Project Nabojagoron - India Brand Equity Foundation

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Dec 5, 2012 (4 years and 4 months ago)

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Biotechnology

September 2006

BIOTECHNOLOGY

Indian biotech sector closes in on the

USD 1.5 billion mark…


Industry grew by 37% for second year in a row


Bio

pharma,

the

largest

segment,

grows

by

32
%

to

exceed

US
$

1

billion


Exports

at

US
$

763

mn,

accounted

for

52
%

share

of

total

industry

revenues


Bio
-
pharma

accounted

for

75
%

percent

of

the

total

exports

and

70
%

of

domestic

sales


Agri
-
biotech

and

bio
-
services

registering

fastest

growth


Top

10

biotech

companies

accounted

for

51
%

of

the

total

biotech

business
.


Investments

cross

$
360

million

in

2005
-
06
,

growing

36
%


Source: Biospectrum
-
ABLE Annual Survey 2005

0.5
0.7
1
5
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
2002-03
2003-04
2004-05
2009-10
Indian Biotech Market projected Size

Key Segment Biotech Industry

BIOTECHNOLOGY

India among the 12 biodiversity
hotspots of the world


45,000 different plant species


16 different agro climatic zones


10 vegetative zones


426 habitats of specific species


30 million micro
-
organisms


15 biotic provinces


18,000 flowering plants (out of 400
families, 315 in India)


1,800 bryophytes


23,000 fungi


1,600 lichens


2,500 algae

India's Biodiversity Indicators

Biotech Value Proposition

BIOTECHNOLOGY

Key Opportunity Segments

Vaccines


Bio
-
Pharma R&D

Agri Biotech

Therapeutics

Bio Services

Industrial Biotech

Diagnostics


Bioinformatics

Bio Suppliers

BIOTECHNOLOGY

Biopharmaceuticals

Vaccines

294.32

379.32

28.88

Therapeutics

94.32

113.64

20.48

Diagnostics

92.50

136.59

25.98

Others

144.32

181.82

47.67

Total
industry

625.45

811.36

29.72


Segment


Sales

(US$ million)

2003
-
04

Sales

(US$ million)

2004
-
05

Growth

(percent)

2004
-
05

Source: Biospectrum
-
ABLE Annual Survey 2005


Revenues in 2004
-
05, estimated at US$ 811.36 mn.


Biopharma single largest contributor to the biotech industry


Segment registered a growth of 30% in 2004
-
05

BIOTECHNOLOGY

Vaccines


India creating

“weapons of mass protection”


India largest producer of recombinant Hepatitis

B vaccine in the world today


Exports a major contributor


vaccines procured

in large volumes by GAVI


Strong capabilities in vaccine development and
manufacturing


Partnering foreign companies to develop and market
vaccines in India


Current focus on development of combination
vaccine


Public institute leading new vaccine research

Acambis plc,

Cambridge, UK has established a
manufacturing and marketing agreement with
Bharat Biotech

International Limited

in India
relating to its investigational vaccine against
Japanese Encephalitis.

Panacea Biotec
(India) has formed a joint venture
with
Chiron Vaccines, USA
, the world’s fifth
largest vaccine company, to provide breakthrough
combination vaccines to the Indian market.

BIOTECHNOLOGY

Therapeutics


Burgeoning opportunity

Source: E&Y analysis


In 2004 market recorded 20% growth rate and
revenues of US$ 111.1 mn


One fourth of over 50 global recombinant
therapeutic products have made inroads into India


Indigenous expertise in over seven recombinant
therapeutics


Indigenous production by local companies has
resulted in the drastic reduction of prices


Local brands taking global brands head on in terms
of quality and market share


Domestic companies looking keenly at the global
biogenerics opportunity


India becoming attractive both as market and
partner for global firms


Some Indian companies contract manufacturing

for global biopharma firms

Erythropoietin

16.7

20

Human Insulin

16.7

40

Streptokinase

17.8

25


30

G
-
CSF

5.6

25


30

Follicle stimulating
Hormone

4.4
-
5.6

20

interferon

4.4
-
5.6

20

Segments

Estimated Market

(US$ million)

Growth Rate

%

BIOTECHNOLOGY

Diagnostics


On a strong footing


Sector estimated at US$ 137 mn in 2004
-
05,

an almost 48% jump over the previous year


In 2004, there were about 25 companies
manufacturing diagnostic kits in India


Indian diagnostics market still largely import driven


National Biotech Strategy Draft refers to
“diagnostics” in the sectoral road map


Industry expects to register close to 30 per cent
growth every year for the next few years

ReGenesis,

the Assisted Reproduction Facility

of Reliance Life Sciences, has recently filed for a
worldwide patent for a novel diagnostic test

to detect genetic defects
.

BIOTECHNOLOGY

Biopharma R&D


Innovation ahead


Sector seeing a subtle shift from generics to
innovation led research


Product development focus on new generation
vaccines, diagnostic kits and therapeutics


Considerable headway in medicinal plant research


Strong biopharma R&D capabilities in academia


Global stem cell companies noticing India as a
future destination

GangaGen Biotechnologies
, focused on the development
of
bacteriophage
-
based products
, has received
two

US patents

for its proprietary bacteriophage technologies.

Genomics

Proteomics

Pharmacogenomics

Stem cells

Nanobiotechnology

Active
research
areas

BIOTECHNOLOGY

Bio Services


Global

off
-
shoring driving growth

Destination India

Clinical


Trials

Contract


R&D

Contract


Manufacturing

Pfizer


Glaxo


Novartis

Actavis,
a European generic drug manufacturer has
expanded its presence in the Indian pharmaceutical market
through its acquisition of Lotus Labs, one of India’s leading
CROs.


Quintiles
has opened a data management centre

in Bangalore with the intention of moving most of its global
data management activities to this centre

Syngene Internatiaonal (India),
which focuses on early
stage discovery, has entered into a contract research
agreement with the R&D arm of Novartis

GSK Biologicals
is looking at developing India as

a global hub for clinical research and development.

BIOTECHNOLOGY

Bioinformatics


Strategic
partnerships underlie growth


In 2004
-
05, the Indian bioinformatics sector
registered revenues of US$ 22.2 million


India’s entry into the product patent regime has
boosted the bioinformatics sector


Sector expected to grow to a US$ 120 million
opportunity by 2006


Indian bioinformatics companies have shown cost
savings to the extent of 30
-
40 % in the drug
development process


India has the potential to assume global leadership
in genome analysis


Laboratory information management system
presenting new opportunities

BIOTECHNOLOGY

Partnership


key strategic options

Multinationals such as

Accelrys
(a subsidiary of Pharmacopeia),
Tripos
etc. also have a presence in this sector in India

AlphaGene Inc
. has entered into a collaboration to use
bioinformatics technology from
Questar Bioinformatics Ltd.

to mine Alpha Gene's protein library.

Tata Consultancy Services (TCS),

a leading Indian
technology services company, has entered into an agreement
with Congenia, a biotechnology start
-
up promoted by Italy’s
Genextra Spa group
.

Strand Life Sciences

has entered into a research collaboration

with
Elan Pharmaceuticals

aimed towards supporting Elan’s
drug discovery efforts.


BIOTECHNOLOGY

Agri
-
Biotech


On high acceleration


Ag
-
biotech registered a growth of over 81%

with a value of US$ 136 mn in 2005
-
06


Bt cotton seeds revenues in 2004
-
05 recorded

a growth of 369% compared to 2003
-
04


2004
-
05 was a landmark year for Bt Cotton

as 6 new varieties were approved


Area under Bt
-
Cotton cultivation increased over

20 times in the last 3 years of its commercial
cultivation.


By 2010, India has the potential to become a major
grower of transgenic rice and several genetically
engineered vegetables.


Biofertilisers and Biopesticides evolving as new
opportunities

The total market for the biopesticides and biofertilisers is
estimated at US$ 17.8 million in 2004
-
05. The biopesticides
market is growing at a rate of 25
-
30 per cent.

India and the US have signed a five
-
year agreement

in the area of agri
-
biotech research.


BIOTECHNOLOGY

Bio
-
diesel, a burgeoning opportunity


Even one tenth of oil import substituted
with bio
-
diesel translates into US$3 bn a
year opportunity at 2004 oil prices


National Mission Bio
-
diesel Programme
envisages achieving 5% bio
-
diesel blend in
diesel in nine states followed by a pan
-
India rollout.


Many states have formed nodal agencies for
bio
-
diesel development and announced
draft bio
-
diesel policies

UK
-
based diesel manufacturing company, D1 Oils, investing
US$ 2 mn in India for setting up a 8,000 ton per annum
capacity refinery at Chennai, which is likely to be
commissioned by 2007. The company plans to have 5 mn
hectares of land under Jatropha cultivation and to produce
2.7 metric tons of oil per hectare within five years.

BIOTECHNOLOGY

Industrial Biotech


India on course


The sector comprising predominantly of enzyme
companies estimated to be worth of US$71.1 mn

in 2004
-
05, registering a growth of 34.45 %


Food and detergent industries expected to
substantially increase consumption of enzymes


Government encouraging establishment of wine
parks for processing of grapes for value addition


Leading global players such as Novozymes,
Genencor International in India


Domestic players scaling up capacities

Development Corp., Dyadic International and

Quest International have a direct or indirect presence

in the country

Pharma
50%
Detergent
20%
Food & Feed
5%
Textiles
Processing
20%
Leather &
Paper
5%
Sector wise Contribution

Source: Biospectrum

BIOTECHNOLOGY

Bio
-
Suppliers


Indian pharma and biotech companies increasing
their R&D budget.


Indian players escalating capacities


Approximately 120 companies in India supplying

to Indian biotech companies.


Over 800 products ranging from consumables

to high end equipments such as bioreactors,
fermenters, HPLC and LCMS are supplied by Indian
companies.


Total business of suppliers to Indian life science
industry in 2004
-
05 stood at US$ 273.3 million.


Global bio
-
suppliers scaling up Indian presence


Union Budget 2005 announces reduction of custom
duty to 5 % on nine specific equipments used
exclusively in pharma and biotech sectors

BIOTECHNOLOGY

Policy Initiatives


DBT to promote and support 10 biotech parks

by 2010


A competent single National Biotechnology
Authority with separate divisions for different
sectors proposed


Single window clearance for biotechnology plants


Task force set up under the leadership of Dr. R A
Mashelkar, Director General (CSIR) to formulate
modern and efficient regime for recombinant DNA
pharma products.


Provisions in Patent act ( Third Amendment ),

2005 specifically for biotechnology


Bioinformatics policy of India 2004, DBT
identifying Bioinformatics as high priority area
under Tenth Plan


“National Stem Cell Priority Fund” to finance
research on stem cells


States leading from the front in bio
-
policy and
infrastructure support

BIOTECHNOLOGY

Fiscal and Trade Policy Initiatives


Exemption of import duty on key R&D, Contract
manufacturing/clinical trial equipment and duty
credit for R&D and consumer goods


150% weighted tax deduction on R&D expenditure


Removal of custom duty on imported raw material
where finished product is duty free


Simplification and streamlining of procedures


Efforts to promote Indian regulatory data
Internationally

BIOTECHNOLOGY

The India Brand Equity Foundation is a public
-
private partnership
between the Ministry of Commerce & Industry, Government of India
and the Confederation of Indian Industry. The Foundation’s primary
objective is to build positive economic perceptions of India globally

India Brand Equity Foundation

c/o Confederation of Indian Industry

249
-
F Sector 18, Udyog Vihar Phase IV

Gurgaon 122015, Haryana, INDIA

Tel +91 124 401 4087, 4060
-

67

Fax +91 124 401 3873

Email j.bhuyan@ciionline.org

Web www.ibef.org

BIOTECHNOLOGY

Disclaimer


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