Indian biotech sector is now looking upwards because of a positive economic outlook, conducive research environment and increasing venture capital support. The sector is presently valued at Rs 6,521 crore ($1.45 billion) with a growth of sales growth of 37.42 percent. The exports contributed Rs 3,357.17 crore and the domestic sales generated is Rs 3,163.83 crore. There are around 530 biotech companies in the country.
"India is transforming rapidly in life science with the increasing availability of skilled and quality workforce. The number of returning scientists has been adding to skill base, thereby improving the standards of bio manufacturing. The clinical data research is receiving more recognition. India's drug development path is improving by rapid strides, stated Kiran Mazumdar-Shaw, chairman and managing director of Biocon and chairperson of Vision Group of Biotechnology in Karnataka.
Leading bio-pharma companies are Serum Institute, Pune, Biocon Bangalore, Panacea Biotech, Indian Immunologicals, Hyderabad, , Shantha Biotechnics, Bharat Biotech, Avesthagen, Novo Nordisk, Bangalore, Sami Labs, Bhat Biotech, Biological Evans GVK Bio Sciences, Wockhardt, Bharat Serums & Vaccines and Aventis.
According to the figures from the BioSpectrum survey done in association with the Association of Biotechnology Led Entrepreneurs (ABLE), Bio-Pharma sector, which covers vaccines, therapeutics and diagnostics registered a turnover of Rs 4,708 crore ($1.05 billion) with 31.88 percent growth. The sector accounted for 72.20 percent share of the total biotech industry value of Rs 6,520 crore. Bio-Agri is the fastest growing sector with 81 percent growth and revenues of Rs 598 crore. Bio-Services sales is Rs 719.5 crore with a 69.29 percent growth holds a 11.03 percent share of the industry. Bio-Industrial sales was Rs 375 crore with a growth of 17.19 percent and bioinformatics with sales of Rs 120 crore and growth of 20 percent.
International bio-partnering has already gained visibility in the country and especially in Bangalore where several collaborative partnerships have been initiated. Almost all big pharma and a number of biotech companies are outsourcing R&D services from a large number of research services companies from India and China," stated Dr. Villoo Morawala Patell, founder and chairman of Avesthagen.
There has been a visible support from the department of biotechnology towards the biotech sector and the looking at the number of the New Millennium Indian Technology Leadership Initiative (NIMTLI) projects there is a clear indication that the growth is perceptible and revenue generation is visible, stated Prof. G Padmanabhan, scientist emeritus and former director of Indian Institute of Science.
The biotech sector will build new business models based on niche markets and steer away from "blockbuster models"; India's role would be key to affordable drug development; bio-partnering would proliferate between US/ European and Indian companies, pointed out scientists from the National Centre for Biological Sciences.
One of the recent notable developments is the Mérieux Alliance strengthening its presence in Asia by acquiring a majority stake in Shantha Biotechnics Limited, a Hyderabad bio-pharmaceuticals company which specialises in the development and production of vaccines, therapeutic proteins and monoclonal antibodies.
This Indo-French alliance is likely to favour synergies in terms of research and clinical development between the group's companies. Shantha Biotechnics will also have access to the support provided by Mérieux Alliance's international network. The partnership with Shantha Biotechnics will see the development of prevention, diagnostics, prognosis, new therapies and clinical monitoring in the area of infectious diseases.
In September 2006, Syngene International Private Limited, a wholly owned subsidiary of Biocon Limited and Innate Pharmaceuticals AB, Umea, Sweden had concluded a cooperation agreement to jointly develop, manufacture and market virulence blockers to counteract bacterial diarrhoeal disease. Virulence blockers are a new class of drugs that could become an alternative to antibiotics.
In November 2006, Manipal AcuNova a clinical research organisation has teamed up with teamed up with Nordiag, a French cancer diagnostics company to build its competency around the biomarkers. Another landmark in the biotech sector in June 2005 was the launch of India's first monoclonal antibody brand BioMAb EGFR manufactured by Biocon was dedicated to the nation by President Abdul Kalam.
Indian capability
India is now a biotech research workhouse. This is because of the presence of premier institutes like the All India Institute of Medical Sciences, Tata Institute of Fundamental Research, Central Drug Research Institute, Centre for Cell and Molecular Biology , Indian Institute of Science [IISc], Jawaharlal Nehru Centre for Advanced Scientific Research [JNCASR] in the IISc campus, National Institute of Mental Health & Neuro Sciences [NIMHANS], National Centre for Biological Sciences (NCBS) which embark on a variety of research studies from the industry both in India and abroad, stated Dr. Shama Bhat, managing director, Bhat Biotech.
Indian companies are concentrating a lot of drug research and primarily clinical research is getting momentum, stated Dr. MRS Rao, scientist, Jawaharlal Nehru Centre for Advanced Scientific Research.
The Innovations and Development Committee at IISc is the focal point between the industry-institute to encourage biotech companies. "The synergy between the IISc faculty and biotech researchers is an ideal mix the development of projects," informed Prof. D Narasimha Rao, Chairman, Division of Biological Sciences and Professor, Department of Biochemistry.
The country has a solid intellectual base and a conducive research environment. Going by the research work and the industry-institute collaborations companies like Panacea Biotech, Serum Institute, Pune, Biocon, Sami Labs, AstraZeneca, have been proving their mark.
Karnataka a proven bio active state:
While most of the states in the country are active in biotechnology there have been particularly impressive strides in the sector from the southern Indian state ofKarnataka in this sector. To begin with the state has half of India's biotech companies. The 265 units include biotech, contract research companies, bio-pharma information technology related services and research centres. The state is also garnering over 50 percent annual growth rate, which is more than the national rate of 40 percent. It has also attracted the maximum venture capital funding in the country in 2005 which is around $100 million. Bangalore is now the fastest growing 'bio-cluster' in India. The state's biotech sector has received an investment of $400 million between April 2004 and March 2005 with 18 companies setting base here. In 2003-'04, of the 25 biotech companies that set up shop in the country, 17 were located in Bangalore. Of the 265 biotechnology companies in the country, Karnataka's share is 131 companies. Out of the 131-biotech companies in the state, 121 of them are located in Bangalore, the capital city.
"The interests of a major portion which is around 30 per cent of biotech companies is on bio-engineering. Around 18 per cent focuses on agriculture and 17 per cent on research and 13 per cent on bioinformatics, informed MN Vidyasagar,secretary information techno-logy and biotechnology, Government of Karnataka.
Foreign partnerships:
In the last one year, the sector has witnessed several strategic alliances. Biocon itself has initiated partnerships with Vaccinex, US, CIMAB, Cuba, Nobex, USA and Scirex Corporation, USA. Some of the other notable partnership by biotech companies in Bangalore include Avesthagen alliance with AstraZeneca, Genetic ID, Biomerieux. Kshema Technologies with MDS Sciex for bio-instrumentation and Manipal AcuNova a clinical research organisation with Nordiag, a French cancer diagnostics company.
The key reasons for alliances with global majors are the capability and reliability in project delivery. India has a large scientific pool and their experience and exposure to international arena provides a big advantage for global tie-ups, stated a section of scientists from the Indian Institute of Science.
Bangalore is gaining critical mass and a concentration of biotech firms and associated facilities are beginning to appear. The city is also on the global biotech map because of the annual Bangalore Bio event. Four editions of the event have helped the state double the biotech industry growth rate and turnover from Rs 250 crore in 2000-'01, Rs 500 crore in 2001-'02, Rs 700 crore in 2002-'03, Rs 900- 1000 crore in 2003-'04 and 1200-1500 crore in 2004-05. The figures for 2005-06 are being tabulated. According to Shaw, "There is an explosion of knowledge and biotech R&D needs to capitalise on the potential. We also see a major transformation in the outlook towards investments in R&D unlike the past. The trend among pharma companies now is to take up biotech research after the success of Shantha Biotech, Dr. Reddy's and Ranbaxy who have proved that it is lucrative to develop lead compounds. "What we have noticed is the willingness to invest," she added.
"The expertise in information technology and the impact of the biotechnology efforts has resulted in a growing demand for scientists from Karnataka with a background in IT for bioinformatics projects, while in research projects too many scientists from Bangalore are hired to conduct clinical trials and research process outsourcing, stated D A Prasanna , vice chairman & managing director, Manipal AcuNova.
Expertise and experience:
Indian biotechnology industry is expected to generate over a million jobs in agriculture, pharmaceuticals and medical segments by 2010. Despite facing shortcomings in the form of inadequate infrastructure facilities and skilled labour, the biotech industry in the country is poised to make big strides.