India’s biotechnology sector is expected to touch as much as $8 billion growing at a pace of 20% per annum for the next five years, says a recent survey report titled ‘India Life Sciences: Vision 2015′ prepared by the Confederation of Indian Industries (CII) and Yes Bank Knowledge Report .
Growing at CAGR of 20% per year, Indian biotech industry India will capture roughly 3-5% of the biopharmaceuticals market by 2015.
Among the biotech product categories, the sales of human vaccines have been forecasted to grow by a 10-13% CAGR over the next five years as the market for vaccines shifts from traditional to combination vaccines.
Apart from bulk government orders for combination vaccines from the Central Government under its numerous immunization initiatives, demand for conjugate vaccines in the paediatric and adolescent segment are the drivers of vaccine market growth, according to the report.
Innovative products like bivalent and multivalent vaccines will also spur the rapid growth in this segment by increasing the demand. Shanchol, a bivalent oral vaccine jointly developed by Shantha Biotech and International Vaccine Institute, is an example.
The CII-Yes Bank report on life sciences industry is generally optimistic about the future investments in the biotech sector.
While new business models and products, growing market requirement, private equity investors are expected to augment their interest in the sector, better education and awareness of disease prevention through biopharmaceuticals, rising incomes and government participation will contribute to the steady growth of the industry.
R&D focused Indian biotech companies have the opportunity to enter into alliances through collaborative development projects, the report suggested. Firm with limited financial resources can partner with larger companies for product development and licensing at an early stage.
Of late, more small and medium companies getting into the discovery process. This increasing number of small and medium players with good science and research background will further fuel the growth of the market as they can be the preferred partners in offshoring activities by pharma companies preferring to outsource various stages of the drug discovery process.
The market for contract research & development to grow at a CAGR of 31% to reach a market size of $ 3 billion by 2015, the report estimates.
Considering India’s unique positioning in biotech sector, the trend of outsourcing various aspects of drug discovery & development could only rise. India’s repute as a low cost destinations may help this trend grow faster.
Domestic market offers huge oppotunities for Indian biotech firms, the report noted.