Determined to explore new research and development horizons, Karnataka pharma-biotech companies is in the process of applying latest technologies to accelerate the research process. The city has a right environment for research, according to pharma-biotech R&D experts.

Biocon India Limited, Bangalore Genie, Gangagen Biotechnologies, Micro Labs, Vittal Mallya Research Foundation, AstraZeneca Research India and Sami Labs, have made some interesting research efforts in genetic engineering, fermentation products, monoclonal antibodies and therapeutic use of ribozymes like the big players- Ranbaxy, Dr. Reddys Labs, Shantha Biotech, Bharat Biotech, Biological Evans, Serum Institute, Sun Pharma, Wockhardt, Panacea Biotech.

What makes Bangalore an ideal location for research is the presence of an intellectual base, points out Goverdhan Mehta, director, Indian Institute of Science.The presence of leading Government funded institutions like the IISc, National Centre for Biological Science [NCBS] and the JNU Centre for Advanced Studies in Biotechnology is a catalyst for pharma biotechnology R&D programmes.

The Society Innovations and Development Committee at IISc is the focal point between the industry-institute to encourage pharma-biotech companies."The synergy between the IISc faculty and pharma/biotech researchers is aimed at catching up with the global competition where the IISc has the expertise," informs Prof. S Mohan, chief executive, SID," IISc.

"India has cost competitiveness in R&D, speed and creating value in its innovation programmess are far from optimal," says Kiran Mazumdar-Shaw, managing director, Biocon India Limited and head of the Vision Group on Biotechnology in Karnataka.

"Pharma companies are looking at biotech as a facilitator for pharma R&D," said Dr. P Babu, managing director, Bangalore Genie.

According to Dr. PV Subba Rao, scientific director & CEO, Vittal Mallya Scientific Research Foundation,"The current pace of research is slow and needs to pick up. We have an explosion of knowledge and pharma-biotech R&D could move forward. Pharma companies have seen the potential and are opening up biotech research wings to capitalise in pharma-biotech research."

Companies are focussing on chemistry and looking at nature for lead components in drug discovery like the biotech scientists in the West who study at least 10,000 components a day for likely targets in anti-viral, anti-bacterial anti-cancer drugs."India has a lot of natural components and our biotech researchers should capitalise on it," added Dr. Babu.

"There is change in attitude 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," says Kiran Mazumdar. "What we have noticed is the willingness to invest," she adds. Incidentally, Biocon Hyderabad-based Shantha Biotechnics have started a joint venture -Biocon-Shantha Biotech Limited for the manufacture and marketing of Recombinant Human Insulin.

There have been substantial research investments from Sami Labs, Astra-Zencea Research Foundation India and Gangagen Biotechnologies. Gangagen Biotechnologies has an investment projection of Rs. 5 crore to develop bacteriophages for the treatment of antibiotic resistant infections and will later have a large library of appropriate phages. Sami Labs has allocated Rs. 8 crore and has planned an additional Rs. 3 crore in its biotechnology plant at Nelamangala in the outskirts of Bangalore for research in fermentation and plant tissue culture.

AstraZeneca Plc has invested $10 million for its research facility in Yehalanka, near Bangalore and in addition$5 billion will be used for finding a new tuberculosis treatment for the drug resistant disease.

Drug research, unlike contract research is still not as widespread in Bangalore as in Hyderabad, Mumbai and Ahmedabad, says Dr. Babu. Pharma-biotech companies abroad are impressed at India''s scientific pool and low cost of labour and have given research contracts to IISc, Biocon and AstraZeneca Research Foundation India in molecular biology, bioinformatics and custom synthetic chemistry. Assignments for Biocon includecloning of specific disease targets, setting up screening methodologies, producing custom proteins through r-DNA or synthesising some specific chemical derivative not available elsewhere.

Bal Pharma, which is a diabetic and cardiovascular drug major in Karnataka has started a fully owned subsidiary company Novosynth Research Laboratory is formed to take up contract research in a big way. Novosynth Research Laboratory is proposed to take up contract research in bulk drugs especially for the overseas markets with an investment of Rs. 5 crore. It plans to generate business to the tune of $1 million in the next four years from contract research and the revenue generated will be pumped back into its research and development programmes. "The confidence of multinational companies in contract research with Indian companies has increased and they are identifying players for the same," said Shailesh Siroya, managing director, Bal Pharma.

Karnataka Biotech Policy is a forward-looking one but pharma biotech developments are still in a formative stage, according to industry experts. In spite of tax write-offs and initiatives for setting up Biotech Parks, there are no grants from the government for the private biotech ventures who make up the backbone of research findings.

Infrastructure, money and manpower are the major issues affecting the progress of biotech research. There is a reluctance to spend both by the government and private sector. According to Shrikumar Suryanarayan, president, R&D, Biocon India, it is the lack of good intellectual property regime in the country, which is affecting research progress. "The venture community needs to look at pharma-biotech research with a longer time horizon than what they are used to in the information technology industry," says Dr. J Ramachandran, president, Gangagen Biotechnologies.

Several opportunities will open up in the global market for India with the patent regime in 2005.India''s traditional expertise in synthetic chemistry and reverse engineering will be very useful for development of small molecules.Biotech companies are looking atprofitable business ventures to develop bio-pharmaceuticals, says Dr. Babu."All these years pharma-biotech industry had been at the receiving end. From 2005 we will give out our expertise," informs a scientist.

India and Bangalore in particular needs to catch up with the enzyme development of the West. Dr. Babu feels the need for an active group working on biotechnology drug research. The future looks bright if companies co-ordinate and generate a momentum."Right now Chinese are producing biotech drugs and we are watching. It is time we team up and act," he added.

Scientists and analysts opine that the present scene in Bangalore is gloomy but the research community here is hopeful that there is light at the end of the tunnel. There are several Indian scientists abroad who are willing to return to India but are sceptical about the limited opportunities and lack of intellectual freedom.