Abstract: The Indian biotechnology industry crossed the USD 2 billion-mark during 2006-07. Although this accounts for only a little more than 1% share of the global biotech market, the encouraging sign is that the sector is riding on a healthy growth rate of over 35% annually over the last five years. The prognosis is good and consensus among industry leaders and policy makers is that, with proper fiscal and policy initiatives, the sector could easily scale the USD 5 billion by 2010. Today, there are more than 300 biotech companies in India, with the top ten accounting for 50% of the revenue generated.
The global biotechnology industry showed healthy growth in 2006. The capital raised by the world's biotechnology companies grew by a massive 42% to USD 27.9 billion. Global biotech industry public company revenues grew by vigorous double-digit rates and crossed the USD 70 billion thresholds for the first time. Double-digit revenue growth was achieved in Canada (22%), the US (14%) and Europe (14%).
Globalisation is the Mantra
The Indian biotech industry has recorded USD 1.2 billion revenues in exports. Exports accounted for almost 58% of the total revenues generated by the biotech industry, with bio-pharma products currently contributing 73.15% to the exports. This reiterates the fact that companies based in India have concentrated on going global. Further, global alliances and merger and acquisition efforts have taken centre stage.
Another key factor is the increasing potential for providing Contract Research and Manufacturing Services (CRAMS) as many global majors look towards India and China to enhance their competitiveness. This is also spurring many global companies to test the waters in India.