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Hyderabad, the happening city: Students observing the electronic microscope at the Centre for Cellular and Molecular Biology (file photo).

G. Naga Sridhar

Hyderabad, which has become synonymous with the growth of information technology industry in the recent past, is now emerging as a hub of discovery research in biotech and pharma industry as well.

The biotech industry, which has been anchored firmly by the Genome Valley project, has already been a major earner of foreign exchange (Rs 4,914 crore from pharmaceuticals, biotech, chemicals and allied chemicals) for the State. The number of biotech companies in Genome Valley now stands at 50. “With the ongoing expansion of the third phase of Genome Valley, another 10 companies will be added. They include major names such as Biocon,” Mr K.R.K. Reddy, Additional Secretary and Director Biotechnology, Government of Andhra Pradesh, said. The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) is currently developing the third phase of Genome Valley.

The presence of reputed research institutions like the Indian Institute of Chemical Technology (IICT), Centre for Cellular and Molecular Biology (CCMB), National Institute of Nutrition (NIN) and Centre for DNA Fingerprinting and Diagnosis (CDFD) and University of Hyderabad are also adding up to the industry’s fascination with Hyderabad.

In addition to this, about 20 major corporate hospitals, well equipped for clinical trials of international standards and varied patient pool would also come handy for biotech and pharma industry growth as they grow in size and global operations.

“While these institutes are well-known and are engaged with industry in various collaborations, recently-set up institutions like The National Institute for Pharmaceutical Education and Research (NIPER) and Institute of Life Sciences will act as key-drivers for industry in Hyderabad,” Mr Reddy added.

NIPER, inaugurated a couple of weeks ago at the IDPL research centre in Hyderabad, would also play the role of an incubator in participation with the pharmaceutical industry. It is seen as a centre of excellence and will play the role similar to IIMs in bridging the talent requirement in the pharma sector. The total investment in NIPER would be Rs 200 crore. Over the next two years, it would offer admissions to about 150 graduates in different disciplines of pharmaceutical sciences.

Efforts are also on to expand the public-private partnership in the Institute of Life Sciences. “Currently, Dr Reddy’s Laboratories, University of Hyderabad and Government of Andhra Pradesh are involved in the institute. We are trying to rope in more industries and talks are on in this direction,” the official said.

On the investment front, the city is on the radar of major companies and venture capitalists. According to official sources, in biotech sector alone, there has been over Rs 700 crore investments (excluding investments in infrastructure). The AP Venture Capital Fund had raised more than Rs 150 crore. According to Dr J. Geeta Reddy, Minister for Industries, Government of Andhra Pradesh, investments in the biopharma sector could cross Rs 1,800 crore during the next three years generating employment opportunity for about 50,000 people. In the pharma sector, the State capital boasts of over 150 companies, a majority of them being the bulk drug manufacturers. Major companies such as Dr Reddy’s, Aurobindo Pharma, Matrix, Divi’s etc are spearheading growth and have committed to invest significantly. Dr Reddy’s will be setting up a Special Economic Zone for Active Pharmaceutical Ingredients (APIs) in the Ranga Reddy district with $25 million. The company, which became the No 1 firm in revenues among pharma firms in the country, is currently scouting for land for SEZ. Similarly, Aurobindo Pharma is also setting up an SEZ in Jedcherla in Mahboobnagar, where it has been provided land.

The State Government, to effectively address the issue of migration of State-based pharma units to Himachal Pradesh, Uttaranchal and Jammu & Kashmir due to heavy tax incentives, had earlier decided to develop a special economic zone (SEZ) exclusively for pharma formulations.

The SEZ would come up on 300 acres and be a part of the Green Industrial Park proposed over 960 acres at Jedcherla, about 70 km from Hyderabad and about 40 km from the new international airport at Shamshabad. Aurobindo Pharma and Hetero Drugs would act as the anchor clients to acquire 240 acres in the SEZ to set up their formulation units. The investment in each SEZ could be over Rs 200 crore.

The pharma industry prospects are also attracting foreign agencies which are eager to take part in the development of bulk drug industry. The Bulk Drug Manufacturers Association, Government of Andhra Pradesh and Government of Sweden inked an agreement recently to provide financial and technical aid to Small and Medium Enterprises (SMEs) engaged in bulk drug production. “Initially a fund has been created with Rs 25 crore to provide aid to SMEs in meeting the norms set by the Andhra Pradesh Pollution Control Board. This kind of initiatives will help small industries considerably,” Mr M. Narayana Reddy, President, BDMA, said.

Similarly GTZ, the German Technical Cooperation, has signed a memorandum of understanding (MoU) with the Drugs & Pharmaceuticals Manufacturers Association (DPMA) in Hyderabad recently. The emphasis would be on helping Small and Medium Enterprises (SMEs) in the pharma sector, which requires various interventions to stay in competition and grow.

The GTZ has its own division to cater to the SME sector. Through this MoU, the division and the DPMA would work together to extend the services for the pharma cluster in Hyderabad, said Mr Venkat Reddy, Chief of DPMA and Lee Pharma. Further, it also inked a pact with State Bank of Hyderabad. As per the agreement, financial support to the SMEs in the pharma cluster in Hyderabad would be extended.

More Stories on : Bio-tech & Genetics | Andhra Pradesh | Pharmaceuticals

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