Posted by: tristar3research | December 16, 2010

Indian Biotechnology Industry: $5 Billion Market Growing over 15% Annually

The life sciences industry in Asia clocked a growth of 3.4% to record revenues of $110.89 billion in the calendar year 2009, with nearly half the revenues — $54.24 billion — coming from listed companies, according to a survey by BioSpectrum Asia. With revenues of $22 billion, Chinese publicly listed companies grew the fastest at 52%, followed by India at $21 billion. South Korea, Australia and Singapore followed India in terms of revenue.[1]According to a recently released “Vision 2020” report produced by ABLE and PriceWaterhouseCoopers at the request of India’s Department of Industrial Policy and Promotion, the global bio-pharmaceutical market could be worth $319 billion by 2020 with India expected to capture a 10 percent share.[2]

The drive to acquire generics has been the catalyst with medicines worth over $ 80 billion going off patent at the US Patent and Trademark Office between 2011 and 2013, driving big pharmas to India, the largest producer of generic medicines after the US and European Union. “Ninety-five per cent medicines used in India are generics made in the country.[3]FICCI-IMS health paper on the global generic market revealed that India and possibly China will take control of the generic market through aggressive Active Pharmaceutical Ingredients (API) and fine chemicals intermediate supply chain strategies. The paper points out that there are significant opportunities as well as risks and challenges for an increased play in the generics market.A study amongst industry leaders shows that total manufacturing cost per unit in Indian manufacturing facility is half compared to that of European facility. R&D cost is substantially lower in India and China, thus forcing key pharma players to look for a shift in their R&D bases to these two countries.[4]

The size of the Indian market represents between 4 and 5% of the global market, growing at 15-17% annually, according to industry consultants and home-based Indian market research.[5]The Indian biotechnology sector is one of the fastest growing knowledge-based sectors in India and is expected to play a key role in shaping India’s rapidly developing economy. With numerous comparative advantages in terms of research and development (R&D) facilities, knowledge, skills, and cost effectiveness, the biotechnology industry in India has immense potential to emerge as a global key player.


[1] Life Sciences: India No.2 Behind India, Rediff Business, rediff.com, 7 July, 2010 – http://business.rediff.com/slide-show/2010/jul/07/slide-show-1-life-sciences-india-behind-china.htm

[2] US-India Business Council to focus on biotechnology, Economic Times of India, 10 September, 2010 – http://economictimes.indiatimes.com/news/news-by-industry/healthcare/biotech/biotech/US-India-Business-Council-to-focus-on-biotechnology/articleshow/6529905.cms

[3] Sellout syndrome, Sanchita Sharma, Hindustan Times, 31 May, 2010 – http://www.hindustantimes.com/News-Feed/newdelhi/Sellout-syndrome/Article1-550939.aspx

[4]Low cost forcing key pharma players to shift base to India & China: FICCI-IMS health paper, PharmaBiz, Mumbai, 30 November, 2010 – http://www.pharmabiz.com/article/detnews.asp?articleid=58590&sectionid=5

[5] Top Biotechnology Start-ups in India, chillibreeze, byUma Makhija, July, 2010 – http://www.chillibreeze.com/articles_various/Top-Biotechnology-Start-ups-in-India-710.asp

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