The number of biotech business ventures in India has risen by nine times to reach 270 in mid-2004 compared to just 30 in 2001, as per a latest study conducted by the Singapore-based biotech and healthcare consultants, BioEnterprise Asia. Accordingly, India has jumped to sixth position in its ranking in terms of total number of bioventures in 2004 compared to eight in 2001.

Biotech ventures in China have increased to 1,000 (third in ranking) in 2004 compared to about 100 in 2001. However, the total number of bioventures in US and Europe has remained stagnant at 1,500 and 1,800 during the last three years, said the report.

Out of the 270 biotech ventures in India, about 130 are relating to healthcare-based biotech segment, the balance being agro and food-based biotech ventures.

The mushrooming healthcare-related biotech ventures are being promoted by individuals, pharmaceutical companies (both private and foreign), and scientific research institutions. About 75 per cent of investments are made in manufacturing of biotech products (recombinant proteins, diagnostic products, and drug delivery systems). The remaining in R&D by pharma companies and research institutions.

"There is a growing recognition of biotech as the next big thing, and hence growing entrepreneurial interest in establishing start-up enterprises in the sector," explains Dr. Gurinder Shahi, CEO, BioEnterprise Asia, and the brain behind the report.

According to him, a large number of well-trained and highly skilled "managers of science" of Indian origin who have worked in best of institutes in Asia, US and Europe are keen to bring the value and benefit of new technology insights and capabilities to India. These individuals have invested their ideas in startups or are already heading key positions in biotech divisions promoted by existing pharma companies like Dr. Reddy's Labs and Ranbaxy.

These biotech ventures off late are finding no trouble in getting funds. "Many of these startups are being financed by those who got rich from the hi-tech/dot.com bubble, traditional industries and others who want to be part of the next technology revolution," said Dr. Shahi.

After its successful investing in the Indian IT industry, Venture Capitalists across the world are curious to invest in India's biotech industry. "Major VCs and investors around the world have recognized the value and opportunity for doing business in China and India. India is quickly becoming a focus of investment interest, and is fast catching up," he said.

The traditional pharma companies are investing in biotech activity by way of internal accruals, debt or by public issue. "The successful IPO of Biocon is a testimony of the fact that Indian investors are beginning to view biotechnology as the next big thing," said Dr. Shahi.

There is an increased investment by leading research institutions in the country like the IITs, university labs, IIS, CSIR, DBT, and TDB. There is also a growing industry-academia co-operation in the areas of research and in licensing of new researched products.

India is going to enforce its IPR laws after 2005. Considering its low cost advantage, many foreign companies are in talks to set up their manufacturing, research and clinical trials base in India, he said.

In 2001 the total global biotech market stood at $ 40 billion (Rs. 1,80,000 cr). The markets for US, South Asia and East Asia were at $25 billion, $ 1.4 billion, and $ 4.1 billion respectively.