The Hindu Business Line : `India, a hothouse for biotech R&D'

Bangalore June 10 Asian countries provide certain distinct advantages for biotech companies of the developed countries, which are aiming to consolidate through partnerships, acquisitions and mergers in the next two years.

Cost advantage, quality standards would play a key role in consolidation and rapid growth of large and medium-sized international companies, which was the theme at the three-day Bangalore Bio 2007 meet here.

The meet also highlighted India's pre-eminent position among the emerging `biotech powers' for its own consolidation after its remarkable growth in the last two years.

`Tremendous activities'

Mr Alok Gupta, Country Head, Life Sciences & Technology, Yes Bank Ltd, said, "There have been tremendous activities in the life science sector over the past few months. Lots of acquisitions, outsourcing deals, R&D, increasing cross border discussions on IPR licensing, etc — all reinforcing the message of India's and Asia's growing importance in the sector."

He was participating in the session on Finance & Marketing — Innovation & Investment at the Bangalore Bio 2007.

Mr Crispin Kirkman, Managing Director, Emerging Technologies Network Agency, UK, said, while underlining the ability of Asian pharmaceutical companies in retaining their cost advantage and matching the quality standards of the West, said that India was an increasingly attractive destination for R&D activities in the pharmaceutical and biotechnology industry.

"Western companies are looking to partner with Asian companies especially Indian companies because of low cost, flexibility, increasing number of FDA and other key international approvals, high proficiency in health care and science, access to Asian market and excellent talent pool."

Planning is key

Mr Mark Ravera, Principal, Strategic Pharma Consulting Group, LLC USA, stressed on planning as a key strategy. He said, "Before entering a new market, a proper planning, clear focus and flexibility are key to success. Knowledge of target market needs to be incorporated in the drug development efforts — the earlier, the better. Focus on the therapeutic area is needed to build depth of expertise for sustained success while flexibility is needed due to imminent changes in market."

"Drug discovery may be feasible, but just like US-based small biotechnology companies, Asian companies will have to look for partners to help bring any thriving innovation to market.

"Early stage funding remains one of the biggest challenges, which the industry is facing in spite of various developments happening in biotechnology sector. Investors are not willing to take risk, which is involved while investing in the incubation stage of the company. They are more in favour of mid- to late-stage investments," concluded Mr Gupta.

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