Biotechnology and Pharmaceutical Opportunities in India

An Expert's View about Pharmaceuticals in India

Posted on: 4 Oct 2010

Recent developments in the life sciences sector in India indicate increasing business opportunities for the UK’s Biotechnology & Pharmaceutical sector.

Sector briefing Biotechnology and Pharmaceutical Opportunities in India Why India? India is a priority emerging market for UK Trade & Investment. Recent developments in the life sciences sector in India indicate increasing business opportunities for the UK?s Biotechnology & Pharmaceutical sector. Biotechnology The Indian biotech sector is in a unique crossroads. On one hand it is forced to meet the internal and more public-centered healthcare objectives of reaching out the right medication or treatment to the needy and on the other hand it is forced to remain English speaking population have all placed competitive in the international markets. India favourably in the global market. Biotechnology is the new sunrise sector in India and is poised to take the country into the Introduction to the Indian Biotech sector next big league of internal and international investment. The country has traditionally done Following the phenomenal success of its well in pharmaceuticals sector and this has information technology industry, India is fast helped evolve the biotech sector over the last emerging as an important player in the 10 years. A few years ago India had only 30 biotechnology sector in the Asia?Pacific Region. biotech companies worth talking about. Today The large pool of scientific talent available at a about 380 companies are active in the modern reasonable cost, a wealth of R & D institutions, biotechnology segment with combined a rich and varied bio-diversity, a flourishing revenues of about $4 billion. This revenue is pharmaceutical industry, strong IT skills and an expected to reach the $5 billion mark by 2010. UK Trade & Investment Sector briefing: Biotechnology and Pharmaceutical opportunities in India India is ranked among the top-12 biotech A number of far reaching changes are taking destinations in the world and is the third place to facilitate growth in the biotech sector biggest in the Asia-Pacific region in terms of further. India is becoming one of the most the number of biotech companies according to favoured destinations for collaborative R&D, a report by the Confederation of Indian bioinformatics, contract research and Industry (CII) and the consultancy firm KPMG. manufacturing and clinical research as a result of growing compliance with internationally harmonised standards such as Good Laboratory India is also gaining importance as a clinical Practices (GLP), current Good Manufacturing trial destination. The global clinical research Practice (cGMP) and Good Clinical Practices outsourcing market is projected to touch US$ 23 billion by 2011, with (GCP). A well-defined regulatory framework, consultancy firm, KPMG, estimating that India will corner 15 per along with an emerging stringent IPR regime is cent of this in two years. Also, according to a also contributing to this trend. joint study by FICCI and (E&Y) Ernst and Young, the industry-sponsored Phase II, Phase III clinical trial study sites in India have grown Segments by 116 per cent over the last 15 months, with the country moving from rank 18 to 12 across BioPharma the 60 most active countries. The Biopharma segment contributes a large portion to the Indian biotech segment both in India participates in 7 per cent of the global terms of the number of companies as well as Phase III trials and 3.2 per cent in the Phase II its contribution to revenue. The biopharma trials with industry-sponsored trials. segment mainly comprises of vaccines and non-vaccine therapeutics, some novel products India has been a recent entrant into the elite 6 and contract services. countries group who have successfully decoded the human genome indigenously, the others Vaccines being the US, UK, China, Canada and South Public health consciousness and economic Korea. perspectives have automatically enhanced the India houses about 380 biotech companies, of importance of vaccines world over. India which 198 are in Karnataka with 191 in presently has about 15 large vaccine Bangalore alone. Clinical data management, manufacturers who work on over 50 brands for drug discovery and low-cost production 15 different vaccines. The vaccine business manufacturing are some advantages that contributes to over 50% of the biopharma Indian companies enjoy against their global business in India. Indian companies that counterparts. Nearly 40 percent of the biotech produce vaccines have been able to master the companies operate in the biopharma sector, followed by the bioservices (21 percent), requirements of good manufacturing practices bioagri (19 percent), bioinformatics (14 for macromolecules and are continuously percent) and lastly the bioindustrial sector (5 earning the goodwill of international percent). companies. Biogenerics Discovery research is leading to new molecules The Biogenerics market is a major future in place of generics. Pre-clinical development opportunity in economic terms for India, and presence of large animal facilities is set to especially to manufacture products at lower attract investments in biopharma and bio- costs, when a large number of global agritech segments. The challenges before the blockbuster biotech drugs are going off patent. sector are about securing private and public India is positioned well to take advantage of funding despite risk aversion among VCs this and garner a sizeable share in this pie. (venture capital funds). The industry is lobbying for the need to improve the regulatory Contract Services infrastructure, bio-manufacturing standards, Indian biotech companies carry out several clinical development capabilities, R&D contract services including R&D, clinical trials collaborations with US/European Union firms and manufacturing. India is fast becoming one and acceptance of Indian clinical data by the of the largest centres or hub for global clinical US Food and Drug Administration and the trials. Several factors including low costs, large European Agency for Evaluation of Medicinal patient pool, easy recruitment, strong Products of Europe. government support and strengthening of the UK Trade & Investment Sector briefing: Biotechnology and Pharmaceutical opportunities in India intellectual property environment are likely to Strengths of the Indian biotechnology raise the Indian contribution to global trials sector from 2% to 5% by 2012. ? Large reservoir of scientific human Statistics resource, that is, a strong pool of Presently India holds 2% share of the global scientists and engineers; biotech market. The sector has grown to a ? Cost effective manufacturing whopping capabilities; $4 billion in 2009-2010 indicating a ? Number of national research 52% growth y-o-y. Bio-pharma and agri-bio laboratories employing thousands of segments contributed to $3 billion and the scientists; centres of academic ancillary segment contributed to $1 billion. The excellence in biosciences; several sector, according to key industry experts is medical colleges, educational and expected to touch the $5 billion mark at the training institutes offering degrees and end of 2010-2011 as the country has become a diplomas in biotechnology, bio- hub for low-cost research for global agricultural informatics and biological sciences; and pharmaceutical firms. ? Presence of a well-defined and vibrant drugs and pharmaceutical industry; Year 2008-2009 ? Rich Biodiversity: India's human gene pools offer an exciting opportunity According to an industry survey, carried out by for genomics; the Association of Biotech Led Enterprises ? Fast developing clinical capabilities with (ABLE), the biotechnology industry in India the country becoming a popular notched up a growth of 18 per cent during destination for clinical trial, contract 2008-09, earning revenues of US$ 2.67 billion. research and manufacturing activities Exports accounted for nearly 60 per cent of the total business in 2008-09 and went up by Weaknesses of the Indian biotechnology almost 25 per cent to reach US$ 1.57 billion. sector The domestic business at US$ 1.09 billion registered a 10 per cent growth in the same ? Lack of venture capital period. ? Relatively low R&D expenditure by industry Segmental Statistics ? Missing link between research and commercialization The biopharma segment continued to account ? Doubts about the ability of Indian for the largest share of the biotech industry's products to meet International revenues. In 2008-09, the biopharma sector standards of quality accounted for a 65 per cent share of the total pie with revenues of US$ 1.73 billion. The bioservices sector registered a 31 per cent Top 25 Biotechnology companies in India growth in the period, while the bio-agriculture based on revenue sector grew by 24 per cent to reach US$ 329.33 million. The bioindustrial sector grew by Serum Institute of India 16 per cent to reach US$ 105.34 million and Biocon the bioinformatics sector grew by 15 per cent Panacea Biotech to touch US$ 48.48 million in 2008-09. Nuziveedu seeds Rasi Seeds Innovation Novo Nordisk Novozymes South Asia From the way the Indian life science industry Indian Immunologicals has evolved, it is imperative that India builds Mahyco on its strengths in manufacturing and services. Syngene International However, in order to be more globally Jubilant competitive and internationally visible India Shantha Biotech recognises the importance of innovation and Bharat Serum realises that this is the best time to take steps Eli Lilly towards discovery in the life sciences and Bharat Biotech biotechnology sector. Themis Medicare Aventis UK Trade & Investment Sector briefing: Biotechnology and Pharmaceutical opportunities in India Haffkine BioPharma research institutions are not well Rossari Biotech equipped to undertake innovative and GSK translational research. India needs Ankur Seeds support in setting up support, both in Advanced Enzymes terms of scientific expertise pool and Ocimum Biosolutions also incubation centres with seed Nath Seeds funding to help develop ideas to Concord Biotech innovation and then to revenue. Opportunities ? Another area of concern for the developing life science industry in India is the lack of public-private Challenges in India that could be initiative. The existing public-funded opportunity for the UK bodies in India are not too industry friendly. On the other hand the industry In this competitive environment and in this in India, while seeking collaborative knowledge driven sector, no country has the luxury to be self-sufficient. Several health partners, limit their explorations within related issues can be resolved primarily Indian public funded bodies and explore through international collaborations and opportunities abroad. partnerships. India looks for international support in partnering with private companies, ? The Indian industry gives the joint IP generation, harmonizing regulatory impression of being conservative to processes, smooth movement of biologics and risk. This to an extent stems from the leverage better markets for biotech products reluctance that banks and private and processes. investors demonstrate while investing in The growth in clinical trials in India will give biotech ventures. R&D and innovation is rise to demand for ancillary or dependent not a common feature in the industry segments of the life science industry. These include diagnostics market, education sector and seems more restricted with public and data management. funded bodies. Data taken out on ? India faces a challenge in harnessing patents till 2007 showed that there university talent to right and relevant were 424 Indian pharma companies use in the industry ? whether towards who had registered patents and only 19 research or towards services. Indian biotech companies of which 2 were for a research institutes have traditionally product patent, 9 for process, 7 for been good at handling serious research product and process and just 1 for a products but have limitations in training design. their students to bridge gaps in the ? Angel investments for companies that requirements of the industry. Hence, whi are focussed purely on research with a le the country has been able to revenue model to stem out of their produce a strong scientific workforce, product or technology 7-8 years down the system is not strong enough to the line is quite a task to find in India. produce scientific leaders. India?s International competition makes it biggest need at this point is a balance in critical for India to innovate technology its universities. A balance of the right rather than catch up on innovative size and right skill in course content and technology, which makes funding at an the staff in training to churn out an early stage of the idea critical. Concepts employable set of students year after like seed and start-up funding and risks year. and reward sharing are new in India. ? Translation of research ideas into ? A strong science-based sector needs to commercially viable projects has have a streamlined, transparent and been another area that India is focussed flexible-yet professional regulatory on setting right. Most academic and UK Trade & Investment Sector briefing: Biotechnology and Pharmaceutical opportunities in India and monitoring system to be a Karnataka jointly contribute 27% to the revenue of the sector. guiding force for growth. The Indian The other key clusters include Mumbai and regulatory system has seen a lot of Ahmedabad in the West (Maharashtra and changes and structure over the last 10 Gujarat respectively), Hyderabad (Andhra years, but there seems to be room to Pradesh) in the South and the area in and shape it further to take on challenges around New Delhi in the North. and face tough competition to achieve The Western belt houses companies that are global recognition. India faces an urgent large pharmaceuticals with a prominent need to increase the pool of dedicated manufacturing and R&D base, who have active interest in pursuing the manufacture of experts in the regulatory space who biogenerics. have expertise and experience in Hyderabad has several vaccine manufacturers handling biologicals and set up systems and other large biotech companies involved in for training and management of risk. research. The regions in and around New Delhi house several key research centres and Government initiatives univerisites that are involved in research. The Government of India has set up the Karnataka ?Bangalore Department of Biotechnology (DBT) in the Biotechnology, post the ICT success, has Ministry of Science and Technology in 1986. emerged as a recent rapidly expanding sector Public funding in the Science and Technology in Bangalore. The city accounts for over 50% sector has been on the rise by 8 times in the of the 380 biotech companies in India. The city last 20 years. The Indian government also has revenue of over $550 for 2008-2009 which provides several fiscal initiatives including is over 20% of the total biotech revenue for relaxed price control for drugs, removal of the country. foreign ownership limits, subsidies on capital expenses, and tax holidays for R&D spending. Bangalore is the country?s largest cluster, the There are several Indian states including city boasts of 198 biotech firms. Andhra Pradesh, Karnataka, Maharashtra, Himachal Pradesh, Uttar Pradesh, Kerala and Biocon, the nation?s leading biotech company is Gujarat who have introduced additional headquartered in Bangalore. financial and policy initiatives to encourage investment in biotechnology. Some of the key life science companies to look Government bodies like the DBT have out for in Bangalore include: Advinus introduced several initiatives in creating trained Therapeutics, Astra Zeneca, Aurigene human resources, institutional infrastructure, Discovery services, Biocon India, Jubilant and strong research base in areas including Biosys, Metahelix Life Sciences, Strand Life agriculture and forestry, human health, animal Sciences, Strides Arcolab and Xcyton productivity, environmental safety and Diagnostics industrial production. The Government of India has brought out a Government of Karnataka is investing Rs. few avenues to encourage investment in the 5,500 crore in Bangalore Helix Biotech park Indian biotech sector and also promote R&D which is spread over 106 acres at the and innovation in the sector. Also, direct Electronics City, off Hosur Road in Bangalore. investment in industry R&D is a new step that Bangalore can boast of good Universities like has been taken to boost R&D support to the the Indian Institute of Science, JNCASR, NCBS, Indian industry. University of Agricultural Sciences. ABLE the The DBT has decided to dedicate 1/3 of its Trade association for Biotech Industry is budget to public-private partnership headquartered at Bangalore. programmes. Bangalore has opportunities in Contract Research Space and lot of potential in the Stem Cell area. Key Biotech clusters in India Andhra Pradesh - Hyderabad Bangalore, in Karnataka is the Biotech capital for India. India houses 380 biotech companies Biotechnology is an important industry in of which a majority of 198 are in Karnataka Andhra Pradesh. There is a high concentration and 191 in Bangalore alone. Bangalore and of biotech companies producing recombinant UK Trade & Investment Sector briefing: Biotechnology and Pharmaceutical opportunities in India therapeutics for human consumption. It also Chemical and Biotechnology ? Sastra has the second largest recombinant DNA University. therapeutic production facility in the world, which is also being used by multi-national Tamil Nadu has opportunities in the area of companies to produce their own recombinant Stemcell Research and Nanotechnology. products. Andhra Pradesh is called ?Bulk drug Capital of Western Region India?. Andhra Pradesh has a dominant Maharashtra position in the bulk drugs and pharmaceutical The state accounts for 40 per cent of the sector with Hyderabad accounting for nearly country' pharmaceuticals output. It has strong one third of India's total bulk drug production. research capabilities and accounts for over 30 Hyderabad has witnessed infrastructural per cent of country?s patents. It has a presence development in the biotech domain wherein of reputed companies focusing on the biotech the Knowledge Park, the Biotech Park, Genome sector including Wockhardt, Nicholas Piramal, Valley and other projects have come up giving Cipla and Lupin, among others and state is the city an advantage over others. Hyderabad setting up biotech parks at Hinjewadi, near is also a house for research and development Pune. Major opportunities have emerged in the Centres like Centre for Cellular and Molecular pharmaceutical sector, primarily in the areas of Biology (CCMB), Indian Institute of Chemical contract research, contract manufacturing and Technology (IICT), International Crop Research clinical trials. State boasts of Low costs, strong Institute for Semi-arid Tropics manufacturing base, well developed laboratory (ICRISAT),Central Food Technology Research and R&D infrastructure, a strong resource pool. Institute (CFTRI) and Institute for Life sciences The backward linkages with the well-developed centre is based out of Hyderabad and have 32 chemicals and petrochemicals sector is an laboratories and 12 research centres. (ILSC) added advantage. The Government of Andhra Pradesh offers opportunities in Therapeutics, Diagnostics, Gujarat Industrial Biotechnology, Inputs to the industry (hardware suppliers - Instrumentation and Gujarat accounts for 28 per cent of national Chemicals), Agricultural Biotechnology in the pharmaceutical production (2006-2007). First biotech space. state to manufacture APIs and finished dosage TamilNadu - Chennai forms. It is a home to 902 allopathic manufacturing units and 2,122 contract Tamilnadu is the first state to have introduced manufacturing units. Gujarat accounts for a separate Bio Tech policy. Tamil Nadu exports worth US$ 1.4 billion (2006-2007). It presents an attractive market for medical has number of clinical research organisations in biotechnology products as it accounts for about India and over 100 companies with WHO- 11% of the pharmaceutical market in the compliant manufacturing units, academic and country. The Government of Tamil Nadu has research institutions providing over 4,600 also announced the establishment of technically-skilled manpower per annum. Biotechnology Enterprise Zones (Bio-Valleys) India?s largest biotech park of 700 acres being along the lines of Silicon Valley to exploit the developed at Savli, Vadodara. Key players are bioresources of the State. Chennai has some of Zydus Cadila, Torrent Pharma, Sun Pharma, the top pharma companies like Orchid Pharma, Intas Pharma, Alembic, Dishman Pharma. Shasun Pharma and Bafna Pharmaceuticals and few Biotech companies like ABL Biotech and Mumbai is home to the two major Proalgen Biotech. Tamil Nadu also has pharmaceutical associations including Indian reasearch centres like Centre for Drug Manufacturers Association (IDMA) and Biotechnology, Anna University Centre for Plant organisation of Pharmaceutical Producers of Molecular Biology, Tamil Nadu Agricultural India (OPPI). University, Coimbatore, Centre for Research in Medical Entomology, Madurai, Department of Biotechnology, School of Bioengineering, SRM University, Rajiv Gandhi Centre for Biotechnology, School of Biotechnology, Madurai Kamaraj University, School of UK Trade & Investment Sector briefing: Biotechnology and Pharmaceutical opportunities in India Future for India In September 2007, the Government of India approved the National Biotech Policy that focuses on overcoming lacuna in the sector and enhance synergies across sectors. India has not been able to discover and own too many useful genes to launch programmes. Discovery and innovation are long-term goals for the country, which is focussed in the medium and short term on acquisitions of important genes and collaborations with right internal and international partners. This will boost the research space, also give room to improving the country?s in-licensing capabilities and will help in technology-transfer. UK Trade & Investment Sector briefing: Biotechnology and Pharmaceutical opportunities in India Pharmaceuticals Aspects of Intellectual Property Rights (TRIPS) agreement, the country was given 10 years to India has always been an important contributor modify it IP system and comply with the global to the pharmaceuticals sector with the standards. In January 2005, the Indian patent domestic market showing unprecedented system was regularised and India now growth in the last few years. The sector is recognises product as well as process patents. growing at 10-12% per annum with growth in The patent period has also been enhanced to population, specifically increasing number of 20 years. These legal changes in India have old people, rapid urbanisation, better now made it considerably difficult for the purchasing power with the middle income country to continue manufacturing low cost group and the focus of the country towards generics in the above fashion. Indian innovation and research. companies who wish to copy the original The growing generics business of the pharma formula will have to pay high licence fees to industry is expected to be the largest driver of the owner. However, this encourages growth in future too, with a large portion of multinational companies from across the globe patented drugs losing their patent priviledge in to confidently come to India to work on their the next few years. research and innovation by partnering with Indian companies or sourcing support from The legal system in India them. For several years post independence, the Indian pharma industry was monopolised by As a consequence of these major changes to multinational companies. There were few state- India?s drug patent legislation, the country?s owned Indian companies that manufactured pharmaceutical industry is undergoing a bulk drugs with support from WHO that process of re-orientation. Its new focus is coexisted. In the early 1970s the Indian increasingly on self-developed drugs and government abolished the patents for products contract research and/or production for and made lenient patents for processes, as a western drug companies. Indian companies, measure to encourage growth of the local have been rapidly increasing their industry. The patent period was also reduced manufacturing capacities and have made India to 7 years. The government also increased almost self-sufficient in medical needs. These import duties on medicines from abroad and changes have also brought back several of the forced multinational companies to reduce their multinationals who had left India during the share in Indian companies to 2/5. unfriendly patent system. These companies are However, in the 1980s, the growth of the now looking at India not only for the traditional state-run companies declined mainly owing to strengths in contract manufacturing but also as central and state government related a highly attractive location for R&D, mainly in bureaucracy and improper corporate the conduct of clinical trials and other services. governance. The weakening patent system and inefficient state-run systems gave birth to a Statistics range of private sector companies that started manufacturing pharma drugs in large Indian has a total of 24,000 pharmaceutical quantities tailored for the Indian market. companies of which around 250 to 300 fall Over the years, Indian pharma began stealing under the organised category. About 75% of the limelight when the country sold global the top 20 pharma companies are Indian products at a fraction of the price. This owned. The total pharmaceutical revenue for flexibility in production was possible when the 2009-2010 is above $14 billion (over $11 country did not recognise product patents and billion in 2008-2009) with growth of 10-12% was able to use substances in pharma predicted for future years. About 69% of this manufacture at low non-patent costs, thus revenue is from exports. The country mitigating financial risks considerably. India contributes about 2% to the global pharma evolved into a global leader in the generics and market. This puts the country in twelfth place reverse-engineering market. A classic example internationally, behind Korea, Spain and is when Cipla, in 2001, offered an AIDS drug Ireland and before Brazil, Belgium and Mexico. that was being sold by a US company at Among the Asian countries, India?s $12,000 to African countries at a price as low pharmaceuticals industry ranks fourth at 8%, as $300! but has lost market share to China. This state often took India to legal disputes with multinational companies. In 1995, when Currently, the Indian pharmaceutical industry India decided to sign up with the Trade-Related is one of the world's largest and most UK Trade & Investment Sector briefing: Biotechnology and Pharmaceutical opportunities in India developed, ranking 4th in volume terms and attack as costs continue to rise and prices 13th in value terms. The country accounted for come under pressure. Pharmaceutical 8 per cent o production f global production and 2 per cent costs are almost 50 percent lower in India than of world markets in pharmaceuticals. in Western nations, while overall R&D costs The Indian pharmaceutical offshoring industry are about one-eighth and clinical trial expenses is slated to become a US$ 2.5 billion around one-tenth of Western levels. India's opportunity by 2012, thanks to lower R&D long-established manufacturing base also costs and a high-talent pool in India. offers a large, well-educated, English-speaking Top 20 Pharmaceutical companies in India workforce, with 700,000 scientists and engineers graduating every year, including 122,000 chemists and chemical engineers, with 1. Ranbaxy Laboratories Ltd 1,500 PhDs. According to the Organisation of 2. Astra Zeneca Pharmaceutical producers of India (OPPI) the 3. Dr Reddy?s Laboratories industry provides the highest intellectual 4. Cipla Ltd capital per dollar worldwide, says OPPI. 5. Nicholas Piramal India Limited 6. Aurobindo Pharma Limited Shift to R&D 7. GlaxoSmithKline Pharmaceuticals Ltd 8. Lupin Ltd The 2005 patent regime in India does not 9. Sun Pharmaceuticals protect the lax existing patent system that the 10. Cadila Pharmaceuticals Ltd country had. Innovation has taken precedence 11. Orchid Chemicals and Pharmaceuticals over imitation. Large manufacturers have Ltd started re-working on their business models 12. Wockhardt Ltd and have started applying greater emphasis on 13. Nestor Pharma drug research. On a long-term horizon, they do 14. Natco Pharma Limited not want to limit themselves to the production 15. MSD Pharmaceuticals Pvt Ltd of low-cost generics. India?s leading 16. Aventis Pharma Limited pharmaceutical companies are currently 17. Glenmark Pharmaceuticals Ltd spending nearly one-tenth of their revenues on 18. Pfizer Ltd research and development. 19. Torrent Pharmaceuticals Ltd 20. Nycomed Pharma Pvt. Ltd Consolidation Phase Focus areas for the Indian P The Indian pharmaceutical industry has always harmaceuticals industry been in a transitional mode, subject to continuous change. With the global industry Presently the Indian pharma industry focuses taking the consolidation mode, it is not on the following areas: surprising that India too has followed suit. Oncology Indian companies are busy signing mergers and acquisition agreements with global pharma Anti-infectives Diabetes and biotech companies, acquiring international companies, or selling out segments of their Cardio-vascular diseases Ot own units to international buyers. her lifestyle related diseases like asthma and obesity Ranbaxy ? Daiichi Sankyo CNS Immunology and vaccines Daiichi Sankyo, the Japanese drug maker paid Stem cells and Regenerative medicine Drug close to $5 billion to buy controlling stake of discovery India?s largets pharma company ? Ranbaxy in Clinical Trials June 2008. This was a foray for Daiichi in the generic drug market. The India Advantage Sanofi Aventis ? Shantha Biotech Devel oping an innovative new drug, from Sanofi Aventis acquired controlling stake of discovery to worldwide marketing, now Hyderabad based Shantha Biotech for 550 involves million euros in July 2009. investments of around $1 billion,9 and the global industry's profitability is under constant UK Trade & Investment Sector briefing: Biotechnology and Pharmaceutical opportunities in India Abbott Laboratories ? Piramal Healthcare Pharmaceutical Education and Research over the next five years. Abbott Laboratories acquired the domestic ? Biotechnology major, Biocon, will be healthcare business of India?s Piramal investing US$ 20.11 million in the next Healthcare Ltd for $3.70 billion in May 2010. fiscal in enhancing its R&D. Growth drivers for the Indian life science Government Initiatives industry The Government has taken various policy High GDP growth rates, rising population initiatives for the pharmaceutical sector numbers and, as a result,a growing middle class are the drivers of India's pharmaceutical ? Government has offered tax-breaks to market. the pharmaceutical sector. Units are eligible for weighted tax deduction at 150 per cent for the R&D expenditure Population growth incurred. According to estimates from the United nations, the Indian population is set to cross ? Steps have been taken to streamline over 2.4 billion by 2020 and overtake China by procedures covering development of 2025. new drug molecules, clinical research Rising household incomes etc. Strong income growth will broaden the middle ? Government has launched two new class, an important group for foreign drugs schemes?New Millennium Indian manufacturers, as it has considerably higher Technology Leadership Initiative and incomes at its disposal than average Indians. the Drugs and Pharmaceuticals Over a space of ten years, a four-member Research Programme?specially middle-class family has seen spending on targeted at drugs and pharmaceutical pharmaceuticals grow five times over. research. Patent law changes will lead to innovative drugs Opportunities for the UK Since 2005 India?s Pharma sector has no Generics longer been protected by the country?s lax According to a report by IMS Health, the Indian patent legislation. Hence innovation must come generic manufacturers will grow to more than before imitation now. Large manufacturers US$ 70 billion as drugs worth approximately already began to adjust their business models US$ 20 billion in annual sales faced patent some time ago and put greater emphasis on drugs research. On a long-term horizon, they expiry in 2008. With nearly US$ 80 billion do not want to limit themselves to the worth of patent-protected drugs to go off production of low-cost generics. Even though a patent by 2012, Indian generic manufacturers number of companies are well positioned in the are positioning themselves to offer generic generics market, many of them are seeking to versions of these drugs. turn into research-based firms. India?s leading Diagnostics Outsourcing/ Clinical Trials pharmaceutical companies are currently The Indian diagnostics and pathology spending nearly one-tenth of their revenues on research and development. laboratory business is presently around US$ 864 million and is growing at a rate of 20 per cent annually. You can be alerted to India/biotechnology Moreover, the US$ 200-million Indian clinical opportunities on a regular basis by registering research outsourcing market will reach up to on the UKTI website. More on UKTI?s business US$ 600 million by 2010, according to a joint opportunities service study done by KPMG and the Confederation of Indian Industry (CII) in September 2008. Research & Development ? In a bid to boost R&D in the pharmaceutical sector, the government will provide US$ 422.96 million for establishing six National Institutes of UK Trade & Investment Sector briefing: Biotechnology and Pharmaceutical opportunities in India Major events and activities UKTI contacts MHRA Seminar organised by UKTI- India Priya Varadarajan Contact: UKTI Biotechnology and Senior Trade and Investment Adviser Pharmaceutical Team - India Biotechnology & Pharmaceuticals Email: UK Trade and Investment Time: September 2010 British Deputy High Commission Prestige Takt 23, Kasturba Road Cross Inward delegation to UK for the Bangalore 560 001 Biotechnology Business Exchange (BBE) Tel: +91 80 2210 0200 Contact: UKTI Biotechnology and Mob: +91 98451 33896 Pharmaceutical Sector Group Fax: +91 80 2210 0400 Email: Email: Time: December 2010 Web: Find full details of all India Biotechnology events on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Biotechnology and Pharmaceutical opportunities in India Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Indian market are advised to you to meet contacts and promote your undertake as much market research and company in the Indian market planning as possible in the UK. UKTI?s team in India, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in the Indian market. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the Indian market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Biotechnology and Pharmaceutical opportunities in India
Posted: 04 October 2010

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