Bangalore, 15 July 2008: The Indian biotech industry reported revenues of $ 2.5 billion in the just concluded FY 2007-08, reveals the 6th BioSpectrum-ABLE Biotech Industry Survey. The heady growth achieved by the industry in the last five years dropped to 20% in 2007-08 due to appreciation of the rupee and price pressures in global markets.

The BioSpectrum Biotech Industry Survey conducted with Association of Biotech Led Enterprises (ABLE), shows that the industry’s revenue grew to Rs 10,273 crore or $2.56 billion in the fiscal ended March 31, 2008 from Rs 8,541 crore or $ 2.01 billion in 2006-07. In 2007-08, nearly two-thirds of the industry’s revenue came from exports, so strengthening of the rupee was an important reason for the industry’s slow down. The rupee gained 10% to 12% against the dollar last fiscal. 

Commenting on the findings of the survey Mr. Narayanan Suresh, Group Editor, of BioSpectrum said, “After five straight years of over 30% growth, India’s fledgling biotech industry has slowed down. The appreciation of the rupee for most of 2007-08 stole the high growth momentum from an industry that records two-thirds of its revenues from exports.” 

In 2007-08, the industry’s investments touched Rs 2,750 crore, an increase of over 21% compared to the previous fiscal. Based on the current trends and the new progressive biotech policy in place, the survey forecast revenue of about $13-$16 billion by 2015. 

The revenues could be higher if some innovative products, which are currently in the pipeline, receive regulatory approval. Dr KK Narayanan, President of ABLE, said, “The inability to sustain the growth momentum can be attributed to several factors; the primary one being that the revenues from Indian-made innovative biotech products, that can be sold globally, are yet to kick- in.”

Company-wise growth
Pune-based Serum Institute emerged as the top biotech company with revenues of Rs 987 crore for the third consecutive year followed by Biocon, Panacea Biotech and Nuziveedu Seeds.

The survey shows that Hyderabad-based Nuziveedu Seeds with revenues of Rs 303 crore was the number one Bioagri company beating last year’s winner Salem-based Rasi Seeds. 

The sector had a compounded annual growth rate (CAGR) of 34%. BioServices had the highest CAGR of 63% followed by the Bioagri sector with 61%. 

BioSpectrum-ABLE Top 20 Companies

Segment-wise growth

Biotech Industry in 2007-08

Bioservices services had the highest rate of growth at 43% followed by bioinformatics, which grew 31% to clock Rs 190 crore in revenues. 

Two segments of the industry - Biopharma and Bioagri - experienced slow growth during 2007-08. Biopharma , accounting for nearly two-thirds of the industry’s revenue, grew by only 16% and contributed to the slow growth of the industry.

"The Biopharma Industry in India is coming of age now and the next 5 years will be a very interesting period for the Indian Biotech industry. Bioservices will continue to attract significant interest, and Biogenerics exports to the regulated markets are likely to produce a quantum leap in company earnings, commented Mr Shrikumar Suryanarayan, Director General of ABLE.. 

“There is also a growing club of companies in India that are beginning to develop novel biotechnology based pharmaceutical products for India and the world. Besides healthcare, we also expect Biotechnology to begin to contribute significantly to other areas of the economy such as the Biofuels sector", Mr Suryanarayan added.

The Bioagri sector which took off in 2005 and 2006 witnessed a slow down as Bt cotton seeds, marketed by about two dozen companies, faced pricing pressures in major markets. Anti-GM protests forced many state governments to ask Bt cotton producers to slash the license fee drastically. 

However, increasing popularity of the transgenic cotton seed led to a significant increase in cropping area. This led to a 30% growth of Bioagri segment to touch revenues of Rs 1,200 crore. 

A total of 131 Bt cotton hybrids were approved for plantation in 2007, compared to just 61 in 2006. Maharashtra tops Bt cultivation, with nearly 46% of the national share or 2.88 million hectares under cultivation. Andhra Pradesh is the second largest Bt cotton planting state with 1.19 million hectares under cultivation

Exports
Biotech exports grew to Rs 5,733.7 crore in 2007-08. The share of exports in the total biotech pie is close to 56%. 

Biopharma exports accounted for over 70% of the total industry, while the Bioservices sector had 26% share in exports (Rs 1,502 crore). 

Higlights Of Biospectrum-Able Top 20 Companies Survey

• The Top 3 companies, Serum Institute of India, Biocon and Panacea Biotec, retain their 2007 positions.

• The Top 2 companies, Serum Institute of India and Biocon, have revenues in excess of Rs 900 crore each.

• The Top 3 companies account for 25% share of the total biotech revenues of Rs 10,274 crore.

• The Top 3 companies are in the Biopharma space.

• The Top 5 companies are domestic companies accounting for 31% of total biotech sales.

• The Top 20 companies registered $1.25 billion in revenues and contributed to almost 50% of the total biotech business.

• Only three companies, all of them Biopharma companies, had revenues of Rs 500 crore in 2007-08. 

• There are seven companies with revenues of Rs 200 crore and above 

• About 85 % of the top 20 companies have revenues in excess of Rs 100 crore.

• About 65 % of the Top 20 companies are from the biopharma sector, while 15% of this list comprises companies from the Bioagri sector.

• Top 20 Home grown biotech companies accounted for almost 48% of the total biotech market.

For media queries, please contact:
Ch. Srinivas Rao, 
Executive Editor, BioSpectrum
Email: srinivasch@cybermedia.co.in 
Mobile + 91 98455 80279

OR

Shrikumar Suryanarayan, 
Director General, ABLE
Email: shri@ableindia.org 
Mobile: + 91 98 450 12680