Unprecedented Growth Opportunity

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Unprecedented Growth Opportunity
BIOTECHNOLOGY
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Biotechnology

• India - An Overview
• Market and Growth Potential
• Players
• Opportunities
• Why India?
• Contact in India

3
India - An Introduction
Over 1 bn 35 3.3 mn sq kms 22 English US
534 US 650 bn

• Population
• States/UTs
• Geographical Area
• Languages recognised
• Business language
• Per Capita Income
• GDP

(at factor cost at current prices) 1USD43.54
INR (as on July 4, 2005)
SourceCSO Statistics
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India - Fast pace Growth

• Largest democracy
• 4th largest economy by PPP index
• 6th largest energy consumer
• ForEx reserves skyrocket from US 42 bn (2001)
  to
• US 133 bn (February, 2005)
• GDP growth to continue between 6-8
• 3rd largest economy by 2050 Goldman Sachs
• Leading in IT BPO
• Oil Gas and Biotechnology sunrise industries

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India - Leading the world

• Hero Honda - largest manufacturer of motorcycles
• Moser Baer - among the top three media
  manufacturers
• in the world
• Pharmaceutical Industry - 4th largest in world
• Walmart, GAP, Hilfiger sources more than
• USD 1bn worth apparel from India
• 100 Fortune 500 have set RD facilities in India
• including GE, Delphi, Eli Lilly, HP, Heinz
  and Daimler
• Chrysler

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Biotechnology

• India - An Overview
• Market and Growth Potential
• Players
• Opportunities
• Why India?
• Contact in India

7
Biotech Market - Dynamic and growing

• Size (2004-05) US 1090.5 mn

• Largest segment Biopharma

• Revenue from exports (2003-04) 56

• Total investment (2003-04) US 137
  million
• Rate of growth over 202-2003 26

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Biopharma leads the way
Composition of Indian Biotech Sector (2004-05)
Bio Industrial 6.74
SourceBiospectrum-ABLE Survey
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Market - A consistent uptrend
25 growth in investment
2002-03
70 growth in employment
74 growth in RD manpower
US 5 billion annual revenues
2010
1 million skilled jobs
10 of global industry
Source Confederation of Indian Industry (CII)
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Biotechnology

• India - An Overview
• Market and Growth Potential
• Players
• Opportunities
• Why India?
• Contact in India

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Indian Players
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MNCs Scripting Success in India
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Biotechnology

• India - An Overview
• Market and Growth Potential
• Players
• Opportunities
• Why India?
• Contact in India

14
Investments

• Annual investments in this sector will be of the
  order of US 150 mn and are growing at the rate
  of 25.

• An additional investment of US 216 mn is
  expected in FY2005

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Invest in Biopharmaceuticals

• Vaccine Sales of US 383.6 mn (2004-05)

• Therapeutic Marketing licenses granted for
• over 25 recombinant therapeutic
• proteins

• Diagnostics Sales market - US 138.2 mn (2004-05)

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India The Vaccine Hub

• Indian firms estimated to supply 90 of global
  demand for the measles vaccine, in the near
  future.
• Serum Institute, Pune is believed to be the
  worlds largest manufacturer of DPT vaccines.
• Indian Immunologicals operates the worlds second
  largest plant for veterinary vaccines and is also
  the worlds largest manufacturer of the vaccine
  against Foot and Mouth Disease.

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Invest in Biopharmaceuticals

• Therapeutic Accounts for 16.7 of total
  biopharma
• sales

• Diagnostics Forecast to grow by 35-40 in
  2005
• Immuno diagnostic market to increase
• 4 to 5 folds by 2005

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Invest in Bioinformatics
By 2006 bionformatics market to grow
2004-05 US 22.9 mn By 2006
US 120 mn
Source International Data Corporation (IDC)

• Data mining
• Gene annotation
• Software bioinformatics
• interface development

Opportunities for investment
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Invest in Genomics and Industrial Biotech

• Genomics

• Industrial Biotech

• Size (2004-05) US 73.5 mn

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Invest in Agri Biotech
Biofertilisers
Biofuels
GM Crops and seeds
Biopesticides
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Invest in Agri Biotech
Biofertilisers
Biofuels
GM Crops and seeds
Biopesticides
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Clinical Trials - Destination India
Quality Speed Technology Disease
Profile Investigators Genetic diversity Ethics

• Quality guidelines conformed
• Patient enrolment rates upto six times higher
  than US
• CROs to benefit from Indias IT
• strengths in data management
• High incidence of infectious/lifestyle diseases
• Excellent pool of qualified trained doctors and
  physicians

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Biotechnology

• India - An Overview
• Market and Growth Potential
• Players
• Opportunities
• Why India?
• Contact in India

24
The India Advantage
Excellent network of research laboratories
Well-developed base industries
Rich biodiversity
Extensive clinical trials opportunities
Trained manpower and knowledge base
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The Infrastructure Advantage

• 40 National Research
• Institutes
• 300 life sciences
• colleges
• 120 medical colleges
• 200 biotech companies
• 100 teaching hospitals

15,000 scientists 500,000 graduates per
annum 17,500 medical graduates per
annum Employing 25,000 scientists in
RD Employing medical paramedical
professionals
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The R D Advantage
Genetic Engineering DNA technologies New Drug
Delivery Systems Rational drug design Stem cell
research Bioinformatics
Biotech RD strengths spread across range of
segments
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The Policy Advantage

• India has transitioned from a process patent
  regime to a product patent regime w.e.f January,
  2005
• 150 weighted deduction on RD expenditure
• Single window application processing proposed by
  DBT
• New biotech proposals to be cleared within 150
  days
• Formation of a SME Growth Fund to provide equity
  support to small medium units in the
  biotechnology sectors (Union Budget 2005-06)

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Union Budget 2005-06
The Biotech Park Advantage

• Benefits enjoyed by Export Oriented Units (EOU)
  extended to Biotech Parks
• - 100 FDI permitted through automatic route
• - BTP units exempt from payment of Income Tax
• - Export proceeds to be realised within 12 months
• - BTPs allowed to retain 100 export earnings in
  the EEFC account

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Biotechnology

• India - An Overview
• Market and Growth Potential
• Players
• Opportunities
• Why India?
• Contact in India

30
Contact in India
Confederation of Indian Industry (CII) The
Mantosh Sodhi Centre 23 Institutional Area Lodi
Road New Delhi 110003 Tel [phone] -
7 Fax [phone] E-mail
c.banerjee_at_ciionline.org