Despite some serious limitations on financing, India's biotech sector has been going gangbusters, according to a new report from the Association of Biotechnology Led Enterprises in Bangalore. The association says the Indian biotech sector is expanding at a rate of 37.5 percent, double the global rate of expansion. The industry is expected to hit $5 billion in revenue annually by 2010. One of the biggest obstacles to even faster growth, say analysts, is that venture capitalists in the country have been reluctant partners. As a result, Indian biotech companies have been turning to a number of innovative strategies to help fuel their growth. One of those strategies is setting up a U.S. research and development subsidiary. Others look to gin revenue quickly or are turning to global banks for funds. But the report notes that a new business model is still needed that will help fuel expansion.
- read the Red Herring report on the Indian biotech sector