Transcript Project Nabojagoron - India Knowledge Centre

Biotechnology
September 2006
BIOTECHNOLOGY
Indian biotech sector closes in on the
USD 1.5 billion mark…
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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 $360 million in 2005-06, growing 36%
Indian Biotech Market projected Size
Key Segment Biotech Industry
5
5
BioIndustrial
6%
BioInformatic
s
4.5
BioAgr
i
4
3.5
3
2.5
2
1
BioServices
11%
1
1.5
0.5
0.7
0.5
0
2002-03
2003-04
2004-05
2009-10
Source: Biospectrum-ABLE Annual Survey 2005
BioPharma
72%
BIOTECHNOLOGY
India among the 12 biodiversity
hotspots of the world
India's Biodiversity Indicators
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45,000 different plant species
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1,800 bryophytes
16 different agro climatic zones
10 vegetative zones
426 habitats of specific species
30 million micro-organisms
15 biotic provinces
18,000 flowering plants (out of 400
families, 315 in India)
23,000 fungi
1,600 lichens
2,500 algae
Biotech Value Proposition
BIOTECHNOLOGY
Key Opportunity Segments
Vaccines
Therapeutics
Bio Services
Bioinformatics
Agri Biotech
Industrial Biotech
Diagnostics
Bio Suppliers
Bio-Pharma R&D
BIOTECHNOLOGY
Biopharmaceuticals
Sales
(US$ million)
2003-04
Sales
(US$ million)
2004-05
Growth
(percent)
2004-05
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
• 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
Source: Biospectrum-ABLE Annual Survey 2005
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
• 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
Source: E&Y analysis
Segments
Estimated Market
Growth Rate
(US$ million)
%
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
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
Genomics
innovation led research
Proteomics
• 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.
Active
research
areas
Pharmacogenomics
Stem cells
Nanobiotechnology
BIOTECHNOLOGY
Bio Services – Global
off-shoring driving growth
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
Destination India
Syngene Internatiaonal (India), which focuses on early
stage discovery, has entered into a contract research
agreement with the R&D arm of Novartis
Clinical
Trials
Contract
R&D
Contract
Manufacturing
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$3 bn a
year opportunity at 2004 oil prices
• National Mission Bio-diesel Programme
envisages achieving 5% bio-diesel blend in
diesel in nine states followed by a panIndia rollout.
• Many states have formed nodal agencies for
bio-diesel development and announced
draft bio-diesel policies
UK-based diesel manufacturing company, D1 Oils, investing
US$ 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
Sector wise Contribution
companies estimated to be worth of US$71.1 mn
in 2004-05, registering a growth of 34.45 %
• Food and detergent industries expected to
substantially increase consumption of enzymes
• Government encouraging establishment of wine
Food & Feed
5%
Textiles
Processing
20%
parks for processing of grapes for value addition
• Leading global players such as Novozymes,
Genencor International in India
• Domestic players scaling up capacities
Development Corp., Dyadic International and
Quest International have a direct or indirect presence
in the country
Source: Biospectrum
Detergent
20%
Leather &
Paper
5%
Pharma
50%
BIOTECHNOLOGY
Bio-Suppliers
• Indian pharma and biotech companies increasing
their R&D budget.
• Indian players escalating capacities
• Approximately 120 companies in India supplying
to Indian biotech companies.
• Over 800 products ranging from consumables
to high end equipments such as bioreactors,
fermenters, HPLC and LCMS are supplied by Indian
companies.
• Total business of suppliers to Indian life science
industry in 2004-05 stood at US$ 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
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BIOTECHNOLOGY
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