Developments in the Indian BioPharma Industry

An Expert's View about Medical, Health and Cosmetics Products in India

Posted on: 27 Nov 2011

The aim of the report is to examine the opportunities for UK companies operating in the biopharma sector. The report focuses on the Indian pharmaceutical, biotechnology and clinical research industry as well as the role that government departments play in fostering translational research.

Developments in the Indian BioPharma Industry Opportunities for UK Biotech Industry Anil Vaidya Life Science Specialist, UKTI UK Trade & Investment Life Science Sector Group September 2011 Whereas every effort has been made to ensure that the information given herein is accurate, UK Trade & Investment or its sponsoring Departments, the Departments of Trade & Industry and Foreign & Commonwealth Office, accepts no responsibility for any errors, omissions or misleading statements in that information and no warranty is given or responsibility is accepted as to the standing of any firm, company or individual mentioned. India - Biopharma CONTENTS Executive Summary .........................................................................3 Acknowledgment .............................................................................3 Disclaimer ......................................................................................4 REPORT BACKGROUND .........................................................................5 Aims and scope ...............................................................................5 Methodology ...................................................................................5 Definitions ......................................................................................5 BIOPHARMA IN INDIA ..........................................................................6 Generic Pharmaceuticals ...................................................................7 Biologicals ......................................................................................7 Vaccines .........................................................................................8 R&D based Pharmaceuticals ..............................................................8 Foreign Deals with Indian Pharma ......................................................10 Stem Cell Industry ...........................................................................11 THE INDIAN CLINICAL TRIALS INDUSTRY ............................................12 Market Size ....................................................................................12 Trial Registration .............................................................................12 Patient Recruitment .........................................................................12 REGIONAL CLUSTERS & SCIENCE PARKS ...............................................14 Bio Clusters ....................................................................................14 GOVERNMENT & REGULATORY BODIES .................................................16 Government Departments ................................................................16 Regulations .....................................................................................16 FUNDING ..............................................................................................17 Public Funding ................................................................................17 Private Funding ...............................................................................18 Corporate Funding ...........................................................................19 MARKET ANALYSIS AND OPPORTUNITIES ............................................20 Market Analysis ...............................................................................22 Out-licensing drug discovery opportunity ............................................22 Funding opportunity .........................................................................22 Clinical research opportunity .............................................................22 Analytical instrumentation ................................................................23 Technology Transfer .........................................................................23 Indian Phyto-pharm .........................................................................23 Consulting ......................................................................................23 INDIVIDUAL COMPANY OPPORTUNITIES ..............................................24 REFERENCES .........................................................................................26 Appendix I ............................................................................................27 Indian Government Funding .............................................................. www.ukti.gov.uk page 2 of 28 India - Biopharma Executive Summary For UK companies working in the biopharma sector, India does not appear to offer any obvious benefits for collaboration. This report examines the Indian life science market (excluding healthcare and diagnostics) to see where the benefits lie for UK companies beyond the outsourcing of drug development. India has long been associated with the generic and the API market and has no recognition as a region where drug discovery can flourish. In the past there has been little motivation or no interest from the indigenous India pharma and biotech industry to innovative, however this looks to be slowly changing. There are around 15 to 20 companies in India that carry out drug discovery for their own commercial gains. The majority of these developments are being done either in-house or as a separate entity of a parent major pharmaceutical company. Included in these numbers are a handful of contract research companies that are not only carrying out discovery work on behalf of clients but also for their own internal pipeline. The fear of IP infringement has hindered India?s push towards developing intellectual property, however with the signing up to TRIPP?s and contractual agreements that can be put in place, there appears to be no significant barrier to UK companies concerned about placing or developing their intellectual property in India. A level of reassurance must come from the large number of multinational pharmaceutical companies that are placing their drug discovery work with Indian contract research companies. The opportunity for UK companies to partner with Indian pharma and contract research organisations that have their own drug development programmes has widened. Glenmark Pharmaceutical probably leads the way in its recent success of in-licensing two molecules from a Canadian company, developing these over a few years and out-licensing these to Sanofi- Aventis. Whilst the number of life science companies in India is not comparable to that of the USA, Europe or Japan those players in the market are open to collaboration with UK biopharma companies. There is also the start of smaller biopharma companies being set up around the country as well as non-life science sector companies interested in entering into the healthcare market. Other areas within the life science sector such as stem cell research, clinical trials, bio- informatics, bio-manufacturing all offer opportunities for collaboration. Critically the UK company must be able to offer something of value that the India partner can use to scale up their operation or be able to purchase a piece of technology outrightly for them to see immediate value . Working in India requires commitment and patiences just like any another market. The GDP growth and the market population is comparable to that of China. Her own challenge is that the country?s infrastructure has not kept up with the market developments, however this is not a reason to ill judge the opportunities that are developing in the life science sector. Acknowledgments Thanks for the support, advice and arrangements for the scoping mission to India go to Priya Varadarajan Commercial Officer for Life Sciences Bangalore, Angali Malkani Commercial Officer for Life Sciences Mumbai, Priyanka Agarwal Commercial Officer for Life Science, Hyderabad and Namrata Devalia and Pradnesh Desai, Assistant Commercial Officers in Bangalore and Mumbai respectively. www.ukti.gov.uk page 3 of 28 India - Biopharma Disclaimer While every effort has been made to ensure the accuracy and objectivity of this report, the information is provided in good faith and no liability can be accepted for any inaccuracy or for any use to which it might be put. Comments attributed to the organisations visited during the mission were those expressed by those interviewed and are their individual views and should not be taken as those of the organisation as a whole. UKTI shall not be liable for any loss of profits or contracts or any direct, indirect, special or consequential loss or damages whether in contract, tort or otherwise, arising out of or in connection with use of or reliance upon this information. This disclaimer shall apply to the maximum extent permissible by law. www.ukti.gov.uk page 4 of 28 India - Biopharma REPORT BACKGROUND India is well recognised for its servicing of the ICT industry with companies such as Infosys and Wipro offering outsourcing solutions to the global software industry. India however also manufactures a large number of the world?s generic medicine and over the next few years will start to dominate the bio-similar industry. Some of these dominant pharmaceutical companies are now beginning to carry out their own novel drug discovery compounds. Aim and scope The aim of the report is to examine the opportunities for UK companies operating in the biopharma sector. The report focuses on the Indian pharmaceutical, biotechnology and clinical research industry as well as the role that government departments play in fostering translational research. Areas covered within the report include: ? Regional government support, policies and actions regarding the transfer of technology from academia to industry through to clinical practice. ? Structure of the pharmaceutical industry ? The clinical trials environment ? Opportunities for the UK biotech industry This report does not cover the healthcare or diagnostic market nor the regulations and registrations of drugs into India. A study of the Contract Research Organisations or the Contract Manufacturing Organisations in India in terms of outsourcing work to India was not covered as part of the report?s remit. Methodology Primary research was carried out by Anil Vaidya, Sector Specialist for the Far East & Asia Pacific and included visiting three cities Mumbai, Bangalore, Hyderabad. The visit involved meeting with funding groups, pharmaceutical companies, lawyers as well the main trade association and various specialists. Secondary research validated the findings provided by the visit and associated desk based research. Definitions The definition of biotechnology in India includes all industries that utilise biological processes, such as agri-bio, industrial biotech and therefore direct comparisons with other countries is difficult to assess. In this report, the conjunction, ?Biopharma? refers to the biotechnology and pharmaceutical industry as a single life science sector. Stem cells is covered as a segment of the life science industry and the term CRO refers to Clinical Research Organisations. All values are provided in USD, these figures are quoted to avoid any confusion on conversion to pounds sterling. The comparison of reported statistics are all referenced, however some figures quoted appear to vary from report to report. The lack of original source data does not allow for these figures to be quantified in comparison to one another. www.ukti.gov.uk page 5 of 28 India - Biopharma BIOPHARMA IN INDIA In 2012, India will enter into its next 5 year plan for the development of the Indian economy. It is expected that the India Department of Biotechnology will continue to work with the powerful Indian Planning Commission, part of the India government on the wider role that the biotechnology and pharmaceutical industry will play in society. The India Association of Biotechnology (ABLE) is the representative body of the industry and estimates there to be approximately 350 biotechnology companies based in India. This figure however is made up of a mix of medical device, formulation as well as recombinant type companies. The healthcare biopharma accounts for around 70% of the revenues (approximately USD 4 billion) of the total industry revenue. Approximately 150-180 companies are SME?s and are considered IP focused. Within this space there are also other providers such as contract research organisations, vaccine, biosimilar manufacturers, systems biology and bio-informatic companies. A growing sector within the industry is the botanic pharma industry which is looking to capitalise on India?s traditional Ayurvedic healthcare system. The bio-industrial sector makes up around 8-10% of the industry size working in areas such enzyme production and bio-remediation. The companies listed in Table 1 represent the top 20 companies in the biopharma sector based on revenue. Rank Company Revenue ($m) 1 Cipla 1348.51 2 Ranbaxy Laboratories 132.56 3 Dr Reddy?s Laboratories 1178.00 4 Lupin 929.84 5 Aurobindo Pharma 865.19 6 Dabur India 700.30 7 Sun Pharma 673.99 8 Cadila Healthcare 629.45 9 Jubliant Life Sciences 561.03 10 Piramal Healthcare 480.26 11 GSK Pharma 475.80 12 Ipca Labs 390.00 13 Wockhardt 381.23 14 Torrent Pharma 380.20 15 Sterling Bio 358.10 www.ukti.gov.uk page 6 of 28 India - Biopharma Rank Company Revenue ($m) 16 Biocon 340.38 17 Orchid Chemical 320.62 18 Alembic 270.62 19 Aventis Pharma 263.75 20 Glenmark 260.14 11 Table 1: Indian Top 20 Pharmaceutical Companies Generic Pharmaceuticals India produces around 60,000 generic brands in over 60 therapeutic categories made up of speciality and super-speciality therapies. There are approximately 5,600 licensed generic manufacturers and manufacturers of over 500 different active pharmaceutical ingredients. 1 According to McKinsey the India pharmaceutical market will be worth USD 55 billion by 2020 . This figure was recently revised from their 2007 report which reported a market value of USD 20 billion. Biologicals In a 2011 study by BioSpectrum the Indian Biopharma sector generated revenues of approximately $2.3 billion. Vaccines have a significant proportion of the market, however the 1 biosimilars market is estimated to reach revenues of $1 billion market by 2020. McKinsey estimate this market to grow to $3 billion by 2020, however the recent revenue report from BioSpectrum looks like this will be an underestimate. India?s success in this sector has been in the in-licensing of technology from China, Cuba and South Korea as well as it?s manufacturing and labour cost savings. The Indian Department of Biotechnology formally refers to Biosimilars as ?Similar Biologics? and this report will follow the same protocol. Rank Company R&D Pipeline Products Biocon Diabetes, Oncology Insulin, EPO, GCSF, Streptokinase, 1 monoclonal antibodies, API 2 Serum Institute of Vaccines: meningococcal A, Meningitis, Vaccines: bacterial, viral, recombinant & India Bladder Cancer, Pneumococcal, combination, Anti-sera, plasma, anti- Recombinant GCSF, Interferon Alpha, cancer EPO 3 Panacea Biotec Oncology: breast, brain, ovarian, HIV/AIDS, TB, Lymphatic Filariasis, pancreatic, prostate, colorectal - TBC Nephrology, Diabetes, Cardiovascular, pain, osteoporosis, respiratory, vaccine 4 Reliance Life SiRNA, Monoclonal antibodies Plasma proteins, EPO, Interferon alpha, Sciences R-GCSF, oncology, steroids, hormones, peptides www.ukti.gov.uk page 7 of 28 India - Biopharma Rank Company R&D Pipeline Products 5 Syngene Not applicable - CRO International 6 Bharat Biotech Malaria Vaccine Candidates, PVcII, Vaccines: Pentavalent, Typhoid,, Rotavirus Vaccine Candidates, ORV116E, Poliomyelitis, Anti-rabies, rhEGF, Anti-infectives, Lysostaphin 7 Indian Information not available Vaccines: rabies, MMR, Hepatitis B, Immunologicals 8 Shantha Biotech Vaccines: cholera,Hib,DTw-Hib, DPT-+ H Infectious diseases, oncology, (Sano Pasteur vaccine Group) 9 Jubilant Life Oncology, Cardiovascular and Diabetes API, Advanced intermediates, ne Sciences chemicals, radiopharmaceuticals, 10 Cadila Pharma Conventional and recombinant vaccines, Gastrointestinal drugs, topical Anti cancer bio-therapeutics preparations, 12 Table 2: The Top 10 Indian Life Science companies developing Similar Biologics & Pharmaceuticals Other notable companies selling or developing similar biologics are Dr Reddy's Labs, Intas Biopharmaceuticals, Lupin Pharma, Cipla and Wockhardt. The driving force for similar biologics, is the expectation of domestic and foreign markets demanding the generic version of biological drugs. At this point in time, this has not materialised significantly in the USA or European markets. A concern with the development of these drugs however is not only the cost, but also the potential competition within India and other countries such as China and South Korea. A new area being discussed and suggested is the development of ?bio-betters?, second generation biopharma products that improve on the existing biopharma product through areas such as absorption time, minimisation of side effects etc. Vaccines India currently manufacturers 50% of the world?s paediatric vaccines for UNICEF and WHO. The most prominent manufacturer is The Serum Institute of India currently the world?s largest producer of measles and DTP vaccines. They carry out their own research and development and recently announced the availability of a pentavalent vaccine at $1.75 per dose. Despite India being a major producer of vaccines, India has a very poor record of penetration into its own home market. This is however expected to change as internal demand and health insurance becomes more freely available. The current market estimate is USD 250 million, 1 expect to grow to USD 1.7 billion by 2020. R&D based Pharmaceuticals Officially there are approximately 270 R&D focused pharmaceutical companies in India including multinationals, government-owned firms and private companies. The definition of R&D also applies to the large number of generic manufacturers that develop their own formulations and drug delivery systems and it is not possible to be more specific when www.ukti.gov.uk page 8 of 28 India - Biopharma considering R&D in terms of describing companies working on new chemical and biological entities (NCE & NBE). Companies developing their own NCE or NBE is much lower and tracking these companies is difficult. It is however estimated that they range between 15-20 companies or so. Some of these companies are a mix of pharmaceutical companies and contract research companies where some of contracting companies have started to develop their own internal drug discovery pipeline. There are also companies from other industrial sectors such as agriculture and bio-informatics that are either entering or considering entering this sector as well as a number of SME?s working in the various science parks across the country. Company Industry Sector Pipeline Note Strand Life Sciences CRO N/A Translation medicine research oncology with MSCC V Life Sciences CRO N/A Discovery for client Technologies Anti-migraine, Anti-TB, Lupin Pharmaceutical Anti-psoriasis agents, herbal & synthetic routes Anti-diarrhoea, Glenmark Pharmaceutical diabetes, asthma, Pharmaceuticals COPD, pain, MS Aurigene CRO Oncology, Rheumatoid arthritis, cancer, anti- infectives, anti-viral Advinus CRO Metabolic, A Tata Enterprise Therapeutics in ammatory, neglected diseases Collaborative Suven Life Sciences CRO CNS research with Eli Lilly. Fee-for-service AZ, BMS, J&J, Pfizer, Abbott, Eli Lilly, Lundbeck, Reviva, Theravance, Onconova, Kareus. Dr Reddy?s Pharmaceutical Bacterial infections, metabolic disorders, pain & in ammation Piramal Life Pharmaceutical Oncology, Sciences in ammation, diabetes, infectious diseases Wockhardt pharmaceutical Antibiotic www.ukti.gov.uk page 9 of 28 India - Biopharma Company Industry Sector Pipeline Note Sun Pharma pharmaceutical Anti-allergy, anti- Advanced Research in ammatory, anti- convulsant, muscle relaxant Table 3: Snap Shot of Companies Carrying out their own Drug Discovery & Development The companies listed in Table 3 is a non comprehensive list of organisations developing their own drugs. Other companies that are thought to be developing their own pipelines include Jubilant, GVK Biosciences, Syngene, iGate, V Life Science Technologies, Zydus Cadila but it has not been possible to validate this information. In July 2010, Ranbaxy?s New Drug Discovery Research (NDDR) was transferred to Daiichi Sankyo India Pharma Private Limited as part of the strategy to strengthen the global research and development structure of the Daiichi Sankyo Group. While NDDR will now become an integral part of Daiichi Sankyo Life Science Research Center in India, based in Gurgaon, Ranbaxy will continue to independently develop and later commercialise the anti-malarial drug, Arterolane + PQP, which is currently in Phase III trials, and will also explore the further development of late stage programs developed by NDDR in the last few years, including the 2 development programs in the GSK collaboration . Many of the companies mentioned in Table 3, also provide exclusive contract discovery research work for their multinational clients, working on various types of research business models where they operate a share of revenues on milestones payments. Companies such as Dr Reddy?s, Piramel, Zydus, Wockhardt also offer different types of partnerships with overseas companies. Foreign Deals with Indian Pharma As part of overseas companies activities and interest in India, Table 4, highlights some of the deals that were completed in 2010. India Pharmaceutical Company Partnering Company Activity Piramal Healthcare Abbot Acquired domestic formulation business Zydus Cadila Abbot Commercialisation agreement Torrent AstraZeneca Commercialisation agreement for generics Biocon P zer Commercialisation biosimilar insulin Strides Arcolab P zer Off patent pharmaceuticals Claris Lifesciences P zer Off patent pharmaceuticals Aurobindo Pharma P zer Off patent pharmaceuticals Ranbaxy Daiichi Sankyo M&A www.ukti.gov.uk page 10 of 28 India - Biopharma India Pharmaceutical Company Partnering Company Activity Shantha Biotech Sano Aventis M&A Matrix Mylan M&A 13 Table 4: India Pharmaceutical Deals 2010 Stem Cell Industry The growth of the Indian stem-cell research market is estimated to be at 15% and it is 16 expected to reach $540 million by 2015 . There are approximately 40 public institutions working in this area. Private companies and public institutions including, Reliance Life Science, Stempeutics, LV Prasad, inSTEM, Stemcure, ANSA, AIMS, CMC Vellore, JNSC, JNACR, NCPS as well as a number of stem cell banks. Whilst India has guidelines on the use of embryonic stem cell, they are not able to prohibit the usage of stem cell therapy or research carried out without proper procedures. The Stem Cell 14 Research Forum has stated that there are currently 15 registered clinical trials taking place in India, however a recent report by The Telegraph of Calcutta has noted that the first officially 15 registered trial started in April 2011 . It has not been possible to clarify the reason for this discrepancy in trial numbers. Stem cell treatments in India are widely available even through well respected hospitals. India probably has limited experience in the area of allogenic stem cell however it does have significant experience in autologous stem cell therapies. Fig 1: Value chain of the Indian stem cell research industry www.ukti.gov.uk page 11 of 28 India - Biopharma INDIAN CLINICAL TRIALS INDUSTRY (CRO) India has been involved in clinical trial work since early 2000, however the streamlining of trials have only been enacted by the authorities in 2005 and again in 2010. Market Size The size of the market is estimated to be around $400-600million for PII-III trial, though some commentators have indicated this to be even as low as $100million. In a recently article in the 3 Time of India , India hosted 1,400 clinical trials compared to the USA with 52,107 and China with 7,356 up until the beginning of 2011. This figure is most probably made up of additional services that Indian CRO?s carry out such as BABE, ?Bioavailability bioequivalent? studies otherwise known as PK studies in the West. The largest and most successful CRO in India is Quintiles. The smaller Indian based companies struggle to attract business to the sector. There are other CRO organisations that have their operation in India but are headquartered outside of the country such as Semler Research and PRA based in the USA and ECCRO headquartered in the UK. Despite the challenges that India faces, India offers significant cost savings of up to an estimated 60% off international studies and the usage of the market will at some point change. Trial Registration Single regulatory approval for carrying out clinical trials is managed by the Clinical Trials Registry of India (http://ctri.nic.in/Clinicaltrials/login.php) and registration must be made before the first patient is recruited. The Clinical Trials Registry captures the details of Indian investigators, trial sites, Indian target sample size and date of enrollment. After a trial is registered, all updates and changes are recorded and available for public display. In multi- country trials, where India is a participating country and the trial has been registered with an international registry, the sponsor is still expected to registered the trial with the CTRI. India focuses on PII-III with limited PIV activities, mainly due to lack of experienced physicians in the pharmacovigilance field. Phase I trials are not allowed to be carried out in the India, if the molecule was not developed in the country. This regulation was put in place to avoid the possibility of using Indian patients as ?guinea pigs?. Some CRO companies do however still have their own PI units for work carried out for international as well as domestic clients. Indian regulators train under EU and US regulators and if a trial has already been approved by the other authorities such as the EMEA, MHRA, FDA, TGA the Indian regulator is far more likely to look favourably on approving the trial in India. Patient Recruitment Despite India being suggested as an ideal location for carrying out clinical trials because of its large population this does not translate into high patient recruitment. India struggles behind the population numbers for recruiting suitable patients. Many of the trials carried out in India by the CRO industry are actually for non-India pharmaceutical companies as part of their global studies. In trials that involve 2 or 3 countries, India enrolls no more than 50% of the patients. India?s own domestic pharmaceutical companies are thought to carry out their own trials within company and don?t often see the value of outsourcing such work. www.ukti.gov.uk page 12 of 28 India - Biopharma In the past some CRO?s have abused their trusted position with the regulator, and the industry is extremely sensitive to being criticised for ignoring patient?s rights. The regulators now look at the data generated from other country trials and have an age limit for not allowing those over 65 years old to enter trials. To avoid further abuse, information is now widely shared amongst other regulatory authorities to ensure that there is no deception when carrying out trials in India. Clinical trials can be performed by any institution in India, typically it takes between 3 to 9 months to receive an approval by the authorities, though the average is usually quoted as 5 months. It is more usual to pick an institution via the reputation of the investigator, though in some instances a client also requests specific institution. The ethics committee is made up of two parts, the scientific committee and the ethical committee. Ethics committee approval meetings normally meet once a month or once in every two months depending on the institute. All documentation in India is submitted in English, only the patient facing documentation is in the local language. www.ukti.gov.uk page 13 of 28 India - Biopharma REGIONAL CLUSTERS & SCIENCE PARKS India has a number of regional biotech clusters and science parks. In a programme supported by the Indian government?s Department of Biotechnology 5 incubation centres have been set up as part of a public private partnership. City State Notes Lucknow Uttar Pradesh Indian & USA companies, a mix of ago-bio and healthcare companies including DNA banking, GMP stem cell facilities, Hyderabad Andhra Pradesh Alexandria Knowledge Park & Genome Valley Kochi Kerala Pilot facility to promote traditional medicine, medicinal herbs, spices Bangalore Karnataka To be structure into three components, Institutional & Research & Development Block; Biotech Incubation Centre and Common Instrumentation Facility Himachal Pradesh Shimla Not available 17 Table 5: Government supported science parks The Alexandria Real Estate Equities Inc property group a well known US manager of lab space are supporting and development of lab space in Hyderabad and Bangalore as well as possibly over locations in India. BIO CLUSTERS Not all regions have government supported science parks, however some clusters have developed either through local government support or a natural pooling of talent and skills in the region. New Delhi Ahmedabad Mumbai Hyderabad Bangalore www.ukti.gov.uk page 14 of 28 India - Biopharma The states of Maharashtra and Karnataka tend to dominate the biotech industry clustering. Whilst Maharashtra doesn?t have a national government science park a number of biopharma companies are clustered in this area, The Serum Institute of India dominates this region, whilst Biocom dominates Karnataka. Cluster Region States Northern Cluster Delhi, Haryana, Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Rajasthan Eastern Cluster N/A Southern Cluster Andhra Pradesh, Karnataka and Tamil Nadu Western Cluster Maharashtra, Gujarat and Goa 2 One of the most well known clusters in India is the Genome Valley covering an areas of 600m 4 based in Hyderabad . This region is made up of global and Indian biotech companies. The two major parks along this valley is the Alexandria Centre for Science and Innovation and the 5 IKP Knowledge Park . The companies on these parks are made up of smaller Indian biotech/ biopharma enterprises as well as contract service providers. The IKP Park offers access to common equipment and reduced rates for start up companies as well as access in-house funding. The largest overseas organisation on site is the USA Pharmacopia, where they develop their own reference material. As a rough rule of thumb, you can classify Hyderabad, Pune, Bangalore and Mumbai as cities where R&D and manufacturing work is carried out. The headquarters for the pharmaceutical companies tends to be based in Mumbai. www.ukti.gov.uk page 15 of 28 India - Biopharma GOVERNMENT & REGULATORY BODIES Under the Ministry of Science and Technology there are three major departments: ? Department of Science & Technology (DST) ? Department of Biotechnology (DBT) ? Department of Scientific & Industrial Research (DSIR) All Departments have their own National Laboratories and also have their own funding programmes. In addition to these departments there are 25 autonomous departments with 6 interest in the life science field . Under the Department of Science & Industrial Research is the Council of Scientific and 7 Industrial Research (CSIR) , whose remit is to support the promotion of indigenous technologies and resources. It has 38 public funded laboratories with a budget of $1billion. The CSIR website, does not provide an exhaustive link to the autonomous institutes, and therefore only the following are sites have been highlighted: Institute Website Institute of Genomics & Integrative Biology www.igib.res.in The Indian Institute of Chemical Technology www.iictindia.org Centre for Cellular & Molecular Biology www.ccmb.res.in Institute of Microbial Technology www.imtech.res.in The Department of Biotechnology, remit is to promote and accelerate the pace of biotechnology in the country. They fund a number of R&D projects, as well as the development of the infrastructure for the industry. The department?s interests also includes agriculture, healthcare, animal sciences, environment, and industry. They operate 9 autonomous institutes which are listed on their website as well as their grants and awards www.dbtindia.nic.in. Regulations The Drug Controller General of India (DCGI) is responsible for the regulation of drugs sold in the Indian market. The information for New Drug Application (NDA), Biologicals, Clinical Trials can be found on the Central Drugs Standard Control Organisation www.cdsco.nic.in . The India Pharmaceutical Association, www.ipapharma.org/Regulations.aspx also provides a comprehensive list of governmental regulatory guideline and authorities. India is made up of a mix of public and private healthcare providers. The price reimbursement of drugs is covered by the Drug Prices Control Policy 1995 (DPCP) Order, where more information can be found on the National Pharmaceutical Pricing Authority?s website, www.nppaindia.nic.in/index1.html . www.ukti.gov.uk page 16 of 28 India - Biopharma FUNDING Private equity and VC funding in India is a relatively new activity, with a number of interested parties entering the market. Much of the money has historically been used to invest in the ICT industry, where India has been able to demonstrate value as well as a fast return on the investment. The life science sector?s risks has meant that there is limited angel funding for biotech companies and the government is trying to fill this gap. The public sector currently funds around 10% of projects that involved Private Public Partnerships but this is expected to rise to over 30% in the next few years. Public Funding The Department of Biotechnology (DBT) www.dbtindia.nic.in provides soft loan support for companies working in this areas: 1) The Small Business Innovation Research Initiative (SBIRI) www.sbiri.nic.in, grant invites proposals for early stage, pre-proof of concept research which leads towards the commercialisation of technology. This grant is available to Indian companies or jointly with partnerships that have a shareholding of a minimum of 51% by Indian citizens. This opens the door to overseas institutions accessing this funding with the right partner. 2) A second funding stream from government provides support under a scheme call the Biotechnology Industry Partnership Programme (BIPP) www.birapdbt.nic.in for a government partnership with the biotech sector working in high risk discovery and innovation. The government contribution is between 30-50% of the industry costs. Similarly, 51% of the shares must be held by Indian citizens. The Indian Department of Biotechnology supports international collaborations and has an MOU with the UK?s BBSRC as well as the Wellcome Trust. Under the BBSRC?s agreement, areas supported are in Food Biotechnology, Vaccines for communicable and non communicable diseases, diagnostics for infectious and non-infectious diseases, bioprocessing as well as down stream processing and exchange of information on technology transfer. The Wellcome Trust agreement relates to a Fellowship programme and a programme to support affordable healthcare products. Whilst the public funds have typically been designed for the SME company, some of the larger Indian biotech companies are also able to access these funds. There are a number of different funding programmes, run by the various Indian government departments. The programmes listed below, while not exhaustive gives an indication of the extent of the different funds available to Indian companies. Obviously each programme comes with its own application criteria and may not operate the 51% share ownership programme. This list is also liable to go out of date, should the Department remove the programme. www.ukti.gov.uk page 17 of 28 India - Biopharma FUNDING PROGRAMMES OF DST, DBT & DSIR TDB - Technology Development Board The TDB, created in 1996, aims to manage and fund Technology Development and Application. It invests in equity capital and also gives soft loans to industrial concerns, cooperatives and other agencies, which are involved in the development and commercial application of indigenous technology, or adapting imported technology to wider domestic applications having common good as the cause. TIFAC - Technology Information Forecasting & Assessment Council TIFAC is an autonomous organization under the DST. It aims to keep a technology watch on global trends, formulate preferred technology options for India and promote key technologies. HGT - Home Grown Technologies Falling under the ambit of TIFAC , the Home-Grown Technology Programme aims to give financial, techno-managerial and patent related support to deserving technology development projects for pilot operations or/and significant improvement to existing processes and operations. This part of the ERAwatch, European Commission?s programme. PATSER - Program aimed at Technological Self Reliance The aim of PATSER is supporting industry for technology absorption, development and demonstration. It also helps builds indigenous capabilities for development and commercialization of contemporary products and processes of high impact. TePP - Technopreneur Promotion Program The program jointly operated by DSIR and DST has the objective of tapping the vast existing innovative potentials of Indian entrepreneurs, to assist individual innovators to become technology based entrepreneurs and to assist in networking and forging links for the commercialization of their developments. Note: These programmes have not been verified. 18 Table 6: Government Funding Programmes Private Funding The Indian private funding environment is complex with the majority of funds being supported by High Net Worth Individuals rather an institutional investors. These funds typically come from family businesses that have money based either in India or overseas. On an individual basis, Indian investors are limited to being able to invest up to a maximum of $200,000 overseas. It is considered unlikely that Indian funds would travel to the UK though not inconceivable if the family has money outside of the India. Whilst the criticism from prospective investees is that Indian companies have little appetite for long term investments and look for returns within 4 to 5 years, the sentiment from the investor community is that this is beginning to change. There also appears to be an appetite from investors to structure an India / UK fund for the life science sector. In the case of family money that exists outside of the country, there is more of an appetite to invest for longer periods of time and into high growth markets. Private funds in the biotech sector appear to be in the range of USD 120-150 million with a transactional base of USD 5-15m, and look to exit either through a trade sale or the public markets in India or overseas. As you would expect with any investor, these individuals are well educated and shrewd operators, are looking for the best in class and understand the dynamics of the local market and sector. For a UK company to access Indian funds they would need to look at developing a partnership or collaboration with an Indian company, where an element of the work is done in India. An ideal collaboration would be where the UK company is providing a technological advantage to provide an edge over growth in the existing industry. www.ukti.gov.uk page 18 of 28 India - Biopharma Regulations dealing with the transfer of funds and joint ventures are handled by the Ministry of Commerce & Industry, Department of Industrial Policy & Promotion (www.dipp.nic.in). The are tax implications for the different ways in which a company is structured and incorporated in India and professional advice needs to be sought to fully understand these issues. Corporation Funds Domestic and overseas corporate funds in India have traditionally been around the IT space with overseas investors such as Intel Capital, SAP Ventures and Siemens Venture Capital. 8 Unilever recently announced a VC fund for consumer goods in India . Reliance Venture Asset Management, with an estimated $150m plans to invest in 2012 in areas such as healthcare, 10 aerospace and defense . It is estimated that there are around 117 private equity and venture capital funds in India. The concern at the beginning of 2011 was that many fund managers would fail to raise money due 9 to an over crowded market . At the time of writing this report, it is too early to verify the success of these funds capitalisation. www.ukti.gov.uk page 19 of 28 India - Biopharma MARKET ANALYSIS AND OPPORTUNITIES India is acknowledged as a market leader in the generics field with an estimated CAGR of 10-15% over the next couple of years. Historically these pharmaceutical companies gained their entry into the generics field by circumventing the patent position of the original drugs when India was not a signed up member of TRIPS. During this time, these companies secured their position in the Indian market by creatively developing new formulations, building their brands and distribution networks. Over the years, the competition in the internal market has forced many of the larger generic/API manufacturers to look overseas to support their sales growth. The success of their overseas ventures, has been based on the developed world?s healthcare markets such as the UK and USA looking to control their drugs bill costs by increased usage of generic pharmaceuticals. Now that international pharmaceutical companies have entered the Indian market, the easiest and fastest way to gain Indian market share has been to buy a generic manufacturer either wholly or their product lines. This also provides the foreign buyer access to new product lines for their international market. The vast majority of Indian pharmaceutical companies are family owned and have profited handsomely from this foreign company investment. With a number of these companies losing their Indian ownership or brands, the question is, where are the new developments for new drugs into Indian going to originate from ? Some companies have either set up or moved into the bio-similar space to capitalise on what is to be expected the next boon in the biological generics field. The technical know how for the development of these drugs is significantly different from their chemical cousins, however India has managed to excel in developing manufacturing processes that can meet these more demanding standards for drug production. India has not obviously shown itself to be a natural innovator, but rather more experienced in incremental developments in the pharmaceutical field. Whilst the figures vary, it is often quoted that there are approximately 250-300 R&D pharmaceutical companies. In reality these companies are actually spending their R&D on new formulations and drug delivery systems as opposed to R&D development in new chemical entities. Most commentators criticise India for its inability to innovative and whilst this is a separate subject that covers the education and culture, it cannot be fairly applied to all industry sectors. In the case of the pharmaceutical industry the achilles heel is that the cost for innovation is extremely high and though these companies are cash rich, they cannot afford to do all the work themselves nor have the appetite or the experience to do so. Two developments emerging from India however, one is that if the companies see a market opportunity rather than spending money on doing the R&D they will simply buy the technology or the company holding of the technology itself. This is apparent in the biotechnology field of bio-similars where India did not have the technology to develop these processes and bought the technology from China, Cuba and South Korea. The second area that is slowly emerging is that some of the larger pharmaceutical companies and contract research organisations are beginning to look at developing their own internal pipeline. Large companies such as Glenmark, Zydus, Sun Pharmaceuticals are spending money in the drug discovery field. There doesn?t appear to be a comprehensive list of drug discovery oriented companies but it cannot number more than 20, though anecdotally this may be an estimate on the low side. www.ukti.gov.uk page 20 of 28 India - Biopharma Interestingly some of the larger contract research companies such as GVK Biosciences, Jubilant who carry out R&D work on behalf of large international pharmaceutical companies have also started developing their own programmes. Glenmark Pharmaceuticals has shown itself to be competent in out-licensing its own compounds to overseas pharma as well as turning around in-licensed products and spinning these off to third parties as well. If this theme and success can be repeated by other Indian pharma and contract research companies then this opens up opportunities for UK drug discovery companies that would not have necessarily looked at the Indian market. Whilst India has not as yet produced its own NCE or NBE, the general belief is that this will be soon. Piramal Life Sciences are bullish that they will be the first Indian company to develop their own NCE in the next few years, though one commentator met, indicated that an unnamed company in India would achieve this in the next 12 months. Drug discovery is not necessarily the preserve of the larger companies, there are many SME?s doing drug discovery work and this requires further exploration. This is a much harder figure to qualify since some of these companies met at various forums, indicated they did not want to publicise their work at this particular point in time. The Indian government is keen to encourage the development of biotechnology, hi-tech, entrepreneurship into the market and various government bodies are providing funding to develop these areas. In some of the applications, the government body is stipulating that to access the fund the company must be at least 51% shareholding by an Indian national or NRI. In most cases the loan is soft money from the government without a claw back if the venture is not successful. There are numerous types of funding grants and it would require someone experienced in navigating the government bureaucracy to identify the appropriate funding programme. There are a growing number of private funds either set up or being set up in India, and though the investors are more interested at a short term, the life science sector is an area that is closely being looked at. The criticism from other parts of the industry is that fund investors are risk adverse and don?t want to invest in risky ventures such as biotechnology developments. For all the concerns over VC funds, there is money available in India from high network individuals to corporate funds. The clinical trials market in India has disappointed both the industry and investors for the past 10 years and though drug trials are carried out in the market, India is certainly not attracting the number of trials that it could manage. Unfortunately the sector has suffered because of past concerns over quality and disregard of patients. As a result government stepped into regulate the sector to ensure that patients are protected. Critical to the success of the industry will be ensuring that quality is raised and maintained. India has much to offer as a location for global trials, not least the use of English and a cadre of doctors trained in overseas markets such as the UK and USA. Allied to the clinical trial sector are the support services such as medical writing and statistical analysis. A constant criticism of positioning valuable IP work in India is that the existing framework does not meet with international standard despite India signing up to TRIPS in 2005. Whilst the commentators met in India feel that there is no problem with IP filing and enforcement in India, this is not necessarily supported by pharmaceutical companies who are possibly exposed to having their drugs made available under a compulsory license. As problematic as this situation can be, in the case of early stage drug discovery companies, the legal group met felt that this should not be an issue. The development of IP in India can be assigned to the www.ukti.gov.uk page 21 of 28 India - Biopharma originating contractor and in fact is almost probably the way in which international companies that are carrying out their R&D work in India, currently operate. The development of the pharma/bio supply chain in India offers opportunities beyond considering it as a cheap outsourcing location. These opportunities and needs clearly have to be matched for India, but they vary widely from technology transfer to collaboration to clinical trials. Opportunities for UK Companies There are potentially numerous opportunities for UK biotech companies to operate in India. The market environment is however not necessarily easy to understand and the bureaucracy of the country can be bewildering. Without visiting India however, and talking to the companies involved in sector it is difficult to clearly identify the opportunities available. The following is a list of suggested areas where opportunities exist: Out-license Drug Discovery The opportunity to out license a development programme to an Indian pharmaceutical or contract research organisations offers the potential for the UK company to look beyond the traditional US, Japanese and European markets. Critically, as with all licensing deals, it has to match the needs and interests of the India pharmaceutical company. This has been much harder to pin down in terms of opportunity, since the Indian companies have indicated an interest in looking at all projects. In reality however, filtering the right partner will be dependent on: a) Does the research match that of the potential in-licensee ? This report has outlined some of the publicly available information on pipe line developments, however, it also illustrates that some companies don?t necessary focus on selected therapeutic area, but may just have an interest in the molecule. b) The risk appetite in Indian pharma for R&D is low and the offering has to be as de-risked as much as possible, preferably beyond Phase I. If the Indian pharma can do something on the molecule and turn this around in a short period of time, perhaps 3-4 years, then there is a higher chance of success. c) Indian pharma companies are not looking to globalise as R&D operators as yet. If the molecule has particular significance for the Indian market, again this would gain higher interest. Areas such as infectious diseases, TB, malaria or chronic diseases that affect India such as coronary heart disease, asthma, diabetes, and cancer might be of interest. Funding Opportunity Though there has been reticence from the private sector to fund developments in the pharma space, this is changing. Public funds is also an area worth exploring especially for companies that are willing to invest in setting up an Indian entity. By having an Indian partnership, this could open doors to funding streams as well as market access. There does of course have to be an Indian link, whatever way the funding structure works. CRO Opportunities Quintiles is the largest clinical trial company in India, but there are numerous smaller companies that would benefit from partnering with a UK CRO especially one that can offer training and quality standards to ensure that the work is done in a correct fashion. Partnering www.ukti.gov.uk page 22 of 28 India - Biopharma for UK companies, would raise their territorial footprint. Anecdotal evidence suggests that there is also a need for Indian companies to raise the level the standard of medical writing. Analytical Instrumentation For those Indian contract research companies, that are doing research on behalf of international companies, they will be looking for the next generation of instrumentation to help differentiate themselves in the sector. Indian national laboratories, will also be looking to maintain their scientific expertise and strength through overseas equipment. The report did not look at the sales and distribution channels for analytical instrumentation. All the major instrumentation companies however appear to have a footprint in the market. Technology Transfer Despite the concerns over IP, there are companies that are interested in, in-licensing overseas technology. This has been demonstrated with the bio-similar and vaccine industry and other segments in the life science sector are equally keen on acquiring new technology. The technology could be in any segment of the industry from stem cells to drug delivery systems. Indian phyto-pharma Although not covered in the report, India has a long tradition in indigenous healthcare called Ayurveda. Many serious pharmaceutical companies still produce Ayurveda herbal treatments based on phyto-biology and UK companies that have the skills to screen, research and improve yields can help develop this segment of the industry. Consultancy India is familiar with the use of consultants providing training in IT to providing skills in developing renewal energy. If there are areas that would help India life science companies gain an additional foothold, companies would pay for this service. Possible areas to consider are providing regulatory consultancy on how to enter the European market (licensing of products outside of India), working with the Indian government on developing regulatory guidelines, novel manufacturing process. www.ukti.gov.uk page 23 of 28 India - Biopharma INDIVIDUAL COMPANY OPPORTUNITIES Inbiopro Looking to in-license or buy High expression mammalian cell based platform / cell lines Products - Biobetters & NBE?s beyond proof of concept stage in oncology & RA Novel expression platforms such as Fucose knock-out cell lines, FAb Fragment expression in E.Coli Protein modification technology Novel formulation & drug delivery systems for existing biological blockbusters Large Biotech Company (Name withheld) Interests in the following therapeutic areas: Diabetes & Metabolic diseases Oncology Inflammation ( Arthritis, Psoriasis, etc) Immunology and other autoimmune diseases Nephrology Orphan diseases Would like to evaluate new technologies in: Pharmaceutical space Platform technologies Enabling technologies IKP Knowledge Park (NPO) Looking for technology that can be transferred to Indian companies. Technology Areas: 1. Therapeutics & vaccines in phase 1 clinical trials (infectious diseseas, cancer) 2. Biosimilars with significant data for regulatory approval (MAbs, therapeutic proteins) 3. Point of care diagnostics that can be low priced 4. Molecular PCR diagnostics - infectious diseases, genetic diseases 5. ELISA based diagnostics - infectious diseases, genetic diseases 6. Rapid diagnostics (paper strip tests) 7. Enzymes for diagnostics biochemical tests (GOD, POD, etc) 8. Enzymes with industrial applications 9. Economic and green production of pharmaceutical intermediates and API?s 10.Cardiac stents improvements, designs 11.Inexpensive medical devices Century Pharmaceuticals 1. Partnership on developing their own internal novel molecule for Asthma treatment www.ukti.gov.uk page 24 of 28 India - Biopharma Bharat Biotech 1. New vaccines in a variety of therapeutic areas Panacea Biotech 1. Vaccines & biological in-license interests 2. Therapeutic areas: Diabetes, pain management, oncology, antibiotics www.ukti.gov.uk page 25 of 28 India - Biopharma REFERENCES 1. McKinsey & Company, ?India Pharma 2020, Propelling access and acceptance, realising t r u e potential? 2. http://www.ranbaxy.com/researchndevelopment/overview.aspx 3. http://articles.timesofindiaties.com/2011-02-05/india/2836377_1_clinical-trials-registry- ctri-trials-account 4. www.genomevalley.in/default.htm 5. www.ikpknowledgepark.com 6. http://india.gov.in/sectors/science/ministry_science.php 7. http://rdpp.csir.res.in/csir_acsir/Home.aspx?MenuId=1 8. www.livemint.com/2011/06/24010937/Unilver-to-setoVC-fundin.html]. 9. www.livemint.com/2011/01/18001333/In-record-rush-funds-PEf.html]. 10. www.livemint.com/2011/ 11. BioSpectrum, Asia Edition Vol 6, Issue5, May 2011 12. Biospectrumindia.ciol.com:50080/content/CoverStory/71106091.asp & Company Corporate Websites 13. BioSpectrum, Asia Edition Vol 6, Issue5, May 2011, March 2011 14. http://www.scrfi.in/SCRFI_Introduction-8.aspx 15. http://www.telegraphindia.com/1110216/jsp/frontpage/story_13589821.jsp 16. Stem cell research & regulatory framework, January 2011, PharmaBiz 17. http://dbtindia.nic.in/uniquepage.asp?ID_PK=18 18. http://www.123biotech.com/biotechnology-funding-india.shtml www.ukti.gov.uk page 26 of 28 India - Biopharma Appendix I Indian government funding Indian healthcare spending for the year 2010-11 reached $4.82B, Increase of 12.4% from the previous year with more focus on AIDS control, mental health and prevention of diabetes and cardiovascular diseases programmes: HIV vaccine design program in India - Rs. 50 crore Agreement signed to jointly operate and fund this programme by The Translational Health Sciences and Technology Institute (THSTI), Government's Department of Biotechnology, and the International AIDS Vaccine Initiative (IAVI) Tuberculosis diagnosis, care and management of drug - $144M Funds given from Indian Government to Ministry of Health and Family Welfare for Revised National TB Control Program (RNTCP) Private Sector funding by SBIRI Lead Invent Technologies Private Limited, New Delhi - Computational design & development, for Tuberculosis Arbro Pharmaceuticals Ltd., New Delhi - Development and clinical validation, for Tuberculosis Oxygen Healthcare Research Private Limited, Ahmedabad - Development of the Novel H3 and other GPC receptor ligands for various therapeutic applications (Phase I) ABL Biotechnologies Limited, Chennai ? Phase I Sustained release drug delivery systems Actis Biologics Private India Limited, Mumbai ? Phase II Sustained delivery of MSP36 Ara Healthcare Private Limited, Gurgaon ? Phase I Development of therapeutic proteins Avesthagen Ltd., Bangalore ? Phase I hepatotoxicity screening Bharat Serum and Vaccines Limited, Mumbai ? Phase I Respiratory Distress Syndrome Frontier Lifeline Private Limited, Chennai - Research of Phase I homologous natural biomaterial Genomix Molecular Diagnostics Pvt. Ltd., Hyderabad - Instrument for the detection of malaria and other pathogens Healthline Private Limited, Bangalore ? Protein blend film for for burn wound management LeadInvent Technologies Pvt. Ltd., New Delhi - Study, design and development of Hit Molecules for cancer targets (Phase ? I) Mediclone Biotech Private Limited, Chennai - Production of Monoclonal Antibodies & Development of an alternate technology to Anti Snake Venom Serum (ASVS) Microbax (India) Ltd., Hyderabad - Probiotic tablets Navya Biologicals Private Limited, Bangalore - human serum albumin (HSA) Private sector funding by BIPP Torrent Pharmaceuticals Limited - Diabetes Drug ARA Healthcare Limited - Inflammatory Diseases www.ukti.gov.uk page 27 of 28 India - Biopharma TCG Life Sciences Limited - Asymmetric Synthesis of Hexahydrobenzophenanthrenes Amrita Therapeutics Limited - Compounds from Microorganisms Wockhardt Limited - Recombinant protein therapeutics Life Care Innovations Pvt. Ltd - Production of poly (lactide-co-glycolide) nanoparticles ( PLG- NP ) Serum Institute of India Limited - H1N1 antibiotics Amar Immunodiagnostics Pvt. Ltd. - Detection of autoimmune diseases Abexome - vitro phamacological Assay platform for biosimilars Revelations Biotech Pvt. Ltd - PCR technology for molecular diagnosis Bharat Biotech International Limited - Rotavirus Vaccine Candidate 116E Torrent Pharmaceuticals Limited - Clinical development of TRC150094 Biocon Limited - IN-105 tablets Panacea Biotec Limited - H1N1 pandemic influenza vaccine V-Life Sciences Technology Pvt. Ltd. ? Galnobax www.ukti.gov.uk page 28 of 28
Posted: 27 November 2011

See more from Medical, Health and Cosmetics Products in India

Expert Views    
Healthcare Opportunities in India   By UK Trade & Investment
Healthcare Opportunities   By UK Trade & Investment
Biotechnology and Pharmaceuticals sector   By UK Trade & Investment
Biotechnology and Pharmaceutical Opportunities in India   By UK Trade & Investment
Developments in the Indian BioPharma Industry   By UK Trade & Investment