BIOTECHNOLOGY AUGUST 2015 For updated information, please visit www.ibef.org 1 BIOTECHNOLOGY Executive Summary………….…………..…..3 Advantage India……………….………..…….4 Market Overview and Trends….....................6 Strategies Adopted……………….………….13 Growth Drivers…......................................…15 Opportunities………………………………..28 Success Stories: Major Players…….……..33 Useful Information.......................................37 AUGUST 2015 For updated information, please visit www.ibef.org 2 BIOTECHNOLOGY EXECUTIVE SUMMARY CAGR: 30.46% 100 The biotech industry is By FY25F, India’s biotech expected to experience 7 industry is estimated to significant growth amid increase to USD100 billion from FY15E FY25F favourable business conditions USD7 billion in FY15 Biotech market (USD billion) 3.7 Percentage rise in In its 12th Five-Year Plan, the investments 236.36% government aims to spend Increasing government USD3.7 billion on expenditure is likely to augment 1.1 biotechnology compared to growth USD1.1 billion in the 11th Five- Eleventh Five Year Plan Twelfth Five Year Plan Year Plan CAGR: 5.81% India’s pharmaceuticals market 45 Growing pharmaceuticals 35.9 is expected to grow to USD35.9 market is estimated to aid billion by 2016F and USD45 growth of the biotech industry billion in 2020 from USD18 2016F 2020F billion in 2012 Pharma Market in India (USD Billion) Source: Government of India, Ministry of Health, Planning Commission, ASSOCHAM, Department of Biotechnology Ministry of Science & Technology AUGUST 2015 Government of India, Make In India, TechSci Research 3 Note: F - Forecast For updated information, please visit www.ibef.org BIOTECHNOLOGY ADVANTAGE INDIA AUGUST 2015 BIOTECHNOLOGY ADVANTAGE INDIA FY13 GrowingRobust demand Innovation opportunities FY17E • India’s billion-plus population base • Public funding is being offered for Market offers a huge market for biotech product innovation and research in Market Value: products and services the biotech sector Value: USD4.3 • Increasing economic prosperity • The private sector has been USD11.6 billion and health consciousness would aggressively pursuing focused R&D billion continue to fuel demand for • Public-Private partnerships will healthcare services improve the market with innovative • Better accessibility to healthcare research and development services further accelerates the demand Advantage India Increasing investments Policy support • FDI investment up to 100 per cent • The sector has experienced is permitted via the automatic significant growth in government route spending since 1985 • A low cost and skilled labour force • Budgetary allocations to the biotech is attracting outsourced research sector have increased activity • Biotechnology Industry Research • Launch of Biotechnology Industry Assistance Council has been set up Partnership Programme (BIPP) is • National Rural Healthcare Mission boosting industry participation has been launched to boost healthcare spending Source: Government of India, Ministry of Health, Planning Commission, ABLE, TechSci Research Note: E - Estimate AUGUST 2015 For updated information, please visit www.ibef.org 5 BIOTECHNOLOGY MARKET OVERVIEW & TRENDS AUGUST 2015 BIOTECHNOLOGY MAJOR MILESTONES IN INDIAN BIOTECHNOLOGY INDUSTRY 1978–90 1990–99 Post 2000 • 1978: India’s first biotech firm, • 1991: National Centre for Biological • 2007: National Biotechnology Biocon, was setup Sciences pursued R&D in molecular Development Strategy launched biology • 1981: Centre for Cellular and • 2009: Launch of Biotechnology Molecular Biology setup in • 1994: Syngene, India’s first Contract Industry Partnership Programme Hyderabad Research Organisation (CRO), started R&D services • 2009: National Biotechnology • 1984: Institute for Microbial Regulatory Authority Bill 2008 Technology, Chandigarh was setup • 1997: Centre for Biological introduced in the parliament Technology (CBT) was established • 1986: Department of Biotechnology to focus on bioinformatics and • 2011: Government approved setting (DBT) was formed genomics up the Biotechnology Industry Research Assistance Council • 1987: National Institute of • 1998: Monsanto Research (BIRAC) Immunology was setup by DBT established an R&D centre for plant th genomics • 2012: India ranked 12 in the world • 1989: Bangalore Genei commenced in biotech and 3rd largest in Asia- operations • 1998: DBT approved Mahyco- Pacific, after Japan and Korea Monsanto to grow Bt cotton • 2013: India became the biggest producer of Hepatitis B vaccine recombinant Source: EXIM bank of India research, makeinindia, CII, TechSci Research Note: R&D - Research and Development AUGUST 2015 For updated information, please visit www.ibef.org 7 BIOTECHNOLOGY KEY SEGMENTS IN THE INDIAN BIOTECHNOLOGY INDUSTRY Biotechnology Bio-pharma Bio-services Bio-agri Bio-industrial Bio-informatics • Bio-pharmaceutical • Bio-services • Bio-agriculture is • Bio-industrial • Bio-informatics deals products are mainly include segmented into predominantly with the creation and therapeutic or clinical research hybrid seeds, comprises enzyme maintenance of preventative and CRO along transgenic manufacturing and extensive electronic medicines that are with custom crops, bio- marketing databases on various derived from manufacturing pesticides and companies biological systems; it materials naturally bio-fertilisers is currently the present in living smallest part of the organisms, using domestic recombinant DNA biotechnology (rDNA) technology industry Source: ABLE - Biospectrum Industry Survey, June 2013; TechSci Research AUGUST 2015 For updated information, please visit www.ibef.org 8 BIOTECHNOLOGY MAJOR PRODUCTS/SERVICES OF THE INDIAN BIOTECHNOLOGY INDUSTRY Biotechnology Bio-pharma Bio-services Bio-agri Bio-industrial Bio-informatics Contract Industrial Database Vaccines Research Hybrid seeds enzymes services Organisation Integrated Custom Diagnostic Bio-fertilisers research app Manufacturing software Biotech software Therapeutic Bio-pesticides services Source: ABLE - Biospectrum Industry Survey, June 2013; TechSci Research AUGUST 2015 For updated information, please visit www.ibef.org 9 BIOTECHNOLOGY ROBUST GROWTH IN BIOTECH INDUSTRY Maintaining the momentum of the previous years, the Indian Market size (USD billion) biotech industry grew 16.28 per cent in FY14; the total industry size was USD5 billion at the end of the financial 7.0 year and is estimated to be USD7 billion by 2015. CAGR: 20.33% 5.0 Fast-paced growth is likely to continue; the industry is 4.3 4.3 expected to increased in size to USD11.6 billion by 2017, 3.8 driven by a range of factors such as growing demand, 3.0 intensive R&D activities and strong government initiatives 2.6 2.6 1.9 1.5 Fast-developing clinical capabilities with the country 1.1 becoming a popular destination for clinical trials, contract research and manufacturing activities FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15E Source: ABLE - Biospectrum Industry Survey, June 2013, Makeinindia, TechSci Research Global Industry Analysts Report (GIA) Notes: CAGR - Compound Annual Growth Rate AUGUST 2015 For updated information, please visit www.ibef.org 10 BIOTECHNOLOGY BIO-PHARMA ACCOUNTS FOR MAJORITY MARKET SHARE AND WITNESSES FASTEST GROWTH IN FY14 The bio-pharmaceutical segment accounted for the largest Market break-up by revenues (FY14) share of the biotech industry, with 62.0 per cent of total 1% revenues in FY14. Revenue from bio-pharma exports Bio-pharma reached USD2.2 billion in 2013, accounting for 51 per cent 4% of total revenues of the biotech industry 15% Bio-services In FY14, the bio-services and bio-agri segments accounted for 18.0 per cent and 15.0 per cent of the biotech industry, Bio-agri respectively 18% 62% Bio-industry The bio-pharmaceutical segment grew at the fastest rate (17.7 per cent in FY13), followed by bio-services (15.5 per cent) and bio-industrial (10.9 per cent) Bio-informatics Source: ASSOCHAM, Makeinindia, TechSci Research AUGUST 2015 For updated information, please visit www.ibef.org 11 BIOTECHNOLOGY NOTABLE TRENDS IN THE INDIAN BIOTECH SECTOR Remarkable global • India is among the top 12 biotech destinations in the world • India ranks second in Asia, after China positioning • India is the world’s largest producer of recombinant Hepatitis B vaccine Pharma companies • Ranbaxy, Cadila Healthcare, Lupin, Wockhardt and Dr Reddy’s are among the major focusing on biotech Indian pharmaceutical companies operating in the bio-pharma segment Global companies • Lonza, a global leader in production and support of pharmaceutical and biotech products, is planning to set up a manufacturing base in India at an investment of USD150 million in setting up base Hyderabad. The investment outlay has been planned over two phases Biosimilars and • Growth in the sector is anticipated to come from the country's strong position in biosimilars molecular diagnostic and molecular diagnostics as well as personalised medicine (where export and domestic remain strongholds trends look promising) • In 2013, India had overtaken Canada to emerge as the fourth largest country to grow Growth in Genetically biotech or Genetically Modified (GM) crops. The global acreages under GM crops Modified crops increased to 175.2 million hectares in 2013, about five million hectares more than the previous year Source: Ministry of External Affairs, TechSci Research, Indian Law Offices AUGUST 2015 For updated information, please visit www.ibef.org 12 BIOTECHNOLOGY STRATEGIES ADOPTED AUGUST 2015 BIOTECHNOLOGY STRATEGIES ADOPTED • Indian