The Indian biotech industry reported revenues of $2.5 billion during the financial year 2007-08. The growth achieved by the industry in the last five years dropped to 20 per cent last year due to appreciation of the rupee and price pressures in global markets. The top 3 companies Serum Institute of India, Biocon and Panacea Biotec, retained their 2007 positions.

The industry's overall revenue grew to Rs 10,273 crore or $2.56 billion in the fiscal ended March 31, 2008 from Rs 8,541 crore or $2.01 billion in 2006-07. In 2007-08, nearly two-thirds of the industry's revenue came from exports. The strengthening of the rupee, therefore, was an important reason for the industry's slow down. The rupee gained 10 per cent to 12 per cent against the dollar last fiscal.

In 2007-08, the industry's investments touched Rs 2,750 crore, an increase of over 21 per cent compared to the previous fiscal. Based on the current trends and the new progressive biotech policy in place, the survey forecast a revenue of about $13-$16 billion by 2015.

The revenues could be higher if some innovative products, which are currently in the pipeline, receive regulatory approval. Dr KK Narayanan, president of ABLE, said, "The inability to sustain the growth momentum can be attributed to several factors. The primary reason being that the revenues from Indian-made innovative biotech products, that can be sold globally, are yet to kick- in."

Pune-based Serum Institute emerged as the top biotech company with revenues of Rs 987 crore for the third consecutive year followed by Biocon, Panacea Biotech and Nuziveedu Seeds.

The survey shows that Hyderabad-based Nuziveedu Seeds with revenues of Rs 303 crore was the number one Bioagri company beating last year's winner Salem-based Rasi Seeds.

The sector had a compounded annual growth rate (CAGR) of 34 per cent. BioServices had the highest CAGR of 63 per cent followed by the Bioagri sector with 61 per cent.

Bioservices services had the highest rate of growth at 43 per cent followed by bioinformatics, which grew 31 per cent to clock Rs 190 crore in revenues.

Two segments of the industry - Biopharma and Bioagri - experienced slow growth during 2007-08. Biopharma, accounting for nearly two-thirds of the industry's revenue, grew by only 16 per cent and contributed to the slow growth of the industry.

"The Biopharma Industry in India is coming of age now and the next 5 years will be an interesting period. While Bioservices will continue to attract significant interest, and Biogenerics exports to the regulated markets are likely to produce a quantum leap in company earnings , there is also a growing club of companies in India that are beginning to develop novel biotechnology based pharmaceutical products for India and the world. Besides healthcare, we also expect Biotechnology to begin to contribute significantly to other areas of the economy such as the Biofuels sector", stated Shrikumar Suryanarayan, director general of ABLE.

Biotech exports grew to Rs 5,733.7 crore in 2007-08. The share of exports in the total biotech pie is close to 56 per cent. Biopharma exports accounted for over 70 per cent of the total industry, while the Bioservices sector had 26 per cent share in exports (Rs 1,502 crore).