Karnataka leads $2-b biotech industry

Karnataka leads $2-b biotech industry

Financial Express

Karnataka's 183-strong industry accounts for Rs 2,200 crore of the turnover and Rs 1,000 crore in exports.

Bangalore June 7 The Indian biotechnology industry is well on its way to doubling its turnover to $5 billion by 2010 after witnessing a scorching pace of growth in the last two years to hit the $2-billion mark, according to the annual ABLE-Biospectrum survey for 2006-07.

An Ernst & Young survey ranks India among the top three biotech hubs in the Asia-Pacific region, after Japan and South Korea.

The 340 registered companies across India saw 30 per cent growth in 2005-06 (from $1.45 billion); agricultural biotechnology, driven by Bt cotton, saw 50 per cent growth, said Ms Kiran Mazumdar-Shaw, who heads the Karnataka Vision Group on biotechnology, presenting the survey results.

The biopharma sector led with revenue of $1.4 billion (Rs 6,300 crore).

Investment in the area touched $580 million (Rs 2,200 crore), with Bangalore alone grabbing Rs 1,000 crore.

Biocon, GE, Agilent Technologies, Advinus Therapeutics, Jubilant Organosys and Avesthagen figure among the list of prominent players.

"India's cost and skill base supports affordable drug development. It is an emerging hub for CROs (contract research organisations) and CMOs (contract manufacturing organisations)," Ms Mazumdar-Shaw said.

According to her, Karnataka and Bangalore continue to lead the domestic bio pack.

Karnataka's 183-strong industry accounts for Rs 2,200 crore of the turnover and Rs 1,000 crore in exports.

It houses 55 per cent of the country's biotech companies, with 137 of them based in Bangalore. Its scientific pool has doubled to 16,000.

The Chief Minister, Mr H.D. Kumaraswamy, said that Karnataka has 15 of the top 30 biotech colleges in the country.

"While it is true that the biotech sector in Karnataka is on the fast growth path, we have a long way to go to reach the target turnover of $40 billion by 2015," he added.

As international partnerships with Indian companies are increasing, Ms Mazumdar-Shaw said that there are challenges to tackle.

The industry should focus on discovery of new drug molecules rather than generics and services.

The regulatory infrastructure has to rise to meet needs of GM crops and new biotech drug applications. Venture capitalists should overcome the risk-averse mindset and support innovation.