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Biotech Pharmaceutical and Medicaldevices
Biotech Pharmaceutical and Medicaldevices
Biotech Pharmaceutical and Medicaldevices
Pharmaceuticals
and Medical
Devices
Global Biotech, Pharmaceuticals and Medical
Device Industry
Biotech Industry - Global Overview
The expected global biotechnology market size: USD
414.5 billion by 2017
75 65
Percentage
50
28
25 18 18 14 17 16
12 13
5
0
-25 -15
Revenues Profitability R&D Market capitalization
2013 2014 2015
Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile 3
Global Overview
2000 versus 2017
Revenues of Top 10 US biotech firms
+650%
European commercial leaders
211
US commercial leaders
717
The Value Chain – Global Biotechnology Industry
Stem cells
Hospitals
Trade shows
Serum Advertisements
Pharmacy
Bacteria
Supporting Activities
► Procurement and Technology development
► The industry is highly technology driven and research intensive. Certain material can be brought from
only from specific agencies that provide quality products at competitive prices
Source: www.statista.com
Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile 4
Medical Devices - Global Overview
The Medical Device market is forecast to grow, from $12 billion in 2013 to $17.5 billion by 2020, at a CAGR of 4.8%
US continues to dominate the global medical devices market, with India and China having the highest
growth rate
CAGR
+9.1%
7 11
CAGR
+4.2%
2013 2018
64 79
CAGR
2013 2018 +2.5%
CAGR
30 34
+5.6%
12 16
7 7
2013 2018
CAGR
9 40
+13.2% 4 17
Medtech market size
(US$ billion) 2013 2018 2013 2018
6 11
2013 2018
CAGR – Compound annual growth rate
Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile 5
Pharma Industry - Global Overview
• Develop, produce and market drugs for use as
medications
1000
500
500
0 0
2006 2011 2016 2010201120122013201420152016201720182019
Emerging markets Rest of the world Pharmaceutical Sales
The Pharma emerging markets are defined by the IMS as countries with greater than 1 USD billion absolute
spending growth of more than 2012-2016 and which have GDP per capita of less than USD 25000 at
purchasing power parity
Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile 6
Biotech, Pharmaceuticals and Medical Device
Industry in India
India Overview
Indian biotech industry is expected to grow at 30.46 percent CAGR to reach USD
100 billion by 2025
► Expected to be 3rd largest global generic Active Pharmaceutical Ingredient (API) merchant market
► India supplies 20% of global generic medicines market exports in terms of volume
Key Segments
Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile 8
Value Chain: Pharma
Marketing
Manufacturing
Drug development
Integration
Clinical trials Regulatory filings
Drug Discovery
Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile 9
Indian Market
Biotech Industry
Market Size of Biotech Industry
► Industry is growing at a CAGR of 20.33% (US$ billion)
► Year on Year growth of 57.14 per cent in FY16 14
► Total industry size stood at US$ 11 billion by FY16 and 12 11 11.6
is estimated to have reached US$ 11.6 billion by FY17 10
► Growth driven by factors such as growing demand, 8 7
intensive R&D activities and strong government 6 5
4.3
initiatives. 4
► Clinical capabilities are developing fast and the country 2
is becoming a popular destination for clinical trials, 0
contract research & manufacturing activities FY 13 FY 14 FY 15 FY 16 FY 17 E
Pharmaceutical Market
Share of Indian generic exports in global 80.0 Indian Pharma Industry US$69.7
generic market, 2015-16 billion
70.0 CAGR: 11.4%
60.0 21.7
50.0 US$40.6
billion
Indian 40.0 21.0
companies, 30.0 12.9
4.0% 20.0 11.7
10.0 27.0
16.0
0.0
2015 2020F
Domestic formulations Formulation exports
API exports
Source: Pharmexil Annual report, 2015-16
Source: EY Research
► By 2020, India is likely to be among the top three pharmaceutical markets by incremental growth and
6th largest market globally in absolute size.
► The generics market stood at US$ 26.1 billion in 2016.
► Low cost of production provides competitive edge over others.
Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile 10
Indian Market
Medical Devices
► India is among one of the top 2- global medical device markets and 4th largest in Asia
USD Billion
Crore (approx. USD 1452 Million) between 5 5.2
2000 and 2016*, reflects the confidence of 4.5
4 3.9
global players in the Indian market 3 3.2 3.2 3.4
► Device market mainly dominated by 2.5 2.8
imports (almost 70%) 2 2
► Significant percentage of buyers of medical 1
devices are private medical institutions and 0
hospitals
Source: Indian Medical Device Market Outlook, 2017, Annual Report 2016-17, Ministry of Chemicals & Fertilizers
Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile 11
Policy Regulations
Key Milestones in Indian Pharma Sector
Before 1970
Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile 12
Karnataka’s Biotech, Pharmaceuticals and
Medical Device Industry
Karnataka’s Unique Advantages
Knowledge Hub
for
Biotechnology
► Karnataka is the number 1 biotech hub in India with revenues of $ 6.5 bn in 2015
► Karnataka Accounted for 35% of India’s Biotech Industry Revolution
► Biopharma is the biggest segment of biotech industry (~60%)
Biotech Units in
Karnataka 380 + 194
Companies + Start-ups
► It is home to over 60% of the country's Biotech companies
► State accounts for 54% of India’s Biotech Workforce
► Biotech start-ups growing at 30% annually in the state
► Karnataka contributes to around 1/3rd of the BT exports of the country
► First state in the country to bring out biotech policy. Version 3 of the policy announced
recently
► Bio-Ventures Fund of INR 50 crores (USD 1 bn)
► Bengaluru Bio Innovation Centre established with state-of-the-art incubation facilities
► 7500+ Biotech Graduates every year
► Institute of Bio informatics and Applied Biotechnology (IBAB) offering courses for PG,
M.Sc, and PhD
► R&D group in the area of Synthetic Biology is in the process of establishment in IBAB
► Centre for Human genetics in Bengaluru Helix Park offers training in Genes analysis
particularly in area of Rare Genetics Disorders
► Ganit Lab setup in Bangalore Helix Park is the only one of its kind in the country
engaged in research and training in Bio-IT
► Institute of Agri-biotechnology setup in Dharwad
► Biotech Finishing Schools established in 12 educational institutions to provide
industry-ready graduates. Second phase of the programme- Biotechnology Skill
Enhancement Programme (BiSEP) taken up in 18 educational institutions
► Karnataka has the highest R&D expenditure in south India (3rd in the country)
► Incubation Centres for Biotech Start-ups being setup in Tier-2/3 cities
► Launched grand challenges scheme under the start-up policy for Biotech sector
► Research labs under green category
Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile 14
Karnataka’s Unique Advantages
Karnataka’s
Karnataka’s Pharma Industry Pharmaceutical Industry
manufactures Bulk Drugs,
Formulations and Medical devices
Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile 15
Driving Growth: Infrastructure Support
Bio Innovation
Clusters with
investment of
USD 20 mn
each
Nutri/
Nutraceutical
Marine Biotech Animal Biotech Bangalore Bio
Agri Biotech and Phyto-
Park, Park, Vivarium, Innovation
Park, Dharwad Pharmaceutical
Mangaluru Bidar Centre (BBC)
Park (N2P2),
Mysore
Bangalore Bio
Innovation Centre
Marine Biotech Park
► Location – Mangaluru ► Currently operational
► R&D on DNA ► Common Instrumentation
sequencing, up scaling facility
technology processing ► 25 SMEs with access to
waste utilization high tech instrumentation
N2P2
► Collaborator – College facility
of Fisheries/ KVAFSU
► Location – Mysuru
► R&D facility to develop
various nutrition and phyto
pharmaceuticals
► Collaborator – CFTRI
Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile 16
Driving Growth: Infrastructure Support
►Exclusive Pharma Industrial areas and Pharma SEZ at Hassan and Yadgir
►Pharma Park at Mangaluru
►Pharma and MedTech Zone to be set up in Bengaluru
►Pharmaceuticals Cluster, Kolhar Indl. Area, Bidar Dist (proposed)
► Location – Bidar
Pharmaceutical SEZ in Yadgir
► Pharmaceutical Cluster in
Kolhar Industrial Area
GSK Pharmaceuticals is
establishing one of the world’s
largest greenfield tablets and
capsules manufacturing facility
Pharmaceutical SEZ in Hassan at Vemgal in Kolar District,
Karnataka, with an estimated
investment of INR 1,000
crores (USD 15 bn)
► General infrastructure,
biotechnology finishing
schools and commercial
space
► Manufacturing units for bulk
drug formulation and
development of medical
devices
► Research and Development
Centres
► Industrial Training Centres
and PPP based vocational
training programs
► Centres of Excellence
► Innovation and Incubation
Centres for Startups
► Exclusive Pharma industrial
areas in Hassan and
Yadagir
Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile 17
Manufacturing in Karnataka
Major Players
Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile 18
Manufacturing in Karnataka
Companies manufacturing Medical Devices in Bengaluru, Karnataka
Major Players
Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile 19
Conducive Policy Environment
Karnataka
Biotech Policy
2017-2022
3 4
Increases the quality of human Provides general infrastructure
resources by supporting specific such as high quality roads, better
educational and research institutions power supply and airports
► Institutions such as IAB, IBAB, CHG and ► Specific fiscal incentives to develop
finishing schools industrial infrastructure
► Fostering entrepreneurship and ► Land facilitation for field trials and
development of new products – Med experiments by agro-biotech enterprises
Tech, Clean Tech, nutraceutiucals, and scientists
pharmaceuticals etc.
5 6
Other Initiatives Integrated Policy Approach
► Set up VCF with private participation- ► Incentives for Biotech Start-ups under
called the KBio- VEN Fund of Rs. 50 Karnataka Startup Policy 2015-20
crores ► Fiscal incentives and concessions
► Biotech policy 2017-22 focuses on 10 offered under the prevailing Karnataka
emerging areas in the Biotechnology Industrial Policy to the biotechnology
field industries and R&D centres
Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile 20
Conducive Policy Environment
Committee to promote private
Infrastructure
► Development of Pharmaceutical parks in
potential locations of Karnataka through PPP pharma sector
► Setting up of SEZs would be encouraged
under the provisions in the SEZ policy An Inter-Ministerial coordination
Committee to review the constraints and
issues faced by the pharma industry and
► Setting up R&D institutions to leverage the facilitate resolution of these periodically
strengths of the state pharma firms currently have to approach
R&D
► Supportive fiscal incentives and grants Drug Control Department for Licensing
would be provided for promoting R&D approvals
activities
Incentives
► Package of Incentives & concessions
offered for Investments (Industrial Policy Fund of INR 50 Crore with contribution of
2014-19) like tax benefits, stamp duty 26% from Government
exemption, green initiative benefits etc.
►
Measures
Development Council and also a Vision service from Drug Control Department
group facilitating industries
► Support for promotional activities, road
shows and sector specific events
Annexure 7 and 8 of Karnataka Industrial Policy 2014-19 aims to develop infrastructure, foster R&D and
attract mega projects in the Pharmaceutical and Medical Device sector respectively
Integrated Policy
Approach
Karnataka Industrial
Policy 2014-19
Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile 21
Enhancing Karnataka’s Skill : Biotechnology
Resulting in
Robust institutional ecosystem providing wide range of courses in genetics and advance
courses for clinicians , R&D in other lines, supporting the growth of sector
Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile 22
Enhancing Karnataka’s Skill: Pharma
► Research base
with presence of
CROs assisting
industry with
clinical research
and trials
50
► Pharmacists trained
under Integrated
Disease Surveillance
120 Project (IDSP) in
2015-16
61 82
► Pharmacy Colleges ► Post Graduation
providing B.Pharm Enrolment
degree to 1270 capacity for M.D.
students in the (Pharmacology)
year 2016-17 in 2016-17
Source: Economic Survey of Karnataka 2016-17
Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile 23
Area of Investments
► Vaccine Technologies
► Drug discovery
► Synthetic Biology Pharma
► Generic Drug
Manufacturing
► Bioremediation
Environment ► Conversion of waste to useful
products
► Biofuels
► Marine Biology Energy
SLSWCC Approved Projects from 2013- SHLCC Approved Projects from 2013-14
14 to 2016-17 to 2016-17
7,000 6,369
2,500
6,000
1,914
5,000 2,000
1,550
4,000
1,500
3,000
2,201.21
1,000
2,000
1,000 500
0
0
Investment (in INR Cr) Employment (in Nos.)
Investment (in INR Cr) Employment (in Nos.)
Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile 24
Investment Opportunities
Investment Facilitation
Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile 25
Additional Chief Secretary to Principal Secretary to
Govt. of Karnataka, Health & Government,
Family Welfare Services Dept. of Information
Additional Chief Secretary to Govt. of Technology, Biotechnology
Karnataka, Health & Family Welfare and Science & technology
Services, #105, VI Floor, 5th Stage, M.S.Building,
I Floor, Vikas Soudha, Ambedkar Veedhi,
Bangalore - 560 001 Bengaluru - 560 001
Phone: 91-80-2225 5324 Tel: 91-80-2228 0562
Fax: 91-80-2235 3916 Fax: 91-80-2228 8340
Email: prs-hfw@karnataka.gov.in Email: itsec@bangaloreitbt.in
Contact Details
Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile 26