Indian biotech sector will need government assistance to take the industry to the next level of growth.
The business of biotech is driven by innovation and this is where the Union government will need to ensure not just early stage funding but for late stage financial support also which should be backed by the requisite regulations. There is need to create a framework of guidelines for bio-research and bio-manufacturing, expressed experts at the Bangalore India Bio 2012 which concluded here on February 8.
“Only investments in innovation can trigger innovation and foster entrepreneurship in the biotech sector. The industry needs to create a market for innovative biotechnological products, mechanism to mould young entrepreneurs, generate contributions from the government to provide the required capital to support risks in investments. Only then we can create the infrastructure, mentorship, technology for cost-effective productivity,” stated Sujay Shetty, executive director- India, Pharma Life Sciences, PricewaterhouseCoopers Private Limited.
“There is need for fund access to support the innovative and young entrepreneurs. The strategy is to create market mechanisms for growth,” he added.
So long seed funding from the government has helped the sector to grow. But we need a 10-year funding cycle agenda to assist companies not just in the early stage of product development but in the later stages of product marketing also, pointed out Dr Vijay Chandru, president, Association of Biotechnology Led Entrepreneurs (ABLE) and chairman and CEO, Strand Life Sciences.
Utkarsh Palnitkar, managing director, Pluripotent Capital and Executive Director, Centrum Capital Ltd said that the main objective of innovation was to come up with better operating management systems which could bring a change in a bigger way in the field of biotechnology. Therefore the big task for the government would be to focus and improve the tax benefits for innovative entrepreneurs and investors.
“Promoting an entrepreneur in a creative and in an efficient way was innovation. Hence, the government will need to plug the gaps in the areas of operational skills, technology infusion and networking support with the required funds to facilitate innovation,” stated Deepanwita Chattopadhyay, managing director and CEO, IKP Knowledge Park.
Dr Tania Fernandez - director - India, Burrill & Company, USA classified innovation as disruptive innovation and implementational innovation. The possibilities in framing guidelines would trigger innovations among the entrepreneurs. Indian biotech entrepreneurs will need to consider business model of Taiwan or Malaysia to bridge the gap between technology and finance.
The Indian biotech needs an angel investor and tax concessions to help ignite entrepreneurs with innovation, said Kiran Muzumdar-Shaw, chairperson Vision Group on Biotechnology and CMD Biocon Limited.