Jones Lang LaSalle
Indian Biotech industry to cross $ 5bn by 2010, study says
Monday, April 17, 2006 17:00 IST
Our Bureau, Mumbai
Inherent 'India Advantages', growing investments by established business houses, favorable government stance and significant interest of the international community are likely to ensure that the Indian Bio-Technology sector will cross revenues of USD 5 billion in the next four years, according to a research report by leading investment bank Avendus Advisors.
The report points out that India has inherent strengths like a large pool of qualified scientific talent, several research labs and R&D institutions and strong IT skills. The country also possesses rich human, plant and microbial bio-diversity offering a great base of genomic and pharmaco-genomic studies for drug discovery.
Growth in the sector is expected to come on the back of increased partnering activity, transition to a product model, growth in bio-generics market and government initiatives to encourage investments and expansion in the sector, the report says.
Besides revenues of USD 5 billion, by 2010, the biotech industry in India is expected to generate over one million skilled jobs and have a 10% share of the global industry, the Avendus report says adding, "India is now among the top five biotechnology hubs in the Asia Pacific region in terms of attractiveness for investment in this sector."
The report points out that global pharmaceutical and biotech industry faces several challenges including increasing regulatory restraints, stagnant product pipelines and high R&D costs. Against this backdrop, global pharma majors are increasingly looking for low-cost suitable alternatives for R&D and manufacturing. "India with ample opportunities available to be capitalized on without compromising on quality," seems like the ideal low-cost destination, the report says.
Bio-pharma with revenues of USD 811 million accounts for three fourths of the Indian biotech market and has registered a growth of 30% growth driven particularly by the vaccine business. In fact the Avendus report points out that India is emerging as the vaccine hub of the world, with one of the every two children in the world being immunized by vaccines made in India. Companies like Serum Institute, Panacea Biotec and Shanta Biotech are at the forefront of this revolution, the Avendus report says.
India is also being taken increasingly seriously as a biotech-outsourcing destination with revenue from work outsourced by Western companies accounted for more than 13% of India's biotechnology exports of USD 395 million during 2004.
Another trend the report identifies is that of custom research helping Indian biotech start-ups generate early cash flows. Typically such cash flows are used to fund infrastructure and scientist salaries till the companies gather critical mass to move on to product development. "There also exist opportunities to move up the value chain through discovery-led research programs on shared IPR and milestone payments," the report says.
Indian Biotech industry to cross $ 5bn by 2010, study says
Monday, April 17, 2006 17:00 IST
Our Bureau, Mumbai
Inherent 'India Advantages', growing investments by established business houses, favorable government stance and significant interest of the international community are likely to ensure that the Indian Bio-Technology sector will cross revenues of USD 5 billion in the next four years, according to a research report by leading investment bank Avendus Advisors.
The report points out that India has inherent strengths like a large pool of qualified scientific talent, several research labs and R&D institutions and strong IT skills. The country also possesses rich human, plant and microbial bio-diversity offering a great base of genomic and pharmaco-genomic studies for drug discovery.
Growth in the sector is expected to come on the back of increased partnering activity, transition to a product model, growth in bio-generics market and government initiatives to encourage investments and expansion in the sector, the report says.
Besides revenues of USD 5 billion, by 2010, the biotech industry in India is expected to generate over one million skilled jobs and have a 10% share of the global industry, the Avendus report says adding, "India is now among the top five biotechnology hubs in the Asia Pacific region in terms of attractiveness for investment in this sector."
The report points out that global pharmaceutical and biotech industry faces several challenges including increasing regulatory restraints, stagnant product pipelines and high R&D costs. Against this backdrop, global pharma majors are increasingly looking for low-cost suitable alternatives for R&D and manufacturing. "India with ample opportunities available to be capitalized on without compromising on quality," seems like the ideal low-cost destination, the report says.
Bio-pharma with revenues of USD 811 million accounts for three fourths of the Indian biotech market and has registered a growth of 30% growth driven particularly by the vaccine business. In fact the Avendus report points out that India is emerging as the vaccine hub of the world, with one of the every two children in the world being immunized by vaccines made in India. Companies like Serum Institute, Panacea Biotec and Shanta Biotech are at the forefront of this revolution, the Avendus report says.
India is also being taken increasingly seriously as a biotech-outsourcing destination with revenue from work outsourced by Western companies accounted for more than 13% of India's biotechnology exports of USD 395 million during 2004.
Another trend the report identifies is that of custom research helping Indian biotech start-ups generate early cash flows. Typically such cash flows are used to fund infrastructure and scientist salaries till the companies gather critical mass to move on to product development. "There also exist opportunities to move up the value chain through discovery-led research programs on shared IPR and milestone payments," the report says.
posted by Jones Lang LaSalle NJ News Blog at 4:12 PM
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