June 13, 2004
Source: Times of India
India 3rd among emerging leaders

TIMES NEWS NETWORK

NEW DELHI: India has been ranked third among the emerging biotech leaders in the Asia-Pacific region. The ranking, based on the number of biotech companies in a country, placed India (96) behind Australia (228) and China, including HK (136), but said it was building a critical mass in skills and capabilities.

The sector is expected to generate $5 billion in revenues and create more than a million biotech jobs for India in next 5 years, said Ernst & Young (E&Y) in its three-part Global Biotech Report for 2004. It cited a number of government initiatives as well as industry efforts in 2003 that are expected to encourage investments in the sector and said biotech companies could benefit from new sources of capital and policy changes.

The report said the sector was still a new ground for VCs, which limited funding options, but added that there were encouraging moves from proposals like UTI/Technology Development Board’s $40 million fund as well as Department of Biotechnology fund of $21 million. E&Y said.

"Some Indian biotech companies are accelerating efforts towards developing high-end biotech products and technologies. Reliance Life Sciences plans to launch genetically engineered skin, and Avesthagen has won a US patent for a multiple use genetic modification technology." It also cited example of a small company Xcyton, which makes biotech diagnostic kits and has made inroads into the global and domestic medical diagnostic markets. And, Metahelix, working with New Zealand-based ViaLactia Biosciences, - to test 200 genes a year.