BIOTECHNOLOGY Unprecedented Growth Opportunity March 2005 Biotechnology India

BIOTECHNOLOGY Unprecedented Growth Opportunity March, 2005

Biotechnology ØIndia - An Overview ØMarket and Growth Potential ØPlayers ØOpportunities ØWhy India? ØContact in India March, 2005

India - An Introduction ØPopulation Over 1 bn ØStates/UTs 35 ØGeographical Area 3. 3 mn sq kms ØLanguages recognised 22 ØBusiness language English ØPer Capita Income** US$ 534 Ø GDP** US$ 650 bn **(at factor cost & at current prices) 1 USD=43. 54 INR (as on July 4, 2005) March, 2005 Source: CSO Statistics

India - Fast pace Growth Ø Largest democracy Ø 4 th largest economy by PPP index Ø 6 th largest energy consumer Ø For. Ex reserves skyrocket from US$ 42 bn (2001) to US$ 133 bn (February, 2005) Ø GDP growth to continue between 6 -8% Ø 3 rd largest economy by 2050: Goldman Sachs Ø Leading in IT & BPO Ø Oil & Gas and Biotechnology sunrise industries March, 2005

India - Leading the world Ø Hero Honda - largest manufacturer of motorcycles Ø Moser Baer - among the top three media manufacturers in the world Ø Pharmaceutical Industry - 4 th largest in world Ø Walmart, GAP, Hilfiger sources more than USD 1 bn worth apparel from India Ø 100 Fortune 500 have set R&D facilities in India including GE, Delphi, Eli Lilly, HP, Heinz and Daimler Chrysler March, 2005

Biotechnology ØIndia - An Overview ØMarket and Growth Potential ØPlayers ØOpportunities ØWhy India? ØContact in India March, 2005

Biotech Market - Dynamic and growing ØSize (2004 -05) US$ 1090. 5 mn ØLargest segment Biopharma ØRevenue from exports (2003 -04) ØTotal investment (2003 -04) Rate of growth over 202 -2003 March, 2005 56% US$ 137 million 26%

Biopharma leads the way Composition of Indian Biotech Sector (2004 -05) Bio Agri 6. 95% Bio-IT 2. 09 % Bio Industrial 6. 74% Bio Services 8. 95% Bio Pharma 75. 24 % Source: Biospectrum-ABLE Survey March, 2005

Market - A consistent uptrend 25% growth in investment 2002 -03 70% growth in employment 74% growth in R&D manpower US$ 5 billion annual revenues 2010 1 million skilled jobs 10% of global industry March, 2005 Source: Confederation of Indian Industry (CII)

Biotechnology ØIndia - An Overview ØMarket and Growth Potential ØPlayers ØOpportunities ØWhy India? ØContact in India March, 2005

Indian Players March, 2005

MNCs Scripting Success in India March, 2005

Biotechnology ØIndia - An Overview ØMarket and Growth Potential ØPlayers ØOpportunities ØWhy India? ØContact in India March, 2005

Investments • Annual investments in this sector will be of the order of US$ 150 mn and are growing at the rate of 25%. • An additional investment of US$ 216 mn is expected in FY 2005 March, 2005

Invest in Biopharmaceuticals ØVaccine Sales of US$ 383. 6 mn (2004 -05) ØTherapeutic Marketing licenses granted for over 25 recombinant therapeutic proteins ØDiagnostics Sales market - US$ 138. 2 mn (2004 -05) March, 2005

India: The Vaccine Hub • Indian firms estimated to supply 90% of global demand for the measles vaccine, in the near future. • Serum Institute, Pune is believed to be the world`s largest manufacturer of DPT vaccines. • Indian Immunologicals operates the world`s second largest plant for veterinary vaccines and is also the world`s largest manufacturer of the vaccine against Foot and Mouth Disease. March, 2005

Invest in Biopharmaceuticals ØTherapeutic Accounts for 16. 7% of total biopharma sales ØDiagnostics Forecast to grow by 35 -40% in 2005 Immuno diagnostic market to increase 4 to 5 folds by 2005 March, 2005

Invest in Bioinformatics By 2006 bionformatics market to grow 2004 -05 US$ 22. 9 mn By 2006 US$ 120 mn Source: International Data Corporation (IDC) ØData mining Opportunities for investment ØGene annotation ØSoftware bioinformatics interface development March, 2005

Invest in Genomics and Industrial Biotech ØGenomics ØIndustrial Biotech ØSize (2004 -05) March, 2005 US$ 73. 5 mn

Invest in Agri Biotech Biofertilisers GM Crops and seeds March, 2005 Biofuels Biopesticides

Clinical Trials - Destination India Quality Ø Quality guidelines conformed Speed Ø Patient enrolment rates upto six times higher than US Technology Ø CROs to benefit from India’s IT strengths in data management Disease Profile Ø High incidence of infectious/lifestyle diseases Investigators Ø Excellent pool of qualified & trained doctors and physicians Genetic diversity Ethics March, 2005

Biotechnology ØIndia - An Overview ØMarket and Growth Potential ØPlayers ØOpportunities ØWhy India? ØContact in India March, 2005

The India Advantage Excellent network of research laboratories Rich biodiversity Well-developed base industries Extensive clinical trials opportunities Trained manpower and knowledge base March, 2005

The Infrastructure Advantage Ø 40 National Research Institutes 15, 000 scientists Ø 300 life sciences colleges 500, 000 graduates per annum Ø 120 medical colleges 17, 500 medical graduates per annum Ø 200 biotech companies Employing 25, 000 scientists in R&D Ø 100 teaching hospitals Employing medical & paramedical professionals March, 2005

The R & D Advantage Genetic Engineering Biotech R&D strengths spread across range of segments DNA technologies New Drug Delivery Systems Rational drug design Stem cell research Bioinformatics March, 2005

The Policy Advantage ØIndia has transitioned from a process patent regime to a product patent regime w. e. f January, 2005 Ø 150% weighted deduction on R&D expenditure Ø Single window application processing proposed by DBT Ø New biotech proposals to be cleared within 150 days Ø Formation of a SME Growth Fund to provide equity support to small & medium units in the biotechnology sectors (Union Budget. March, 2005 -06) 2005

Union Budget 2005 -06 The Biotech Park Advantage Ø Benefits enjoyed by Export Oriented Units (EOU) extended to Biotech Parks - 100% FDI permitted through automatic route - BTP units exempt from payment of Income Tax - Export proceeds to be realised within 12 months - BTPs allowed to retain 100% export earnings in the EEFC account March, 2005

Biotechnology ØIndia - An Overview ØMarket and Growth Potential ØPlayers ØOpportunities ØWhy India? ØContact in India March, 2005

Contact in India Confederation of Indian Industry (CII) The Mantosh Sodhi Centre 23 Institutional Area Lodi Road New Delhi 110003 Tel 0091 11 24629994 - 7 Fax 0091 11 24626149/24615693 E-mail c. banerjee@ciionline. org March, 2005