Indian Biotechnology Sector Overview

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Indian Biotechnology Sector Overview

Market Size and the Key Opportunity Segments
The Indian biotechnology sector is one of the fastest growing knowledge -based sectors in India and is expected to play a key role in shaping India's rapidly developing economy. With numerous comparative advantages in terms of research and development ( !"# facilities$ knowledge$ skills$ and cost effectiveness$ the biotechnology industry in India has immense potential to emerge as a global key player. The Indian biotech industry grew threefold in %ust five years to report revenues of &'( ) billion in *++,--+$ a rise of -. per cent over the previous year$ according to the eighth annual survey conducted by the /ssociation of 0iotechnology-1ed 2nterprises (/012# and a monthly %ournal$ 0io'pectrum$ based on inputs from over -3+ biotech companies. The biopharma sector contributed nearly three-fifth to the industry's revenues at &'( -., billion$ a rise of -* per cent$ followed by bioservices at &'( 3.) million and bioagri at &'( 4*+.4 million. The remaining revenue came from the bioindustrials &'( -**.3 million and bioinformatics &'( 3+.* million segments. 0iopharma and bioservices sectors contributed 5) per cent and )) per cent$ respectively$ to the total biotech exports. The bioagriculture$ bioindustrials and bioinformatics sectors remained focussed on domestic operations$ bringing in nearly ,+ per cent of their revenues from India. While the industry$ spanning bio-pharma and agri-biotech$ accounted for &'( ) billion$ the e6uipment and ancillary segment contributed around &'( - billion. 7oreover$ as per 8iran 7a9umdar-'haw who is also the chairman and managing director of 0iocon$ which has topped the list of biotech companies in India in the /012 survey$ India is looking forward to achieve &'( 3 billion in revenue this fiscal (*+-+---#. India is also gaining importance as a clinical trial destination. /ccording to a %oint study by an industry body and 2rnst and :oung (2!:# released in /ugust *++,$ the industry-sponsored ;hase II$ ;hase III clinical trial sites in India have grown by --5 per cent during <une *++= and /ugust *++,$ with the country moving from rank -= to -* across the 5+ most active countries. India participates in . per cent of the global ;hase III trials and ).* per cent in the ;hase II trials with industry-sponsored trials having grown by ), per cent >/? during *++4-+=. Major investments Investments$ along with outsourcing activities and exports$ are key drivers for growth in the biotech sector. /ccording to data released by the "epartment of Industrial ;olicy and ;romotion ("I;;#$ the drugs and pharmaceuticals sector has attracted foreign direct investment (@"I# worth &'( -.5. billion between /pril *+++ and 7arch *+-+.

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'ome of the ma%or investments in the sector are as followsA

;anacea 0iotec 1td has bagged a three-year contract worth over &'( ***.). million from &BI>2@ to provide the agency with 2asy@ive vaccine$ a protection against a set of paediatric diseases for *+-+$ *+-- and *+-*. /lexandria eal 2state$ the &'( 3.* billion &'-based company which provides solutions to life science industry$ has decided to set up a biotech research and development ( !"# and incubation facility in ?u%arat. It plans to spend around &'( -+. million for the pro%ect. The "efence esearch and "evelopment Crganisation (" "C#$ which caters primarily to the armed forces$ plans to spend &'( 5).3 million to upgrade and custom-make its existing line of biotech products for civilian use. 0iotechnology ma%or 0iocon has fully ac6uired the %oint venture 0iocon 0iopharmaceuticals from its >uban partner >I7/0. &nder the business restructuring plan$ 0iocon will pick up >I7/0's 4, per cent stake and will make 0iocon 0iopharmaceuticals (00;1# a wholly owned subsidiary of 0iocon.

Tie ups /vesthagen$ a 0angalore-based life sciences firm$ has announced the formation of a <D with 1imagrain$ a @rench international cooperative group. 1imagrain will hold the ma%ority 3- per cent in the <D$ /tash 'eeds ;vt. 1td$ to build an agri-biotech business model for field crops. 0ayer >rop'cience /?$ a subsidiary of ?ermany-based global crop sciences ma%or 0ayer /?$ and ?D8 0iosciences ;rivate 1imited (?D8 0io# of Eyderabad have entered into a research cooperation agreement in the area of early discovery chemistry. 7oreover$ ?D8 0iosciences has also partnered with esearch;oint ?lobal$ the &'based clinical organisation. Together$ the two companies which are full-service contract research organisations (> Cs# will offer access to medical writing$ clinical data management and biostatistics$ as well as 6uicker patient recruitment. 0iocon 1imited$ the country's second largest biotechnology firm has signed a 7emorandum of &nderstanding (7o&# with 7alaysia's 0iotechnology >orporation (0iotech>orp# to explore collaboration and potential investment in 7alaysia's biotechnology industry. 7oreover$ 'yngene International$ the custom research subsidiary of 0iocon 1td$ has entered into a discovery and development collaboration with 2ndo ;harmaceuticals of the &nited 'tates to develop biological therapeutic molecules against cancer. !overnment Initiatives In recognition of the need of training and education for generating interdisciplinary human resource relevant to biotechnology$ the ?overnment of

India and &B2'>C$ have taken a %oint decision to establish the egional >entre for research$ training and education in biotechnology under the

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auspices of &B2'>C. The &B2'>C egional >entre for 0iotechnology is scheduled to come up in @aridabad$ Earyana by the end of *+-+. @urther$ the "epartment of 0iotechnology ("0T#$ ?overnment of India$ has also decided to set up a uni6ue Eealth 0iotech 'cience >luster (E0'># at @aridabad. 7oreover$ the government will fast forward the process of setting up a Bational 0iotechnology egulatory /uthority$ to stimulate public and private investment in biotechnology. 0esides the central government initiatives$ individual states are also doing their bit to promote the biotechnology industry. 8arnataka takes the lead and the state's revised biotech policy offers many fiscal incentives and concession to prospective investors in the industry. /ccording to the 7r 0 ' :eddurappa$ >hief 7inister of 8arnataka$ a bio-venture fund with a seed capital of &'( -+ million will be set up to incubate start-ups by young entrepreneurs. 7oreover$ the state government is setting up -+ biotech finishing schools in association with the industry and academia to create a steady talent pool. 'ector specific biotech parks are expected to be set up at 7ysore$ 7angalore$ "harwad and 0idar in north 8arnataka. 'imilarly$ a bio-cluster will be set up in the 0angalore 0iotech ;ark on a public-private partnership mode. "ooking ahead India is already being globally recognised as a manufacturer of economical$ high6uality bulk drugs and formulations. With a huge base of talented$ skilled and cost-competitive manpower$ and a well-developed scientific infrastructure$ India has great potential to become a leading global player in biotechnology. /ccording to 8iran 7a9umdar 'haw$ >2C of 0iotechnology >ompany$ 0iocon$ and >hairman of the 8arnataka Dision ?roup on 0iotechnology$ the next goalpost that the domestic biotechnology sector has set for itself$ is to reach a turnover of &'( -+ billion by *+-3. 2xchange rate usedA - &'" F 45.+5 IB (as on <une *+-+#

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