The Indian modern biotech (genetic engineering enabled) opportunity, which would be about $100 million currently, is expected to multiply at least five fold (about $500 million) over the next decade according to studies done by Business Consulting Group, an Indian management consulting firm.
The domestic industry, which is currently vaccine oriented, will become broad based in future with a more pronounced presence in existing as well as emerging modern biotech segments.
"The emerging modern biotech segments include bio-pharmaceuticals, cell and tissue-based therapeutics, molecular diagnostics, metabolic pathway engineering-based chemicals and polymers, bio-energy, genetically improved seed varieties, bio-informatics and genomics," Business Consulting Group said in a release.
Overseas companies and institutions have pegged the current global modern biotech opportunity in products and services at $30 billion which would exceed $150 billion by the end of the next decade. Medical biotech products account for almost 60 per cent of the current market.
Western countries account for over 90 per cent of consumer share as many of the modern biotech products are very expensive. For instance, annual cost of therapy using bio-pharmaceuticals made using medical bio-technologies could be as high as $12,000 in the US.
An entry into biotech would call for a planned approach given the entry barriers and risk profile of the industry as seen in the high cost of research and development with per capita spends of up to $100,000 in the US, poor success rates as only one drug in 10,000 makes it to the market and only one in 100,000 makes it from screening and regulatory and consumer adoption issues.
The current participants in the Indian industry include Shantha and Bharat, Dr Reddy's, Wockhardt, Mahyco, Biocon, DSQ Biotech, Monsanto, Aventis, etc. Business Consulting Group feels that the strategy adopted by many Indian players could end up restricting them to non-Western markets.
Opportunities in the biotech sector include product market in bio-pharmaceuticals, diagnostics, new seed varieties and enzymes. Other opportunities are associated with bio-informatics and genomics, contract research, contract development, contract manufacturing, clinical trial management, retailing and healthcare. However, the consultancy group cautions Indian companies against generic approaches to a biotech business given its many segments, their different business characteristics and associated risk levels.
In future, biotech industry is likely to consist of diversified conglomerates - both Indian and multinationals, international Biotech start-ups, international chemicals companies and process houses, non-resident Indians (professors, entrepreneurs, professionals), former Indian employees of established biotech companies and university professors cum entrepreneurs, according to the study.
"Many Indian participants in these sectors will be uncompetitive due to the product and process innovations which are unfolding rapidly in the western world. If Indian companies do not plan at this stage, they are likely to find entry into these areas at a later stage to be exorbitantly expensive," the study says.
