emerging markets

Indian biotech, state partner on $20M park

Calisha Myers — Mon, 03 Nov 2008 12:28:28 -0500

India's Bharat Biotech International and the state of Orissa have entered into a public-private partnership to construct a $20 million technology park for pharmaceutical and biotechnology companies. Orissa, located on India's east coast, has allocated 55 acres for the project, which is expected to be completed in 8 years. Ten acres of the site has been reserved for a Biotechnology Incubation Centre to be used by researchers, entrepreneurs and students. The venture is the first of its kind in Orissa, but state governments all over India have been creating incentives and investing in initiatives and infrastructure to benefit from the growing biotech and pharma industries.

Bharat Biotech specializes in the research, development and manufacture of vaccines and biotherapeutics, but has also assisted in the development and commercialization of technology parks in India, according to a report by Outsourcing-Pharma.

"We are delighted that the Government of Orissa has acknowledged our competence and awarded this prestigious project to BBIL," said Dr Krishna Ella, chairman and managing director of Bharat Biotech. "Our task is to focus on rapid development of this park by developing core infrastructure and technology to enable establishment of new companies whereby new local entrepreneurs in the biotechnology field will be created."

- check out this article for more

India's biotech growth slows to 20%

Maureen Martino — Wed, 16 Jul 2008 08:36:42 -0400

After five years of rapid expansion, India's biotech industry growth has slowed to 20 percent from previous highs of 50 percent, according to the Association of Biotech Led Enterprises (ABLE). The rising rupee and pricing pressures in the world market are to blame. "The inability to sustain the growth momentum can be attributed to several factors; the primary one being that revenues from Indian-made innovative biotech products that can be sold globally are yet to kick in," said K.K. Narayanan, president of ABLE. Still, the country is expected to bring in between $13 billion and $16 billion by 2015.

- here's the report

Study projects new wave of globalization in biopharma

John Carroll — Wed, 11 Jun 2008 11:13:18 -0400

Don't be misguided by dated reports discounting the impact Indian and Chinese scientists are having in drug development and other key technologies, says a new study from Duke and Harvard. Looking at recent data, research teams from those two countries have swiftly expanded their work in the field. A look at 2006 data shows a four-fold increase in the number of patents filed since 1995. And pharma giants like Merck, Lilly and J&J have been shifting research and manufacturing to India and China as they seek new ways to develop drugs on a lean budget, pushing a new wave of globalization.

"Driven by cost pressures and growth opportunities, they are partnering with firms there to do sophisticated drug research and clinical testing," writes Vivek Wadhwa in BusinessWeek. "Indian and Chinese companies are making strides in the segments of global value chains that are most lucrative. They are also now performing their own drug discovery with the hope of marketing new products through their multinational partners."

- read the article from BusinessWeek

Daiichi Sankyo acquires Ranbaxy in $4.6B deal

John Carroll — Wed, 11 Jun 2008 11:12:29 -0400

Ranbaxy's drive to become a research-based drug developer and major manufacturer has led it straight into the welcoming arms of Japan's Daiichi Sankyo, which announced it is buying a majority stake in the Indian pharma company. After Sankyo completes a buyout of the founding Singh family's stake in the company, Ranbaxy will become a subsidiary operation. The deal is valued at $4.6 billion and will create a combined company worth about $30 billion.

That move positions Daiichi Sankyo to become a major supplier of low-priced generics to Japan's aging population and accelerates a trend by Japanese pharma companies to enter emerging Asian markets, where they see much of their future growth. The acquisition stunned investors and analysts alike, who were caught off guard by a bold move from a conservative player in the industry.

- check out this release for more on the deal
- read the report from The Times