India
May 6, 2007
The domestic biotechnology sector
which closed at US$ 1.5 bn. Mark in 2005-06 is expected to reach
US$ 5bn. Mark by 2009-10 with a consecutive CAGR rate of 35.1%
in view of its potential growth factor, according to
Associated Chambers of
Commerce and Industry of India (ASSOCHAM).
Biotechnology by definition is the exploitation of biological
process for industrial and other purpose and currently India has
more than 300 biotech firms focusing on different aspects of
value chain and their number is going to be more than double in
next 3-4 years, adds ASSOCHAM findings.
In a Paper brought out by ASSOCHAM on ‘Biotechnology Future’ it
has been pointed out that although clearly much smaller in size
than the IT, BPO sector, the Indian biotech sector is witnessing
similar growth and growth prospects. For instance during FY
05-06, the Indian biotech sector closed in on the US$ 1.5 bn.
Mark and grew by 35% for the second year in a row.
Releasing the findings, ASSOCHAM president, Mr. Venugopal N.
Dhoot said, “Bio pharma in 2005-06, the largest segment of
biotech industry grew by 32% to exceed US$ 1 bn. Exports were at
US$ 763 mn., and accounted for 52% share of total industry’s
revenues. Bio pharma accounted for 75% of the total exports and
70% of domestic sales as per ASSOCHAM.
Agri biotech and bio services are registering the fastest
growth. Investments in the sector have crossed US$ 360 mn. in
2005-06, growing 36% over the previous year. In view of its
growth prospects, ASSOCHAM paper has projected that the biotech
industry is expected to reach US$ 5 bn. Mark by 2010.
The Paper also points out that India has more than 300 biotech
firms focusing on different aspects of the value chain, however,
about half of the revenues are concentrated with the top 10
companies. Focus area of certain leading companies in India
suggests that vaccines and bio-generics are the common areas of
interest among leading biotech companies such as Bharat Biotech,
Biocon, Dr. Reddy’s Lab, Panacea Biotech, Serum Institute,
Shanta Biotech, Workhardt and Zydus.
Referring to investment in domestic biotech industry, Mr. Dhoot
said that investment in the sector in India has been booming and
exceed over US$ 700 mn. In next 3-4 years as series of joint
ventures will come up for application of biotech not only in
knowledge based industries but also agriculture, horticulture
and viticulture.
The biotech sector would have the potential to attract funding
from international agencies such as World Bank and International
Finance Corporation, the Banks, Ventures Capitals, Private
Equity Arm says the ASSOCHAM paper.
The Emerging Opportunities in Indian biotech industry will
advance in key competitive niches as market trends are catering
more growth opportunities. The country’s old patent regime
fostered a skilled generic industry and many Indian firms are
well-positioned for the coming ways of patent expirations.
Action so far has been in pharmaceuticals, but several biologic
drugs are expected to go off patent soon, including such
blockbusters such as Epogen, Novolon and Humulin. Indian biotech
companies are gearing up to garner outsourced Drug manufacturing
contracts and companies such as Biocon, DRL, Wockhardt, Panacea
Biotech and Shantha Biotechnics are already preparing generic
versions of biotech drugs. The focus on this sector would be
primarily in product categories such as-EPO products, Human
Insulin, Interferons, G-CSF. |
|