Bio-based chemicals to attract $1 bn investment

The bio-based materials and chemicals industry is poised to attract nearly $1 billion in investment this year, led notably by later-stage funding rounds, according to Lux Research. The estimated $974 million investment represents a 28% increase from 2013, suggesting companies that endured the waves of economic disruption have gained maturity and regained investors’ confidence.

“Over the last two years, funding for bio-based materials and chemicals has shifted decisively toward later-stage rounds, reflecting the growing maturing of the industry and the shift from R&D to production,” said Meraldo Antonio, Lux Research Associate and the lead author of the report titled, ‘Dynamics of venture capital funding in the bio-based chemicals industry’

BIRAC invites fresh proposals from biotech companies

The Biotechnology Industry Research Assistance Council (BIRAC), under its advanced technology scheme, Biotechnology Industry Partnership Programme (BIPP), has invited fresh proposals from biotech companies for support on a cost sharing basis targeted at development of novel and high risk futuristic technologies mainly for viability gap funding and enhancing existing R&D capacities of Start-ups and SMEs in key areas of national importance and public good.

BIRAC, a not-for-profit public sector undertaking set up by Department of Biotechnology (DBT), is running this scheme to promote and nurture innovation research in biotech enterprises specially start-ups and SMEs. Major thrust of the programme is towards funding technologies which address a major national problem and/or involves high level of innovation. The proposals spanning across the spectrum of pre-proof-of-concept to validation of established technologies are considered for support in the form of grant and/or loan.

The scheme supports large, medium, small scale companies as well as start-up on cost sharing basis. It would push for high risk, discovery linked innovation and accelerated technology development. Varying models of grants, loans or grant plus loans will be made available under the scheme.  It will be one of the most enabling mechanisms to promote R&D in biotech industry and public private partnership programmes.

CPhI panel to analyse new industry

CPhI Worldwide, organised by UBM Live, has announced its full line up of confirmed expert industry panel members for 2014, building on the huge success of the CPhI annual report launched at CPhI Worldwide in October 2013.









This year’s panel sees the return of 10 thought leaders with the addition of three new members, covering the entire pharmaceutical supply chain from R&D through to finished products, regulatory requirements and economic implications. Additionally, this year panel members are utilising their market insights and analysis year round in the CPhI Pharma Insights series, which cover individual topics and developments across the industry- including the released R&D, manufacturing and Turkey reports, with a United States report due out imminently.

DBT invites fresh proposals from biotech

he Department of Biotechnology (DBT) has invited fresh proposals from biotech companies for providing support on a cost sharing basis targeted at development of novel and high risk futuristic technologies mainly for viability gap funding and enhancing existing R&D capacities of start-ups and SMEs in key areas of national importance and public good.

Under this advanced technology scheme Biotechnology Industry Partnership Programme (BIPP), the DBT supports large, medium, small scale companies as well as start-up on cost sharing basis. It would push for high risk, discovery linked innovation and accelerated technology development. Varying models of grants, loans or grant plus loans will be made available under the scheme.  It will be one of the most enabling mechanisms to promote R&D in biotech industry and public private partnership programmes.

It will also focus on the evaluation and validation of biotech products and indigenous discovery, innovation and technology to products with focus on the products of national relevance or public benefit. BIPP is an advanced technology initiative by the DBT for supporting innovative and challenging R&D in industry.

AstraZeneca and MRC

AstraZeneca and the Medical Research Council (MRC) today announced that they have entered into a groundbreaking collaboration aimed at better understanding the mechanisms of human disease. The collaboration will see the creation of a joint research facility at AstraZeneca's new R&D centre in Cambridge in the UK.

The AstraZeneca MRC UK Centre for Lead Discovery will sit within the new AstraZeneca site at the Cambridge Biomedical Campus, due to be completed in 2016. It will see world class MRC-supported researchers working side-by-side with scientists in AstraZeneca's high throughput screening group, identifying new methods to better understand a range of diseases and potential treatment options.


As part of the collaboration, which will run for an initial period of five years, academic researchers will benefit from unprecedented access to over two million molecules in AstraZeneca's compound library, as well as its state-of-the-art high throughput screening facilities at the new site. Research proposals will be submitted to the MRC that will independently assess and select the best scientific proposals from a broad range of therapy areas and diseases.

 The MRC will fund up to 15 screening projects per year to be carried out at the Centre for Lead Discovery. AstraZeneca will have the first option to enter a negotiation to license any resulting drug discovery programmes of relevance to the company's therapeutic areas of interest. If this option is not used, the academics can negotiate with other parties.

Key market dynamics - Pharma

Geographic balance will continue to shift toward pharmerging countries, which are expected to grow at a 14-17% rate through 2014, while major developed markets will grow at 3-6%.  The US will remain the single largest market in the world with revenue just short of $400 million by 2014 while China will grow to become the world’s 3rd largest market for pharmaceuticals during this period.
Therapy area growth will continue to be driven by innovation and areas of unmet need.  In the areas of oncology, diabetes, multiple sclerosis and HIV, annual growth is expected to exceed 10% as new drugs are brought to market, patient access is expanded and funding is redirected from other areas where lower cost generics will be available.

Broad cuts in spending will be applied by public payers to publicreduce growth in drug budgets.  Publicly funded health systems are under increased pressure to reduce growth in drug budgets following the global economic downturn.  Governments seeking to restore fiscal balance will likely apply restrictions or reductions in reimbursements to reduce drug spending.

Peak years of patent expiries will shift major therapies to generic dominance. Products with over $140 billion in revenue will face generic competition in the next five years with therapy areas like cholesterol regulators, antipsychotics and anti-ulcerants being affected the most.
Closer scrutiny of new products will keep product launches in the range of 30-35 products annually but these products will be subjected to more rigorous and complex assessments by payers before being accepted into clinical practice and reimbursed.

In moving beyond 2014 and leading up to 2020, IMS expects to see a continuing shift toward biopharmaceuticals, specialty-driven products and changes in the mix of disease areas of interest.
Discovery Search Partners has an outstanding performance record in pharmaceuticals, biopharmaceuticals and specialty pharmaceuticals.  We have proven expertise across all functional areas, with possibly the deepest experience in R&D where innovation is the critical ingredient driving company success.  Additionally, we have broad therapy experience and can cite numerous placements of note in virtually all therapy areas of interest. 

Fare well - Pharma

The leading 50 pharma companies from the state registered EBDITA margins of 23.9 per cent during 2012-13 as against 22.1 per cent and net profit margins of 13.9 per cent as compared to 10.9 per cent in the previous year. These companies rewarded their investors with handsome dividends.

While on one hand the loss of patent and depreciation of rupee against US dollar may boost revenues in the current year, on the other hand, expanded scope of drug price control may have an adverse impact on both revenue and profitability. The global pharmaceutical environment remained volatile and challenging due to lower R&D successes, competition among generic players and gradual decline in realisations. Stringent approval process, quality problems and legal fights also led to increased complexity in the pharma business world.

Despite the above business environment, the state-based listed 50 pharma companies registered healthy performance during 2012-13. The aggregate net sales of Pharmabiz sample of 50 pharma companies improved by 17.9 per cent to Rs 60,775 crore during the year ended March 2013 from Rs 51,549 crore in the previous year. As compared with the sales of leading 100 Pharmabiz pharma companies, the state-based 50 companies contributed 42.6 per cent during 2012-13. Among the 50 companies, 12 companies registered net sales of over Rs 1,000 crore during 2012-13. Further, eight multinational companies have established strong presence in Maharashtra.


The MNCs have rewarded their shareholders with higher equity dividends during 2012-13. GSK enhanced its equity dividend to 500 per cent from 450 per cent and Pfizer declared higher dividend of 325 per cent as compared to Rs 125 per cent. Abbott, Sanofi and Novartis maintained equity dividend at 170 per cent, 330 per cent and 200 per cent respectively.

With better performance and investments in R&D, the share price of several companies are moving to near to their highest levels and offering better returns to shareholders. However, the burden of FCCBs, stringent regulatory norms, drug price control, competition, etc., may put pressure on working in the current year. Further, limited success in R&D activities may also impact growth plans. 

Biotech - Bengaluru

Biotechnology has proved to be one of the fastest growing sectors in India and is expected to play a key role in shaping the country’s  rapidly developing economy. The sector has been looking at  combating life threatening diseases, reduce  energy crisis and food scarcity which are among the serious  challenges globally.  These  issues which were  also hindering the growth of the country have led the biotech sector to advance its research and development capabilities and bring to the fore novel solutions like newer drugs and  advanced technologies to handle shortage of  fuel and food.

The sector which offers employment to 100, 000 people , has the potential to increase it to six to seven times in the coming years. It is optimally poised to deliver higher growth and introduce new products in 2013 which is seen as a year of immense possibilities.

Karnataka plays a crucial role in the biotech success story of India. The state accounts for over 50 per cent of the 300 biotech companies in India. It has also chipped in 50 per cent of the Rs.28,500 crore ($5 billion) generated by Indian biotech in 2012-13 contributed by the vaccines, diagnostics, drug delivery devices, biosimilars and bio fuels.

Of the 390 R&D companies in Bengaluru, biotech industry forms an integral part of the innovation. This importance to technology and the rising eminence of Bengaluru through the 13th edition of Bangalore India Bio cannot be ignored, said  principal secretary, department of information technology, biotechnology and science & technology, government of Karnataka.


Karnataka has created safe good biotechnology practices which could be shared with other states and also become a brand ambassador for the country. At this platform, the three -day event will see an  expression of  diverse views which could be converted into proposals to the union and state governments .We need to advocate good research, manufacturing and marketing practices  which is the foundation of economic prosperity and growth, said Kiran Mazumdar-Shaw, chairperson Vision Group on Biotechnology, government of Karnataka, Executive Committee member-Association of Biotechnology Led Entrepreneurs (ABLE) and CMD Biocon Limited.