Biotechnology Industry in India – Size & Opportunities

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Written By: Shuchi Nahar | Subscribe to Shuchi’s Blog | Linkedin Profile

India’s Biotechnology Industry

The biotechnology industry in India is amounted to US$ 63 billion in 2019 and is forecast to reach US$ 150 billion by 2025, with a CAGR of 16.4%.

By 2025, the contribution of the Indian biotechnology industry in the global biotechnology market is expected to grow to 19% from 3% in 2017.

Bio-services, which accounted for 15% of the biotechnology industry in India, are becoming a leading destination for clinical trials, contract research, and manufacturing activities in the country.

Segments of Biotechnology Industry in India
Segments of Biotechnology Industry in India
  • In FY20, the sector grew 15% year on year
  • By FY24, the contribution of the Indian biotechnology industry in the global biotechnology market is expected to grow to 19% from 3% in FY18
  • India has over 4237+ biotech startups and is expected to have over 10,000 by 2025.
  • There are 760+ core biotech companies with 200+ Biotech products available in the Indian market
  • There are 55+ Bio-incubators with an approximate Incubation space of 591,349+ sq ft across India supporting 1000 Incubatees
  • There are 9 Biotechnology Parks and 4 Biotechnology Science Clusters across India
  • 3rd largest in the Asia Pacific
  • India is the world’s largest producer of recombinant Hepatitis B vaccine
  • India holds 3% of the global market share in Biotechnology.
  • By 2025, the Indian Biotechnology industry is expected to reach $150 bn from $70 bn in 2020
  • Fast-developing clinical capabilities with the country are helping it become a popular destination for clinical trials, contract research, and manufacturing activities.
  • Increasing government expenditure is likely to augment growth in the biotechnology industry.
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Robust Demand

  • India’s billion-plus population base offers a huge market for biotech products & services.
  •  Increasing economic prosperity and health consciousness will continue to fuel the demand for healthcare services in India.
  •     Better accessibility to healthcare services further accelerates the demand and helps in the growth of biotechnology in India.

Innovative Opportunities

  •   Public funding is being offered for product innovation and research in the biotech sector. The private sector has been aggressively pursuing focused R&D. The public-Private partnership model will improve the market with innovative research and developments.

National Biotechnology Development Strategy-2015-2020

  • Launch of Four Major Missions – Healthcare, Food, and Nutrition, Clean Energy and Education
  • Creating a Technology Development and Translation network across the country with global partnership-5 new clusters, 40 Biotech incubators, 150 TTOs, 20 Bio connect centers.
  •  Strategic and focused investment in building the Human Capital by creating a Life Sciences and Biotechnology Education Council.
  • In the Union Budget, the Department of Biotechnology has seen a hike in the allotment and been given ₹3,502 crores. Last year, it spent ₹2,300 crores and was budgeted ₹2,786 crores.

Ramping up Service Offering

  • Companies are evolving their product mix to reflect the growing repertoire in Biologics, Branded Formulations, and Research Services
  • The state will accord the units coming under the biotech sector with the industry status and aims to establish an internationally competitive business infrastructure and environment for the biotech industry in the state. Biocon has emerged as the leading player in bioproducts.

Enablers for boosting research and innovation and strengthening the entire ecosystem

R&D in Biotechnology Industry in India
R&D in Biotechnology Industry in India

Government Initiatives Taken in Biotechnology Industry in India

Considering immense growth potential, biotechnology has been chosen as one of the champion sectors in the Make in India initiative.

Also Read on FinMedium:  Biocon 2020 Annual report takeaways.

Funds and infrastructure support have been committed under the start-up India initiative. To provide for specialized facilities required for biopharma research and innovation, the government has established incubators and parks for start-ups.

The Department of Biotechnology (DBT) has set up nine biotechnology parks and incubators that offer facilities to scientists and small and medium-sized enterprises (SMEs) for technology incubation, technology demonstration, and pilot studies.

Biotechnology Industry Research Assistance Council (BIRAC) has supported 50 bio-incubators across the country since 2014 to nurture the ecosystem.

It has also set up four regional centers to foster and facilitate bio-entrepreneurship and mentor bio-entrepreneurs for transforming innovative biotech ideas into successful and sustainable ventures.

The Technology Development Board has funded 36 Technology Business Incubators (TBIs) and Science & Technology Entrepreneur Parks (STEPs) under the Seed Support System for start-ups in Incubators.

Biotech Companies poised with external funding to boost the growth

Overall, there are more than 3,500 recombinant proteins and antibodies in pre-clinical and clinical trials and launched treatment.

A growing number of molecules in the pipeline are being developed by small and virtual biotech companies.

Those do not normally have the in-house manufacturing capacity and expertise to bring their candidates to market and therefore have a higher propensity to outsource.

Currently, these emerging biopharma companies constitute approximately 80% of the development pipeline.

Biotech companies are outsourcing more than 70% of their development and manufacturing service needs to external partners.

Among smaller biotechs, this number reaches between 90 and 100%, as secured funding is used for developing therapies in preference to building in-house manufacturing for clinical-stage trials.

Also Read on FinMedium:  Demand, Market Size, Opportunities & New Goverment Policies

Biotech companies with a strong manufacturing partner can receive improved funding, setting up a positive feedback loop. VC funds have also begun to establish their own virtual biotech companies.

Pharma & Biotech Contribution to the Value Chain

The path from preclinical testing to approval usually takes a decade or longer, with no promise of success.

According to the Biotechnology Innovation Organization, approximately one in ten drugs entering clinical testing ultimately make it to the markets. The highest rate of failure occurs in Phase II, only 31% of drugs proceed to Phase III.

Of those that make it to the final Phase III, a little more than half 58% are considered safe and effective enough for an NDA or BLA submission.

From start to finish, only 10% of the drugs that begin Phase-I reach the market.

Despite the low odds, innovative companies continue to bring new drugs to market every year.

The biotechnology industry in India has a promising future with huge opportunities and it seems like an attractive prospect for future private investments.

Further Reading:

Laurus Labs – A Study of Patience

Polymed Medical Devices – A Giant in Medical Equipments

Watch: All About Biotech Industry in India

Sources: Lonza Pharma& BIOTECH | Catalent | Biocon | India’s Biotechnology Department | BIRAC | IBFC | Global Bio India 2021

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Written By: Shuchi Nahar | Subscribe to Shuchi’s Blog | Linkedin Profile

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Shuchi Nahar

Shuchi Nahar

Shuchi is NISM Certified Equity Research Analyst, CFA - Level 1, a student of Law and Finance, and an aspiring CS.
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