New Delhi: The domestic biotechnology sector which closed at $1.5 bn(Rs 6,750 crore) mark in 2005-06 is expected to reach $5bn(Rs 22,500 crore) by 2009-10 with a consecutive CAGR rate of 35.1% which will further bolster growth.
Currently India has more than 300 biotech firms focusing on different aspects of the value chain which is going to double in the next 3-4 years.
In a Paper brought out by Assocham on ‘Biotechnology Future’, biotech may be much smaller in size than the IT, BPO sector but nothing is stopping its racy growth. During FY 05-06, the Indian biotech sector closed in on the $1.5 bn mark and grew by 35% for the second year in a row. The chamber predicts a growth figure of $10bn by 2010 for the biotech sector
And within biotech, bio pharma segment is witnessing the fastest pace of growth. Exports stood at $763 mn and accounted for 52% share of total industry’s revenues while bio pharma accounted for 75% of total exports and 70% of domestic sales.
Agri biotech and bio services are registering the fastest growth with investments in the sector having crossed $360 mn in 2005-06, growing 36% over the previous year.
The Paper also points out that India has more than 300 biotech firms focusing on different aspects of the value chain, however, about half the revenues are concentrated with the top 10 companies. In India vaccines and bio-generics are common areas of interest like Bharat Biotech, Biocon, Dr Reddy’s Lab, Panacea Biotech, Serum Institute, Shanta Biotech, Workhardt and Zydus.
Investment in the sector in India is set to exceed the $700 mn mark. By 2010 there will be a series of joint ventures which will come up for application of biotech not only in knowledge based industries but also agriculture, horticulture and viticulture.
The biotech sector would have the potential to attract funding from international agencies such as World Bank and International Finance Corporation, banks, ventures capitalists and private equity.
Emerging opportunities in Indian biotech industry will advance in key competitive niches as market trends are catering more growth opportunities. The country’s old patent regime fostered a skilled generic industry and many Indian firms are well-positioned for the coming ways of patent expirations.
So far pharma companies have done well but soon biologic drugs are expected to go off patent soon, including blockbusters like Epogen, Novolon and Humulin. Indian biotech companies are gearing up to garner outsourced drug manufacturing contracts and companies like Biocon, DRL, Wockhardt, Panacea Biotech and Shantha Biotechnics are already preparing generic versions of biotech drugs.
The focus on this sector would be primarily in product categories such as-EPO products, Human Insulin, Interferons, G-CSF.