Pharma firms in biotech thrust

Nasscom pegs biotechnology products' consumption in India at Rs 2100 crore by 2010-end, from Rs 400 crore in 1999

Gujarat-based pharmaceutical firms are coming up with various biotechnology plans to exploit the future potential of the segment.

A recent survey by the National Association of Software & Service Companies (Nasscom) has put the consumption of biotechnology products in India at Rs 2,100 crore by the end of 2010 from Rs 400 crore in 1999.

Gujarat, which shares over 50 per cent of the country's total pharmaceutical billing, has another reason to be enthusiastic as the state government has decided to focus on the biotechnology sector with over a dozen new projects including a biotech park on the outskirts of Vadodara city.

A R Kurup, vice-president, Cadila Pharmaceuticals Ltd (CPL), said: "Biotechnology is the future and CPL is coming up with new products in this segment. We have created a separate division called 'Biocare' which will exclusively handle research in biotechnology. We have also set up our own research facilities at the Indian Institute of Science, Bangalore, to concentrate more on biotechnology-related researches."

The Nasscom report, unveiled last week, said that a focus on indigenous R&D efforts, particularly by pharmaceutical and agricultural firms and leading government research institutions in India, will help biotechnology players.

"India can create investment opportunities and fresh investments of $145 million which will turn into a turnover of Rs 20 crore over the next five-seven years. These investments can further be utilised to innovate new products for the global biotechnology market," said the Nasscom report.

"We are looking at new opportunities in the biotechnology segment but there is a need of government support also. We have recently decided to open a R&D centre in Maharashtra with an investment of Rs 40 crore in addition to our existing R&D set-up in Thane. The new centre will address various issues related to biotechnology as our company has decided to focus more on biotech in the next three years," said Kamlesh Udhani, executive director, J B Chemicals and Pharmaceuticals Ltd (JBCPL).

JBCPL, a Bharuch-based pharmaceutical major with its operations in various countries, has now decided to stress on the biotechnology segment. The company's shift in focus from new drugs delivery systems and bulk drugs follows the changes in the global scenario.

These pharmaceutical companies have also find reasons in a recent study on the biotechnology market by Ernst & Young (E&Y) which has shown that India has the potential to become a leading 'hub of biotech projects'.

"Indian companies have the capability to enter segments such as manufacturing biogenerics, contract research services, clinical trials and even make headway in areas such as bio-informatics," said the E&Y study.

"The future is not with curative medicines but with preventive medicines. Zydus Cadila has been focussing on the biotech segment for the last two-three years and we are going to step up our initiatives in this segment in the next five years. The opportunities are not only in the domestic market but also in the global market," said Ganesh Nayek, executive director of Rs 1,100 crore Zydus Cadila Healthcare.

Take the case of the Rs 2,700 crore, Ahmedabad-based Torrent Group which has created a special entity, Torrent Gujarat Biotech Ltd, to handle the biotech mission of the company.

The company has reported a sales turnover of Rs 129.15 crore in the last fiscal against Rs 98.97 crore in fiscal 2001-02. "We are now on the process of commissioning a separate laboratory to upgrade the quality of Inocullum, establishing a pilot fermentation plant and renovate the process lab facilities which is part of the company's expansion plans in the biotechnology segment," said a company official.