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Feb 22, 2013 (4 years and 8 months ago)

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Information Memorandum

June 2012

Project Koenig

2

Transaction Summary

Company

Name

Project
Koeing

Year

of

Incorporation

2003 in the US and 2005 in India

Nature of Business

Medical Device and Biotechnology

Promoters

Project
Koeing

US

Requirements

The Promoters are looking for private equity funding round of US$ 30
mn

/ Outright sale

3

Genesis of Project Koeing US: The Backdrop

The Backdrop


Over last few decades, global Pharma
companies experience rising competition and
costs related to conducting research on
patented molecules. Thus, they increasingly
resort to outsourcing this research or acquiring
commercially attractive and ready molecules,
esp. Biotech product patents


During the last over 8
-
10 years, the price of
biotech molecules grew substantially ranging
between US$ 0.5
-
16.0 bn. and several large
transactions took place with Pharma companies
buying or licensing out these molecules from
biotech companies


However, the scientists responsible for
developing these molecules were rarely
sufficiently compensated, leading to a
significant level of frustration in the scientist
community, On the other hand, the biotech
companies walked away with huge profits


Also, while the society was benefited with new
innovative products, they came at a high cost

Company’s Formation


Given his extensive experience in the Pharma and
medical field, the key promoter of Project Koeing
US (PK US), identified a unique opportunity of
creating a ‘platform’ for research scientists
wherein they could internally develop patented
molecules at effective costs and reap financial
rewards for their efforts


With this background, PK US was formed in year
2003


Many well renowned scientists from the U.S. and
India joined PK US as equity holders in the
Company and are currently on the Scientific
Advisory Board, guiding the development of
molecules they have themselves developed


The Company’s entire research team is not only
fully dedicated to serving the society with their
research contributions but is also focused on
providing the same at more economical rates that
would not have been possible otherwise

4

Project Koeing: A Snapshot




Project Koeing India (PKI) is the Indian subsidiary of

PK US and is currently one of the fastest
growing biotechnology companies in India


The Company’s vision is “ To improve the quality of human life by assisting in the detection and
treatment of cancer and various abnormalities’


PKI has a unique business model of acting as an incubator of various molecules and technology
platforms during their development process


The Company has already in
-
licensed patented molecules and technology platforms in 5 areas
related to Cancer and other diseases in India
.
All these molecules or platforms are fully validated
by important authentic agencies from the U.S. and India


Currently, the Company owns 65 patents



CAD: Ready for Market today
The CAD based technology for diagnosis of breast cancer and
other types soft tissue

of cancer
s
. It is a validated technology in the sense that the company
has already received Bionexus status from the Malaysian Biotechnology Corporation Sdn. Bhd.
And has been tested in over 400 cases in the US and proven to have an accuracy of 95%.



Brief Description

5

The Company Structure


Sub 1



The Company has
been created for the
commercialisation
of Manufacturing
technology platform
for manufacture of
recombinant protein


Sub 3



The Company has
been created for the
commercialisation
of A Immune system
boosting cytokine
technology for
breast cancer
Products



Sub 2



The Company has
been created for the
commercialisation
of a novel platform
based on nucleic
acid technology.



The 1
st

product
has already been
shown to be safe
and efficacious in
cancer in Phase II
human clinical trials
and is all set for
Phase3 studies with
all approvals in
place

Project Koeing

Sub 4

Malaysia



This division would
undertake
development of
Biotechnology and
Medical device
projects In Malaysia


Currently a CAD
Based Breast Cancer
detection Project
has been developed
and is ready to
market


100% equity

100% equity

100% equity

30% equity

6

In
-
house Value Add during
the Development Process

Licensing out/Sale of the
Developed Molecules

In
-
licensing of
Molecules/Technology
Platforms

Typical Timeline


3/4 Years


Project Koeing India licenses
out new molecules or a
technology platform from
Pharma companies and takes
over the remaining
development process. The
original creator (scientist) of
the molecule typically takes
an equity stake in Project
Koeing India


Project Koeing India manages
the entire development cycle
of the molecule/platform in a
more efficient & cost
effective manner


The Company aims to:


Create cheaper and effective
drugs to fight cancer. The
Company is able to significant
reduce the development costs
of molecules as compared to
Pharma Generic companies


Quick turnaround of the
process


The Company enjoys the unique
advantage of having various
renowned scientists besides the
original creator of the
molecule/technology that provide
extremely valuable insights during
the development processes of
these molecules/platforms


Once the development
process is complete, Project
Koeing India plans to license
out or sell the developed
molecules to global Pharma
company that will launch
these drugs into the market


Incase of licensing out,
Project Koeing India will
continue to hold all the
patents related to the
molecules/technologies,
which can be further used to
develop new technologies in
related areas


The upfront payment
received from the Pharma
companies and the periodic
royalties etc will be main
revenue generators, which
will be shared with the
original creators of
molecules/technologies

Project Koeing India: A Unique Business Model

Various
Stages

7

The Technology Platform

PKI’ various projects such as these have
strong technological validates from
institutions including US FDA, DCGI (India),
Dept. of Science & Technology (Govt. of
India), Malaysian Biotechnology Corp. etc


PKI

currently

has

its

four

pillars

of

success

in

form

of

the

following

molecules
:


A Platform technology for bio
-
manufacturing of
recombinant proteins in yeast
-
based expression
systems; Cost of production to be reduced to
20% of the current manufacturing cost


A Novel RNAi based Platform: Novel class award
winning technology for the treatment of
colorectal cancer; The product had already gone
through Phase I / II studies in the US, and has
been cleared by US FDA; Phase III studies to be
conducted in India


Affinity based Drug delivery technology: Novel
Class of molecules; The entire preclinical trials
have been completed in US and application is
being prepared for submission to the DCGI
seeking approval to conduct Phase I/II clinical
trials in India for liver cancer


Immunotherapy: A Cytokine Patent owned by
the company and under further development in
the Indian lab (at a preclinical stage); Very
effective in Leukimia, Renal Cell carcinoma and
other Cancers.


CAD: A Non invasive Medical device using AI
based algorithms for detection of Breast cancer
and automated biopsy plus drug delivery





Five Technology Platforms

Put together, these molecules have a market
potential of over US$ 50 Bn.; PKI’ first exit of a
Molecule/Platform is expected to take place
in the next 18
-
24 months; Prospective
collaborators for these technologies include
Merck, Roche, GSK, Pfizer etc

Project Koeing is consistently working on creating
its future pipeline of molecules/platforms etc and
currently is in process of acquiring/licensing
another 5
-
7 technologies

8

Five Key Projects in the Pipeline

RNAi


12 to 18 months

A Phase III
-
stage clinical
candidate that belongs to a
novel class of molecules
called ribozymes, which work
by destroying mRNA
molecules of target proteins;
This is for the treatment of
colorectal cancer

Manufacturing Tech.


6
months

A platform technology for
bio
-
manufacturing of
recombinant proteins in
yeast
-
based expression
systems

Affinity based drug
delivery


24 to 36
months

An early clinical stage
candidate that belongs to a
novel class of molecules that
work by organ targeted drug
delivery; This is for the
treatment of liver cancer

Immuno
-
therapy


60
months

An early
-
stage program to
discover and develop a
Immuno Therapy based
cytokine which will be able to
help boost the immune
response to fight against
melanoma, Lymphoma and
Rena cell carcinoma etc.

Key
Projects
in

the
Pipeline

CAD Tech


3 Months

A Medical Device platform
technology for not only
detection of various types of
abnormalities like cancer
but also automated Biopsy
and drug delivery

9

Enhanced Protein Expression Technology


Manufacturing Tech.

This is an interesting technology to increase the yield of fermented products and the
yield is as much as 5
-
10 times more in fermentation of recombinant proteins, leading to substantial decrease in production cost


Description


Platform for bio manufacturing
of recombinant proteins in yeast
based expression systems;


Eventually the platform will also
be extended to mammalian
systems like CHO cells


Technology


Technology creator is SALK
Institute for Biological Studies


Dr.

Martin, who had originally
patented this technology, is also
a shareholder in PKI


Benefits


This platform enables 5
-
10 fold
increase in yield per unit, thus
cost of production of proteins
can be reduced to 20% of the
current manufacturing cost



It is also a platform which has
varied applications



Investors & Funding


INR 45 mn has been awarded
From World Bank Technology
Development Funds through
ICICI


A total of around US$ 60 mn
have been spent on the
molecule so far


Current Status


In house work has shown
and increase in Yeast cell
productivity by a factor of
2 fold.


Time to Market &
Potential


Time to market is around
1 year
,
with a total market potential of
around US$ 30
bn

10

RNAi

The DCGI has approved it for Phase III clinical trials in India at 20 cancer centers. RNAi based products will
most likely be the first product to hit the market in the next 18
-
24 months with a high success rate and
huge market potential

Description


RNAi

based products is a novel
class prize winning technology
for the treatment of colorectal
cancer


The mechanism of action of
RNAi

based products is
mediated through Ribozyme;
The result of
RNAi

based
products in patients with high
VegFr1 in colonic cancer
patients are very high


Technology


2 Major Biotech companies had
initially worked on this molecule
and invested over US$ 245
mn
;
KPI took over project when the
the

JV between the 2 companies
split as a result of them being
bought out by other major
Pharma
companie
.


Benefits


Besides colorectal cancer,
RNAi

based products can also be used
in the treatment of other types
of cancer including breast
cancer ,and weight reduction


Investors & Funding


RNAi

based products patent has
been well acknowledged by the
Govt. of India and thus has
been granted US$ 4
mn

from
Dept. of Science & Technology
for its development


Current Status


RNAi

based products has
already undergone Phase I & II
trials in the U.S. and the Phase
III are to begin in the next
couple of months; the DCGI
approval for the same has been
received by PKI


Time to Market &
Potential


Time to market is around 12
-

18
months, with a total market
potential of around US$ 15
bn


Potential collaborators post the
clinical trials include Pfizer, J&J
and
Otsuka
, Aventis,
Taiho

etc.
(Discussion have already been
initiated with them.

11

Affinity based Drug delivery

LIV1 is an early clinical stage candidate that belongs to a novel class of molecules that work by organ
targeted drug delivery and is targeted at treating Liver related cancers

Description


The Ligand technology is a
mechanism by which the active
drug molecule can be delivered
to the targeted organ depending
on the nature of the disease


The technology enables the
specific Anti
-
Cancer drug
needed to treat the tumor for
focused delivery into the tumor

Technology


Technology creator was a
Maryland based Biotech
company under a JV with John
Hopkins and as mentioned
above, it has been validated by
US FDA


Benefits


The first application targets liver
cancer and comprises the cancer
drug 5FdU linked to a second
molecule that directs it
selectively to the liver



The FDA awarded Orphan Drug
Status to the same that puts the
drug on a fast track for approval



Investors & Funding


A total of around US$ 40
mn

have been spent on the
molecule so far


Current Status


An IND application has been
prepared and is ready for
submission to the DCGI seeking
approval to conduct Phase I/II
clinical trials of LIV
-
1 in India for
liver cancer



Time to Market &
Potential


Time to market is around
3
years
, with potential market
collaborators including Pfizer


Market potential is around US$
3
bn

12

Immuno Therapy

Cytokine Technology is an early clinical stage gene therapy product that is targeted at treating Renal Cell
Carcinoma, Myloma/ Lymphoma and other kinds of cancer

Description


The Immunotherapy, is an early
-
stage program to discover and
develop a Cytokine based
product for treating various
immune based cancers like
Myloma
, Lymphoma and Renal
Cell Carcinoma


Technology


Technology creator is
researchers at NIH and PK US

Benefits & Current
Status


While the product is at an early
stage of development, it is
believed to be very beneficial for
breast and other kinds of
cancers



Investors & Funding


The funding of INR 94 mn has
been provided by grants and
soft loan from the Department
of Biotechnology, Government
Of India




How it works


The tech works in three

ways:


Blocking tumour angiogenesis
(new blood vessel formation)


Inhibiting tumour cell
proliferation by sequestering
the growth factors


Limiting tumour metastasis by
inhibiting tumour cell migration
across semi
-
permeable barriers



Time to Market &
Potential


Time to market is around 6 to 7
years, with a total market
potential of around US$ 2
bn


Potential collaborators include
Novartis and GSK

13

CAD Technology

Spacer for
Inhalation

CAD

Ready for
Market today


Project Koeing has acquired an interesting technology for use in various
asthmatic conditions
.

where the new spacers patented, developed, approved
by US FDA can be of tremendous use in delivering much higher quantity of
drug into the lungs as compared to the current traditional inhalers



The CAD based technology for diagnosis of breast cancer and
other types soft tissue

of cancer
s
. It is a validated technology in the
sense that the company has already received Bionexus status from
the Malaysian Biotechnology Corporation Sdn. Bhd. The Company
in Malaysia will go into

production as soon as funding can be
obtained. In Studies involving over 400 patients the technology
has shown to have an accuracy of 95% with less than 1 false
positive in 4 films.

14

The Promoter Team

Co Founder

Founder


Has spent over 40 years in the pharmaceutical industry


Commenced at age 19 in Schering AG; Grew up to the level of All India No. 2,
at the age of 27


Joined The UB Group as General Manager [Corporate Management div.]; Grew
to the level of President Life Science Division, and was running 7 group
companies in India and Africa


Was a member of Hoechst AgrEvo board, Aventis AgrEvo, and several other UB
Group companies


Was responsible for bringing pain killer “Combiflam“in India, and several other
successful brands of the group


President Project Koeing India for last four years. Also Director, of a leading
Neutraceutical company.


Graduate in Engineering from the US


Over 23 years of experience in Biotechnology
-

both in the US & India


Founder and Executive Vice President of a CMO [worked in using Mammalian
and Yeast Cell lines]. Subsequently, founded a BioInstruments company
[Nasdaq quoted company], which was involved in the marketing of
sophisticated equipments for Biotech R&D. Prior to this he was associated
with a Medical device company
-

a CAD based diagnostic Tech company


Founder, Managing Director of PK US and its associate companies in India and
Malaysia


15

Senior Management Team

Management

Qualifications & Experience

Director Medical Affairs, Project
Koeing

India

Was Director Medical Affairs, Hoechst, Aventis; Later, Vice President at Zydus
Cadila


Incharge


Regulatory Affairs

Was previously working with Bharat Biotech

Head, R&D

Was professor in Texas Health centre. Director for Gene Transfer Technologies
for Cancer Therapy & Research Center, Texas [USA] and was the Head
-
Biology
Research for Reliance Life Sciences [Mumbai; Ph.D with Molecular Virology &
Oncology, Wisconsin, U.S.

Executive Vice President


Legal and
Commercial

Graduate from the
University of Poona,
pursued his Management Studies at
the Jamanalal Bajaj Institute Mumbai & the Narsee Monjee Institute Bombay;
Was previously a senior officer in Hoechst Marion Roussel and General
Manager in Global Tele

VP of New Projects

Strategic Consultant by profession he is Looking after all the new projects of
the company; Worked with Hitachi India , prior to joining Project
Koeing

India


Executive Vice President = HRD &
Materials Management

Over 30 years of experience in Pharma and Liquor industry. Was Vice President
UB Group


CSO

Has previously worked with Amgen, Genentech,
Avasthagen

etc
; Was CSO of
Project
Koeing

India for 3 years; Currently he has decided to move to San
Francisco and will assist PK US operations in the US


VP R&D

Was previously working with Glenmark


16

Knowledge Quotient of the Team

Others
5%
Graduates
11%
Doctorates
Degree
37%
Masters
Degree
47%
17

Scientific Advisory Board

Name

Associations

Noriyuki
Kasahara

M.D.,
Ph.D.


University of California at Los Angeles, CA


Patrick Hwu, M.D.

MD Anderson Cancer Center, Houston, TX

Dr Mukund Joshi

Ex President Indian Radiological & Imaging
Association

Chief Radiologist at Jaslok & Tata Hospital

Dr.

Om
Tavri


Ex President Indian Radiological & Imaging
Association

Chief Consultant Asian Cardiology Institute

The Scientific Board plays a key role in maintaining a strong product pipeline for the Company by
continuously searching for and acquiring new technologies/products for Project Koeing India to work upon
in the future; Most of the Board members are part owners of the technologies/products, thus are
shareholders in the Company

18

Clinical Advisory Board

Name

Associations

Alan Venook M.D.


University of California at San Francisco, CA


Malcolm Brenner M.B.,
Ch.B., Ph.D, F.R.C.P.,
F.R.C.Path.

Baylor College of Medicine, TX


Dr K C Saxena

Founder and CTO Stereometrix ., San Jose, CA


Dr. Eberhard Baltin

MD & VC Hoechst Group

MD Aventis Pharma

Nassim Usmaan, Ph.D

CEO, Catalyst Biosciences, San Francisco, CA


Kim Margolin M.D

Fred
Hutchinsons

Cancer
Center
, Seattle, WA


The Clinical Board plays an active role in the development and testing of products by guiding the entire
process from acquisition till the clinical trials of the products

19

The R&D Lab at Mumbai

Project Koeing India has an 18,000 sq ft Research and Development laboratories in Mumbai.


This state of the art DSIR approved R&D labs will be used to develop products.



A larger pilot plant and manufacturing center on 11 acres will be setup in Khapoli.

Lab Facilities include

1.
State of the art of Recombinant, Mammalian and Bacterial yeast based cGLP Laboratories

2.
State of the art level 2t, Gene Therapy Labs with incineration at exhaust points to contain any
virus spillage and positive pressure Corridors

3.
Labs for development of cytokine based Immunotherapy



4.
The common infrastructure is set aside with easy access for all labs

5.
All the labs are in a clean zone environment and accessible only with appropriate access using
electronic keys and electronic air lock system


The lab facility at Mumbai is the cornerstone infrastructure for all the ongoing R&D efforts at PKI and is a
state of the art facility serving all requirements of the various technologies/products under development

20

Key Features of the Lab

Fermentation &
Protein
Purification

Microbiology &
Molecular Biology


These labs are used for yeast fermentation and application of VFF2 technology to produce
recombinant bio
-
therapeutic proteins such as human insulin, human growth hormone, G
-
CSF,
etc. The major equipment here is as follows:


Biocontainment hood


Incubators


Five
-
liter Fermentors


Chiller and compressor units


Bench
-
top refrigerated centrifuges and microfuges


Floor model centrifuges


PCR Thermocyclers


Electrophoresis systems


HPLC


Chromatography systems (Radial and Axial)


These labs are used for preparation of DNA, RNA and plasmids, banking of plasmids in E. coli
bacteria, and analysis of DNA by restriction enzyme mapping, polymerase chain reaction (PCR)
and gel electrophoresis. The major equipment here is as follows:


Biocontainment hood


Incubators


Bench
-
top refrigerated centrifuges and microfuges


PCR Thermocyclers


Electrophoresis systems


Gel documentation system (for electronic capture and recording of data)

21

Key Features of the Lab (contd.)

Ancillary Labs

Gene Therapy &
RCL Assay


They include labs for Media Preparation, Analytical and Cell Culture. The major equipment here
is as follows:


Water purification system


Autoclaves


Freezers:
-
80oC and
-
20oC


UV/VIS Spectrophotometer


ELISA Reader


Biocontainment hoods


CO2 Incubators


These labs are used for discovery, production and analysis of lentiviral
-
based gene therapy
products using MSP36. Since lenti
-
viruses can be pathogenic, the gene therapy lab has been
specially designed to provide Level II containment with an independent HVAC system, negative
pressure and burn
-
out unit. The major equipment here is as follows:


Biocontainment hoods


CO2 Incubators


Microscope


Two
-
way autoclave for biohazard waste decontamination


Ultra
-
centrifuge

22

The Pilot Plant

Pilot Plat for
Recombinant
Proteins


Pilot Plant for Recombinant Proteins (being equipped): This has been built to be “almost” GMP
specifications, incorporating separate HVAC systems, uni
-
directional flow of personnel, labs for
QC/QA, Media Prep Room, and various suites for Fermentation, Clarification and Downstream.
The major equipment here are as follows:


10
-

and 30
-
liter Fermentors


Autoclaves


Boiler (steam generation), chiller and compressor unit


Floor model centrifuges


Tangential flow filtration systems


Low pressure and High Performance Chromatography systems


Analytical lab instrumentation

23

SWOT Analysis

Strengths

Weaknesses

1.
Only company in India with a drug in Phase III stage

2.
Owner of unique Manufacturing technology

3.
High IPR value

4.
Validated and recognized by International Research
Institutes and Governments Agencies

5.
Wide spectrum Of operations

6.
High Precision Value Chain

1.
Currently, an Indian Government subsidized
organization, however with minimal incentive from
the Govt.

2.
Infancy stage of the biotech sector and the lack of
significant awareness in India

3.
Lack of super specialist manpower

4.
Slightly complex legal structures

Opportunities

Threats

1.
US$30 bn Orphan Drug Market to be tapped

2.
Opportunity to generate very high networth worth
US$100 bn worldwide

3.
Huge Potential of value creation

4.
Opportunity to generate higher IPR value

5.
Opportunity to improve the quality of life by
creating new improved treatments for cancer

6.
Opportunity to improve Biotech research status in
India & abroad

1.
Brain Drain

2.
Infringement of IPR

3.
Sustention of Continuous R&D Investment

4.
Technology obsolesce of the technical equipment
used

5.
Volatility of global economic conditions

6.
High lead time in Infrastructure Development

24

Milestones Achieved & Road Ahead

Achievements Till Date

Expected Milestones

Year 0
-
1

Year 1
-
2

Year 2
-
3

DCGI Approval for
Phase III Trials for
RNAi based
products

18,000 sq.ft. R&D
setup at Mumbai

Acquired 5 acres of
land for the new
manufacturing plant

More than US$ 10
mn invested by PKI
in the current
pipeline

Govt.
Permissions/R&
D Plant setup

Production &
Approvals for
RNAi based
products

Licensing/Sal
e of RNAi
based
products
(First Exit)

25

Key Focus Areas for Growth

Key Focus areas
for Project
Koeing

Create the planned
Pilot manufacturing
plant at Khopoli

Complete the
ongoing
development of the
current product
pipeline on
schedule

Focus on acquiring
new technologies
/products to
maintain a strong
product pipeline

Currently, Project Koeing requires US$ 30 mn to pursue its growth strategy, which primarily includes
continuing development activities for its four key products and bring them to conclusion

26

Project Wise Fund Requirement

The total fund requirement of US$ 30 mn is split across all the four key technologies/products with the
Manufacturing and RNAi based products garnering the majority shares

27

Prospective Clients Upon Product Maturity

Project Koeing has a large potential client base upon the maturity of its products/technologies

Typical Exit


Revenue generation at PKI will take
place at the exit of a
product/technology, which will
most likely take place in form of
the licensing out of the
technology/product once it is
ready for commercialization


A typical licensing deal includes an
upfront payment to the technology
owner and royalties/periodic
payments over next 10
-
15 years



There could also be a sale of the
technology/product for a large
lump sum payment

Potential Collaborators


All the major pharma companies
in the world are prospective
clients for Project Koeing,
especially the ones doing
significant research on cancer
related drugs. Some such
companies include Roche, GSK,
Pfizer, J&J etc


Also, other companies such as
UB Group, Shaw Wallace etc are
also potential clients as they use
fermentation technology as a
basis of their operations


28

Biotechnology: The Next Sunshine Sector

The Global Biotechnology Sector


The global biotechnology industry is over 30 years old
and is generating almost US$ 100 bn in revenues.
There are appr. 7,000 companies worldwide, less than
600 of which are public companies



There has also been a significant support from the
Governments, given that almost US$ 150 bn worth
Govt. funding has been granted to this sector


In last decade, the industry has made historic
progress with strong product pipelines and product
successes, record
-
breaking financing totals,
unprecedented deal activity and impressive financial
results. Further, according to an E&Y report, all the
leading regions in the world have been recording a
strong double digit growth


The sector is now beginning to understand disease
'globally' i.e., from a systems point of view, from gene
or SNP to protein to networks to disease. In parallel,
and conversely, the notion of 'one size fits all' is being
replaced by medicine targeting the individual and the
central tenet on which a huge biopharmaceutical
industry has been built has to adjust to a new and
evolving personalized medicine world

The Indian Biotechnology Sector


The Biotechnology sector in India, although nascent at
the present time and accounting for a mere 2% of the
global Biotechnology market, is poised for exponential
growth over the next 5 years with an expected global
market share of 10%


The total revenues of this sector stand at around US$
1 bn. With a market cap of around US$ 2.5 bn.


The Indian biotechnology industry is gathering
momentum, by leveraging its low cost scientific skill
base in an imitative manner with which to build its
capPK USlities


Today, the Indian biotech sector has attained critical
mass in manufacturing as well as research services
and has slowly built a market for biotech products and
services Indian Biotechnology is now poised to
leverage its scientific skills and technical experience to
make a global impact on a strong innovation led
platform


A vibrant pharmaceutical industry, and fast developing
clinical capPK USlities collectively points to a
promising biotechnology sector and has placed India
favourably in the global market.

29

Global Pharma Companies Focus on R&D

RANK

COMPANY

R&D SPEND (US$ BN.)
As of March 2008

AS A %AGE OF SALES
As of March 2008

1

Pfizer

7.59

16.2%

2

Johnson & Johnson

7.12

13.3%

3

GlaxoSmithKline

6.91

14.9%

4

Sanofi
-
Aventis

6.02

15.6%

5

Roche

5.40

15.7%

6

Novartis

5.39

15.0%

7

Merck & Co

4.78

21.1%

8

Abbott

4.27

19.0%

9

Astra Zeneca

3.90

14.7%

10

Amgen

3.37

24.3%

Global Pharma companies are increasingly spending more money on their R&D efforts, which indicates the
significant focus from their end on developing new drugs and technologies. As a result, these companies
have also been partnering with Biotech companies to fulfill their need for new drug discovery &
development through various means

30

Deal Activity in Biotechnology Sector

Companies

Deal Value
(US$ bn.)

Novartis & Chiron

5.1

Pfizer & Vicuron

1.9

GSK & ID Biomedical

1.4

Companies

Deal Value
(US$ bn.)

Amgen & Immunex

16.0

Biogen & Idec

3.7

Amgen & Abgenix

2.2

Shire & TKT

1.6

OSI & Eyetech

0.9

Quest & LabOne

0.9

Pharma


Biotech Transactions

Biotech


Biotech Transactions

There has been significant deal activity in the Biotech sector in the past few years, indicating the various
synergistic values both Pharma & Biotech companies are recognizing between themselves