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India's biotechnology sector expected to reach US$ 5bn. mark by 2009-10

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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.

 

 

 

 

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