Karnataka pharmaceutical, biotechnology and healthcare sector performance has been notable in 2006 in terms of being able to commission world class infrastructure, enter into rewarding joint ventures, product launches and getting approvals from the international and national regulatory authorities.

The pharmaceutical sector in Karnataka ranked 10th in the country growing at a rate of 12.2 per cent during 2006. It contributed to five per cent of the market accounting for Rs 1,350 crore of the total Indian pharmaceutical market of Rs.26778 crore.

For 2006, by and large the show put up by the 214 pharma companies in the State is not so eventful. The achievers were only Strides Arcolab, Medreich, Vetcare, Natural Remedies, The Himalaya Drug Company, and British Biologicals among others.

Growth in the state was largely driven by the performance of the medium-small units through an increase in contract manufacture orders despite the fact that many of their customers made a beeline to government of India's excise free zones at Baddi, Uttaranchal, Jammu & Kashmir.

The problems of excise duty on MRP and manpower crunch continue to bog down the medium-small units. However, we have made strategic investments to succeed, taken judicious decisions to upgrade and improve our financial earnings," stated a section of medium-small units heads.

According to VR Kannan, pharma consultant, the pharmaceutical companies performance was uninspiring and substandard. Large manufacturers and even multinational companies in the State have shown negative or low growth rate. "Even if there was growth, is attributed to the shift in ORG data which is now based on wholesale purchase and consumption as against retail details," he added.

In the biotech sector, Karnataka witnessed growth to a certain extent and much of it came from the 'Big B': Biocon Limited. From its advanced insulin manufacture facility to its launch of India's first monoclonal antibody brand BioMAb EGFR, the Rs 793 crore company went on to register Rs: 463 crore revenues in the half year ending September 31, 2006.

The Rs 19 crore Avesthagen continues its fund raising spree and filing of patent applications. The company intends to go in for an Initial Public Offer (IPO) within 18-24 months, which would provide financial investors with a suitable exit strategy.

The pharma and biotech sector comprising commissioned world class facilities in the state. These included the Biocon SEZ, Jubilant Organosys, Strides Arcolab 'STAR' Hikal production plants.

Healthcare segment in the state displayed a sterling performer in terms of earnings, investments, expansions, new treatment options and clinical trial success Beginning from Wockhardt, Manipal, Sagar, Narayana Hrudayalaya to medium sized hospital like Bangalore Hospital, Agadi Nursing Home, Maiya Nursing Home, Ramakrishna Hospital and small clinics did well. The recent entrant Apollo Hospital, Bangalore is also expected to have a successful experience in the healthcare capital of the country. Factors driving the growth are demand for modern treatment options including minimal invasive surgeries, which are because of awareness and affordability, stated hospital chiefs.