Biotech sector may miss 2015 growth target

Despite all the optimism surrounding biotechnology sector, India has missed the $5 billion mark it was estimated to achieve by 2010, according to global research and consulting firm Frost and Sullivan (F&S). The sector, at present, is just $4 billion in size and has set a target of $10 billion in revenue by 2015.

India’s share of $4 billion in the global biotech industry of $180 billion is negligible. The sector grew 33% last fiscal from $3 billion in fiscal 2009. According to a report by Frost and Sullivan, the global industry size is set to reach $433 billion by 2015. In order to achieve the $10 billion mark in the next three years, the industry has to grow over 40% year-on-year.

Despite missing the target, the government and the industry seem to be upbeat. According to MN Vidyashankar, Karnataka IT and BT principal secretary, 40% of Indian biotech revenue comes from Bangalore which has been ranked among the top 12 biotech destinations globally. The F&S report states that India must leverage the growth in biosimilars, biopharmaceuticals and bio-agriculture. Biopharmaceuticals contribute 62% of the Indian biotech industry.

According to the report, there has been a shift towards biosimilars mainly because of expiry of patents in the next few years. Being a semi-regulated market, India will be able to leverage this. Post expiry period, government and insurance will be targeted towards biosimilars rather than branded products.
Also, the low cost of research & development and various government initiatives makes it an attractive destination.

Dipta Chaudhry, senior consultant-pharma & biotech practices, South Asia & Middle East - F&S said Indian generic companies should focus on unregulated and semi-regulated markets for the short term and super biosimlars in the long term.