'Low cost a key to biotech success'

India could corner a big share of the global biotech industry because of its cost advantage in developing new products and conducting research, according to ICRA's Biopharmaceutical Report.

The global biotechnology market was estimated to be over $50 billion. The US and Europe account for over 90 per cent of the market. A lot of bioinformatics and genome research work had already reached India, and this potential was set to boom, the report added.

The study pointed out that the Indian biotech industry saw a growth of 36.5 per cent last year. Out of 82 blockbuster drugs in 2004 (those with sales over $1 billion), 11 had their roots in biotech. It also predicted intensified mergers & acquisitions activity.

The biopharmaceutical sector had a lot of latent potential waiting to be tapped, according to the report.

Despite an enabling environment and increasing number of alliances, complications and significant overlap in regulations delay product launches of companies, thereby creating roadblocks, it added.

Biotech companies worldwide had acquired businesses that add newer products or markets to their portfolios, or expand their R&D pipelines. This would be the next trend in Indian biotech industry, too, it said.

The study said supportive infrastructure policies, and professional regulatory system had helped the sector grow. But, there were many bottlenecks like inadequate funding, intellectual property rights snags and legal issues like patentability of genetic information.