With revenue generation to the tune of over Rs 12,600 crore, the bio-pharma sector comprises of vaccines, therapeutics and diagnostics. While, India has emerged as a leading destination for clinical trials, contract research and manufacturing activities owing to the growth in the bio services sector which accounts for revenue generation worth about Rs 3,800 crore.
“India’s biotechnology sector is benefitting from several advantages like its cost effectiveness, research and development (R&D) expertise and personal skills as India is now globally recognized as an ideal location for manufacturing biotech products and for conducting high-level research programmes in the field,” said D.S. Rawat, secretary general of ASSOCHAM while releasing the chamber’s study.
investments, outsourcing activities and exports are key drivers for
growth in India’s biotech sector,” said Mr Rawat. “Biotechnology
is a capital intensive sector with long gestation periods for
returns, hence it is important to provide an appropriate enabling
environment such as incentives, infrastructure and funding models so
as to make the industry sustainable, one such model is through life
sciences park/biotech clusters.”
The global biotechnology industry is undergoing transaction, creating enabling factors that can lead to the growth of Indian biotech industry, noted the Assocham study. “India can play a key role in reducing the cost and time to market for new drug development through outsourcing of various component of the drug development process.”
Since top pharma companies spend a large part of their research in licensing new modules, there is an opportunity for R&D focused Indian biotech companies to enter into such alliances through collaborative development projects, the study added.
Besides, Indian companies with limited financial resources can optimize business models by partnering with larger companies for product development and licensing at an early stage as such deals are more common compared to the middle and late stage deals.
However, dearth of trained manpower is a key challenge particularly in the area critical for success of discovery programmes, noted the Assocham study. “India is strong in informatics and chemistry but still needs personnel in medicinal chemistry, in vitro biology and efficacy related animal models.”
education system produces several chemist and biologists but they are
not employable for industrial research and there is limited
leadership available in these disciplines within industries,” said
Mr Rawat. “Both industry and the government together need to take
concrete steps to bolster the R&D capabilities by providing more
on the job training and aggressively recruit personnel to fill in the
There is also grave need to build a strong proactive law-enforcing system so that the confidence building and global perception on intellectual property (IP) protection are changed favorably to create a positive environment for discovery based collaboration, highlighted the Assocham study.
There is also a need to strengthen and streamline the regulatory framework to meet the global standards, the study added.