Outlook for Equities in context of Emerging Technologies

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Outlook for Equities in context of Emerging
Technologies

• Chetan J. Parikh
• Jeetay Investments Private Limited

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Global economy accelerating creative destruction
Source Economist
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Nanotechnology
Nanotechnology involves the use of man-made
materials so small, they are measured on the
scale of a nanometer. The word Nano is derived
from the Greek word for dwarf, which means a
billionth. A nanometer is a billionth of a
metre, that is, about 1/80,000 of the diameter of
a hydrogen atom. This new science concerns the
properties and behavior of aggregates of atoms
and molecules, at a scale not yet large enough to
be considered macroscopic but far beyond what can
be called microscopic. It is the science of the
mesoscale and it encompasses many fields.
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Nanotechnology
Nanotechnology is the craft of constructing
things that span a few scores of atoms strung
together. Move automated assembly down to such
scales and the implications for manufacturing are
pretty clear Whole sectors of production become
redundant. It will start with semiconductors in
the 2010s, then spread to other small products.
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Nanotechnology
At the atomic level, we have new kinds of forces
and new kinds of possibilities, new kinds of
effects. The problems of manufacture and
reproduction of materials will be quite
different.   - Richard Feynman
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A Few 10-9 Milestones
3.5 billion years ago the first living cells
emerge. Cells house nanoscale biomachines that
perform such tasks as manipulating genetic
material and supplying energy.   400 B.C.
Democritus coins the word "atom," which means
"not cleavable" in ancient Greek.   1905 Albert
Einstein publishes a paper that estimates the
diameter of a sugar molecule as about one
nanometer.
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A Few 10-9 Milestones
1931 Max Knoll and Ernst Ruska develop the
electron microscope, which enables subnanometer
imaging.   1959 Richard Feynman gives his famed
talk "There's Plenty of Room at the Bottom," on
the prospects for miniaturization.   1968 Alfred
Y. Cho and John Arthur of Bell Laboratories and
their colleagues invent molecular-beam epitaxy, a
technique that can deposit single atomic layers
on a surface.
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A Few 10-9 Milestones
1974 Norio Taniguchi conceives the word
"nanotechnology" to signify machining with
tolerances of less than a micron.   1981 Gerd
Binnig and Heinrich Rohrer create the scanning
tunneling microscope, which can image individual
atoms.   1985 Robert F. Curl, Jr., Harold W.
Kroto and Richard E. Smalley discover
buckminsterfullerenes, also known as buckyballs,
which measure about a nanometer in diameter.
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A Few 10-9 Milestones
1986 K. Eric Drexler publishes Engines of
Creation, a futuristic book that popularizes
nanotechnology.   1989 Donald M. Eigler of IBM
writes the letters of his company's name using
individual xenon atoms.   1991 Sumio Iijima of
NEC in Tsukuba, Japan, discovers carbon
nanotubes.
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A Few 10-9 Milestones
1993 Warren Robinett of the University of North
Carolina and R. Stanley Williams of the
University of California at Los Angeles devise a
virtual-reality system connected to a scanning
tunneling microscope that lets the user see and
touch atoms.   1998 Cees Dekker's group at the
Delft University of Technology in the Netherlands
creates a transistor from a carbon
nanotube.   1999 James M. Tour, now at Rice
University, and MarkA. Reed of Yale University
demonstrate that single molecules can act as
molecular switches.
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A Few 10-9 Milestones
2000 The Clinton administration announces the
National Nanotechnology Initiative, which
provides a big boost in funding and gives the
field greater visibility.   2000 Eigler and other
researchers devise a quantum mirage. Placing a
magnetic atom at one focus of an elliptical ring
of atoms creates a mirage of the same atom at
another focus, a possible means of transmitting
information without wires.
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Nano for Sale
Not all nanotechnology lies 20 years hence, as
the following sampling of already commercialized
applications indicates.
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Nano for Sale
APPLICATION CATALYSTS COMPANY
EXXONMOBIL DESCRIPTION Zeolites, minerals with
pore sizes of less than one nanometer, serve as
more efficient catalysts to break down, or crack,
large hydrocarbon molecules to form
gasoline.   APPLICATION DATA STORAGE COMPANY
IBM DESCRIPTION In the past few years, disk
drives have added nanoscale layering-which
exploits the giant magneto-resistive effect-to
attain highly dense data storage.   APPLICATION
DRUG DELIVERY COMPANY GILEAD SCIENCES DESCRIPTION
Lipid spheres, called liposomes, which measure
about 100 nanometers in diameter, encase an
anticancer drug to treat the AIDS-related
Kaposi's sarcoma.
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Nano for Sale
APPLICATION MANUFACTURE OF RAW
MATERIALS COMPANY CARBON NANOTECHNOLOGIES DESCRIP
TION Co-founded by buckyball discoverer Richard
E. Smalley, the company has made carbon nanotubes
more affordable by exploiting a new manufacturing
process.   APPLICATION MATERIALS
ENHANCEMENT COMPANY NANOPHASE TECHNOLOGIES DESCRI
PTION Nanocrystalline particles are incorporated
into other materials to produce tougher ceramics,
transparent sunblocks to block infrared and
ultraviolet radiation, and catalysts for
environmental uses, among other applications.
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Nanophysics

•  
•  Smaller than macroscopic objects but larger
  than molecules, nanotechnological devices exist
  in a unique realm-the mesoscale-where the
  properties of matter are governed by a complex
  and rich combination of classical physics and
  quantum mechanics.
•  
• Engineers will not be able to make reliable
  or optimal nanodevices until they comprehend the
  physical principles that prevail at the
  mesoscale.

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Nanophysics

• Scientists are discovering mesoscale laws by
  fashioning unusual, complex systems of atoms and
  measuring their intriguing behavior.
• Once we understand the science underlying
  nanotechnology, we can fully realize the
  prescient vision of Richard Feynman that nature
  has left plenty of room in the nanoworld to
  create practical devices that can help humankind.

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Nanofabrication

• The development of nanotechnology will depend
  on the ability of researchers to efficiently
  manufacture structures smaller than 100
  nanometers (100 billionths of a meter) across.
• Photolithography, the technology now used to
  fabricate circuits on microchips, can be modified
  to produce nanometer-scale structures, but the
  modifications would be technically difficult and
  hugely expensive.

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Nanofabrication

• Nanofabrication methods can be divided into two
  categories top-down methods, which carve out or
  add aggregates of molecules to a surface, and
  bottom-up methods, which assemble atoms or
  molecules into nanostructures.
• Two examples of promising top-down methods are
  soft lithography and dip-pen lithography.
  Researchers are using bottom-up methods to
  produce quantum dots that can serve as biological
  dyes.

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Microelectronics will change to nanoelectronics
The electronics industry is deeply interested in
developing new methods for nanofabrication so
that it can continue its longterm trend of
building ever smaller, faster and less expensive
devices. It would be a natural evolution of
microelectronics to become nanoelectronics. But
because conventional photolithography becomes
more difficult as the dimensions of the
structures become smaller, manufacturers are
exploring alternative technologies for making
future nanochips.
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Nanofabrication Comparing the Methods
Researchers are developing an array of techniques
for building structures smaller than 100
nanometers. Here is a summary of the advantages
and disadvantages of four methods.
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Photolithography
Advantages The electronics industry is already
familiar with this technology because it is
currently used to fabricate microchips.
Manufacturers can modify the technique to produce
nanometer-scale structures by employing electron
beams, x-rays or extreme ultraviolet
light.   Disadvantages The necessary
modifications will be expensive and technically
difficult. Using electron beams to fashion
structures is costly and slow. X-rays and extreme
ultraviolet light can damage the equipment used
in the process.
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Scanning Probe Methods
Advantages The scanning tunneling microscope and
the atomic force microscope can be used to move
individual nanoparticles and arrange them in
patterns. The instruments can build rings and
wires that are only one atom wide.   Disadvantages
The methods are too slow for mass production.
Applications of the microscopes will probably be
limited to the fabrication of specialized
devices.
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Soft Lithography
Advantages This method allows researchers to
inexpensively reproduce patterns created by
electron-beam lithography or other related
techniques. Soft lithography requires no special
equipment and can be carried out by hand in an
ordinary laboratory.   Disadvantages The
technique is not ideal for manufacturing the
multilayered structures of electronic devices.
Researchers are trying to overcome this drawback,
but it remains to be seen whether these efforts
will be successful.
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Bottom-Up Methods
Advantages By setting up carefully controlled
chemical reactions, researchers can cheaply and
easily assemble atoms and molecules into the
smallest nanostructures, with dimensions between
two and 10 nanometers.   Disadvantages Because
these methods cannot produce designed,
interconnected patterns, they are not well suited
for building electronic devices such as
microchips.
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Some prominent bottom-up methods
Two of the most prominent bottom-up methods are
those used to make nanotubes and quantum dots.
Scientists have made long, cylindrical tubes of
carbon by a catalytic growth process that employs
a nanometer-scale drop of molten metal (usually
iron) as a catalyst. The most active area of
research in quantum dots originated in the
laboratory of Louis E. Brus (then at Bell
Laboratories) and has been developed by A. Paul
Alivisatos of the University of California at
Berkeley, Moungi G. Bawendi of the Massachusetts
Institute of Technology, and others. Quantum dots
are crystals containing only a few hundred atoms.
Because the electrons in a quantum dot are
confined to widely separated energy levels, the
dot emits only one wavelength of light when it is
excited. This property makes the quantum dot
useful as a biological marker.
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Nanomedicine
The potential medical advances that will be made
possible by successful nanostructures span a wide
range of practical applications. Drugs could be
delivered with pinpoint accuracy. Tagged
molecules could bind with and reveal diseased
organs or blooming cancers before they become
runaway problems. Biological samples could be
quickly screened with nano-sized mechanical
devices that bind to certain genetic sequences.
The development and refining of these and other
devices promise to change the very nature of
medical intervention.
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Nano-bio-technology

• Nanometer-scale objects made of inorganic
  materials can serve in biomedical research,
  disease diagnosis and even therapy.
• Biological tests measuring the presence or
  activity of selected substances become quicker,
  more sensitive and more flexible when certain
  nanoscale particles are put to work as tags, or
  labels.

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Nano-bio-technology

• Nanoparticles could be used to deliver drugs
  just where they are needed, avoiding the harmful
  side effects that so often result from potent
  medicines.
• Artificial nanoscale building blocks may one
  day be used to help repair such tissues as skin,
  cartilage and bone-and they may even help
  patients to ,regenerate organs.

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Global Market Size of nano-bio-technology
The, overall market impact of nano-bio-technology
applications is projected to reach 300 billion
within the next 12 years.
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Some promising application in nano-bio-technology
One of the most promising early applications of
nanotechnology to the practice of medicine is
targeted drug delivery using nanocapsules. In
cancer therapy, targeting and localized delivery
are the key challenges. The ability to
selectively attack the cancer cells and save
normal tissue from drug toxicity is crucial.
However, because many anti-cancer drugs are
designed to simply kill cancer cells, often in a
semi-specific fashion, they result in severe side
effects.
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Some promising application in nano-bio-technology
Drug-filled nanocapsules can be covered with
antibodies or cell-surface receptors that bind to
cancer or other cells and release the drug upon
contact with these cells. Nanocapsules also
provide one of the few ways to get drugs across
the blood-brain barrier for treatment of diseases
affecting the eyes, brain, and other portions of
the central nervous system.
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Some promising application in nano-bio-technology
One of the other modes of cancer treatment has
been using nanoscale iron oxide. It is observed
that blood circulation is irregular in the cancer
cells. Since it is blood that circulates both
oxygen and heat thats generated inside the cell,
on insertion of nanoscale iron oxide within the
body, it reaches all parts of the body including
the cancer cells. The heat that is generated due
to the magnetic field carries with it the
potential to kill the carcinogenic cells. Thus
detrimental radiation therapy can be avoided.
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Nano-bio-technology in India
Dendrimer therapy The California Cancer
Institute has developed a new technique that can
cure cancer at the early stages using dendrimers.
These are a new class of three-dimensional,
man-made molecules produced by an unusual
synthetic route, which incorporate repetitive
branching sequences to create a unique novel
architecture. Dr N Jayaraman of the Indian
Institute of Science has recently synthesized a
new class of three-dimensional dendrimer
molecules. It incorporates various guest
molecules within its repetitive branching
sequences to create a unique host system.
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Nano-bio-technology in India
Dendrimer therapy These are treelike
macro-molecules, with branching tendrils reaching
out from a central core. The first
dendrimer-based pharmaceuticals are poised to
enter the market as early as 2008.
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Nano-bio-technology in India (Cont.)
The Indian Institute of Science is attempting to
develop various nanoscopic systems. The goal is
to investigate both synthetic and natural
materials, engineered at the nanoscale, for new
properties that can be exploited in
nanobiotechnological applications. A major thrust
of the program is the design and synthesis of
novel biocompatible and biodegradable materials.
These materials are then employed for achieving
complex nanoparticles with selected genetic
materials. These nanoparticles are then used to
facilitate a systematic study of factors that
control nucleic acid delivery across cellular
barriers. These will provide materials for
diverse applications such as gene or protein
delivery, probing biological systems, altering
biological functions, gene slicing and
incorporating bioactive materials into cellular
devices.
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Nanotechnology in orthopaedics
Grafts of natural bone can carry disease or
trigger immune rejection by the host. Sterilising
the bone to reduce the chances of disease can
weaken the bone. Artificial bone cement without
nanotechnology can work for small applications,
but tends not to have sufficient strength for
load bearing bone replacement. However,
artificial bone paste made with nanoceramic
particles shows considerable promise for bone
repair and replacement, even in load-bearing
applications.
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Nanotechnology in neurology
Nanotechnology can also be used to partially
repair neurological damage. For example, it can
improve the accuracy of cochlear implants that
turn sound into electrical impulses and create
light-activated implants in the retina to
partially restore lost vision. In addition,
biomemetic scaffolds can help damaged nerves to
regrow and reconnect.
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Indian companies looking at nano-bio-technology

• Marico looking at nanotechnology applications
  in the nutraceuticals they manufacture
• 2. LOreal Nanomaterials are used in
  surfactants, emulsifiers and sunscreen lotions of
  LOreals cosmetic products.

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Indian companies looking at nano-bio-technology
However no successful nano-bio-technology product
in the Indian market as of now.
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Motors from molecules
To make a molecular motor, it isn't enough just
to make a miniature version of an ordinary motor.
Researchers have had to rethink the very premises
on which a motor operates.
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Motors from molecules

• In ordinary motors, an energy input causes
  motion. In molecular motors, an energy input
  restrains motion. By selectively stopping the
  motions it doesn't want and letting through the
  ones it does the motor turns momentum from
  random environmental influences into organized
  motion.

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Nanobot Construction Crews
Molecular manufacturing - the heady notion of
assembling almost anything, from computers to
caviar, from individual molecules - would change
the world, if someone could just find a way to
make it work. Imagine nanoassemblers busy work
gangs of "pick and place" robotic manipulator
arms, each one tens of nanometers in size.
Controlled from on high by a powerful computer,
these simple devices would arrange blocks of
molecules to make copies of themselves-and these
machines would, in turn, build still other
nanomachines, which, in turn, would create
others, and so on in an exponential expansion.
These nanobot construction crews could then be
directed to accomplish astonishing tasks such as
curing diseases from inside the body and
fabricating intricately engineered materials from
basic bulk feedstocks at extraordinarily low
cost.  
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Nanobot Construction Crews
Comment Not much funding currently available.
The technology is 10-20 years away from
commercial reality.
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Nanoelectronics

• Silicon chips, circuit boards, soldering irons
  these are the icons of modern electronics. But
  the electronics of the future may look more like
  a chemistry set. Conventional techniques can
  shrink circuits only so far engineers will soon
  need to shift to a whole new way of organizing
  and assembling electronics. One day your computer
  may be built in a beaker.
• Researchers have created nanometer-scale
  electronic components-transistors, diodes,
  relays, logic gates from organic molecules,
  carbon nanotubes and semiconductor nanowires. Now
  the challenge is to wire these tiny components
  together.

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Nanoelectronics

• Unlike conventional circuit design, which
  proceeds from blueprint to photographic pattern
  to chip, nanocircuit design will probably begin
  with the chip-a haphazard jumble of as many as
  1024 components and wires, not all of which will
  even work-and gradually sculpt it into a useful
  device.

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DNA Computers
Why limit ourselves to electronics? Most efforts
to shrink computers assume that these machines
will continue to operate much as they do today,
using electrons to carry information and
transistors to process it. Yet a nanoscale
computer could operate by completely different
means. One of the most exciting possibilities is
to exploit the carrier of genetic information in
living organisms, DNA.
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DNA Computers
The molecule of life can store vast quantities of
data in its sequence of four bases (adenine,
thymine, guanine and cytosine), and natural
enzymes can manipulate this information in a
highly parallel manner. The power of this
approach was first brought to light by computer
scientist Leonard M. Adleman in 1994. He showed
that a DNAbased computer could solve a type of
problem that is particularly difficult for
ordinary computers - the Hamiltonian path
problem, which is related to the infamous
travelingsalesman problem.
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DNA Computers
Adleman started by creating a chemical solution
of DNA. The individual DNA molecules encoded
every possible pathway between two points. By
going through a series of separation and
amplification steps, Adleman weeded out the wrong
paths - those, for example, that contained points
they were not supposed to contain - until he had
isolated the right one. More recently, Lloyd M.
Smith's group at the University of
Wisconsin-Madison implemented a similar algorithm
using gene chips, which may lend themselves
better to practical computing.
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DNA Computers
Despite the advantages of DNA computing for
otherwise intractable problems, many challenges
remain, including the high incidence of errors
caused by base-pair mismatches and the huge
number of DNA nanoelements needed for even a
modest computation. DNA computing may ultimately
merge with other types of nanoelectronics, taking
advantage of the integration and sensing made
possible by nanowires and nanotubes.
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Carbon Nanotubes
Nearly 13 years ago Sumio Iijima, sitting at an
electron microscope at the NEC Fundamental
Research Laboratory in Tsukuba, Japan, first
noticed odd nanoscopic threads lying in a smear
of soot. Made of pure carbon, as regular and
symmetric as crystals, these exquisitely thin,
impressively long macromolecules soon became
known as nanotubes.  
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Carbon Nanotubes
Many of the extraordinary properties attributed
to nanotubes-among them, superlative resilience,
tensile strength and thermal stability-have fed
fantastic predictions of microscopic robots,
dent-resistant car bodies and earthquake-resistant
buildings. The first products to use nanotubes,
however, exploit none of these. Instead the
earliest applications are electrical. Some
General Motors cars already include plastic parts
to which nanotubes were added such plastic can
be electrified during painting so that the paint
will stick more readily. And two nanotube-based
lighting and display products are well on their
way to market.
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Carbon Nanotubes
In the long term, perhaps the most valuable
applications will take further advantage of
nanotubes' unique electronic properties. Carbon
nanotubes can in principle play the same role as
silicon does in electronic circuits, but at a
molecular scale where silicon and other standard
semiconductors cease to work. Although the
electronics industry is already pushing the
critical dimensions of transistors in commercial
chips below 200 nanometers (billionths of a
meter)-about 400 atoms wide - engineers face
large obstacles in continuing this
miniaturization. Within this decade, the
materials and processes on which the computer
revolution has been built will begin to hit
fundamental physical limits. Still, there are
huge economic incentives to shrink devices
further, because the speed, density and
efficiency of microelectronic devices all rise
rapidly as the minimum feature size decreases.
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Other Uses for Nanotubes Beyond Electronics
The seven potential uses for nanotubes listed
below are given "feasibility ratings." A rating
of 4 means "ready for market" a rating of 2
means "demonstrated" and a rating of 0 means the
concept is now just "science fiction."
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Chemical and Genetic Probes
A nanotube-tipped atomic force microscope can
trace a strand of DNA and identify chemical
markers that reveal which of several possible
variants of a gene is present in the strand.
Obstacles This is the only method yet invented
for imaging the chemistry of a surface, but it is
not yet used widely. So far it has been used only
on relatively short pieces of DNA. Feasibility 3
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Mechanical Memory
A screen of nanotubes laid on support blocks has
been tested as a binary memory device, with
voltage forcing some tubes to contact (the "on"
state) and other to separate (the "off" state).
Obstacles The switching speed of the device
was not measured, but the speed limit for a
mechanical memory is probably around one
megahertz, which is much slower than conventional
memory chips. Feasibility 2
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Nanotweezers
Two nanotubes, attached to electrodes on a glass
rod, can be opened and closed by changing
voltage. Such tweezers have been used to pick up
and move objects that are 500 nanometers in size.
Obstacles Although the tweezers can pick up
objects that are large compared with their width,
nanotubes are so sticky that most objects can't
be released. And there are simpler ways to move
such tiny objects. Feasibility 2
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Supersensitive Sensors
Semiconducting nanotubes change their electrical
resistance dramatically when exposed to alkalls,
halogens, and other gases at room temperature,
raising hopes for better chemical sensors.
Obstacles Nanotubes are exquisitely sensitive
to so many things (including oxygen and water)
that they may not be able to distinguish one
chemical or gas from another. Feasibility 3
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Hydrogen and Ion Storage
Nanotubes might store hydrogen in their hollow
centers and release it gradually in efficient and
inexpensive fuel cells. They can also hold
lithium ions, which could lead to longer-lived
batteries.   Obstacles So far the best reports
indicate a 6.5 percent hydrogen uptake, which is
not quite dense enough to make fuel cells
economical. The work with lithium ions is still
preliminary. Feasibility 1
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Sharper Scanning Microscope
Attached to the tip of a scanning probe
microscope, nanotubes can boost the instrument's
lateral resolution by a factor of 10 or more,
allowing clear views of proteins and other large
molecules. Obstacles Although commercially
available, each tip is still made individually.
The nanotube tips don't improve vertical
resolution, but they do allow imaging deep pits
in nano-structures that were previously
hidden. Feasibility 4
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Superstrong Materials
Embedded into a composite, nanotubes have
enormous resilience and tensile strength and
could be used to make cars that bounce in a wreck
or buildings that sway rather than crack in an
earthquake.   Obstacles Nanotubes can still
cost 10 to 1,000 times more than the carbon
fibers currently used in composites. And
nanotubes are so smooth that they slip out of the
matrix, allowing it to fracture easily.
Feasibility 0
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Bio-generics
Bio-generics are generic versions of patent
protected biologicals or protein drugs.
Biological companies resort to genetic
engineering technologies on bacteria and other
cells to produce such drugs on a large scale.
62
Current biopharmaceutical market 18 billion
US 45 EU 30 JAPAN 20 ROW 5
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Table I
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Table I (Cont.)
65
Table I (Cont.)
66
Table I (Cont.)
67
Table 1 (Cont.)
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Key Challenges

• Assessment of bio-equivalence
• Regulating framework for biogenerics
• EU ahead of the US on regulatory matters.

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Some hurdles
The key issue in biogenerics is the assessment of
bio-equivalence. Biologics are far more
complicated than synthetic products and unlike
the latter, they are not produced by chemical
synthesis, but by cells in culture or whole
organisms. As majority of them are defined by the
manufacturers procedure, like fermentation and
purification, product characteristics are
dependent on the procedure. A slight change in
any of the parameters can potentially change the
pharmacokinetics of the product.   Though the
regulatory framework for biogenerics has started
to modify from essential similarity to product
comparability, another hiccup is the lack of
specific regulations for bio-generic products.
Biogenerics are also surrounded by the most
intricate web of patents, including process,
product, formulation and indication.
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Table II
Source BioCentury
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Leading service providers
Manufacturing Formulations Jubilant Organosys
(speciality chemicals/bulk drugs), Shasun
Chemicals (Custom Synthesis), Medreich, Elder,
Divis Laboratories   Clinical Research
Quintiles, Syngene, Chembiotek, Aurigene,
Synchron, Reliance, Covance, Parexel   Bio-informa
tics and other IT services Strand Genomics, TCS,
Satyam, Infosys, GVK Bio, Ocimum, Jubilant Biosys
72
Leading service providers
Drug Discovery/Medicinal Chemistry Aurigene,
Divis Laboratories, Syngene, Suven Lifesciences,
G V K Bio   Pre-clinicals Vimta Labs, Lambda
Therapeutic Research, Lotus Labs   Central Lab
Services S R L Ranbaxy, Vimta Labs
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The new paradigm
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Thank you