institute of India, expanding the number of blockbuster drugs. The two companies are collaborating on, and facilitating access to the major Western markets. These products include erythropoietin (EPO), paclitaxel and a pneumococcal vaccine.
The recent collaboration agreement with Baxter Healthcare will focus on an initial seven- month research period to investigate the effectiveness of conjugating Baxter's proprietary proteins with PolyXen, Lipoxen's proprietary technology. PolyXen is a natural polymer (polysialic acid) that can prolong the active life and improve the pharmacokinetics of conventional drugs and biologicals. It is considered a next generation drug delivery technology.
With the healthcare sector in India expecting a double digit growth, the leading players in UK are keen for more investments and ties. Aided by the growth in the pharma industry, the healthcare sector can contribute upto 6.2-8.5 per cent of GDP by 2012 from the current 5.2 share. This has prompted the UK players to set eyes on India, industry observers said.
The current private healthcare industry is likely to grow tremendously, if the health insurance cover is extended more. Only 10 per cent of current population has access to insurance cover, making it another feasible area for the interested UK firms. Besides, medical equipment sector, where 70 per cent of equipments being imported at present, is going to be another key area for the British firms.
The prospects for UK pharmaceutical companies to benefit from research and development as well as contract research and manufacturing investments in India were highlighted as part of a study by the FICCI and Yes Bank. As a result, trade between India and the UK is tipped in the report to jump from £900m (€1.3bn) to £1.5bn pounds by 2010, the study said.
With UK accounting for 50 per cent of Europe's listed bio-science companies, it is going to be a prime destination of growth for Indian companies. Already major companies like Astra Zeneca are in India, and Avestagen in the UK. They are into across the border operations and scientists work together on stem cell research.