Biotech market to reach $5 bln by 2010: Assocham

New Delhi, May 6: The domestic biotechnology sector is likely to touch five billion dollar mark by 2009-10 from 1.5 billion dollars during 2005-06 with a consecutive compound annual growth rate (CAGR) of 35.1 per cent in view of its potential growth factor.

''The biotech industry is expected to reach five billion dollars mark by 2010, as agri biotech and bio services with an investments having crossed 360 million dollars in 2005-06, are growing 36 per cent over the previous year,'' according to a paper on 'Biotechnology Future' brought out by industry chamber Assocham.

It also pointed out that India has more than 300 biotech firms focusing on different aspects of the value chain, however, about half of the revenues are concentrated with the top 10 companies.

''Bio pharma in 2005-06, the largest segment of biotech industry grew by 32 per cent to exceed one billion dollars. Exports were at 763 million dollars, and accounted for 52 per cent share of total industry's revenues. Bio pharma accounted for 75 per cent of the total exports and 70 per cent of domestic sales,'' Assocham president Venugopal N Dhoot said.

Referring to investment in domestic biotech industry, he said investment in the sector in India has been booming and might exceed 700 million dollars.

In next 3-4 years, series of joint ventures will come up for application of biotech not only in knowledge based industries but also agriculture, horticulture and viticulture, Mr Dhoot added.

Focus area of certain leading companies in India suggests that vaccines and bio-generics are the common areas of interest among leading biotech companies such as Bharat Biotech, Biocon, Dr Reddy's Lab, Panacea Biotech, Serum Institute, Shanta Biotech, Workhardt and Zydus.

The biotech sector would have the potential to attract funding from international agencies such as World Bank and International Finance Corporation, the Banks, Ventures Capitals, Private Equity Arm, it said, adding that the emerging opportunities in Indian biotech industry will advance in key competitive niches as market trends are catering more growth opportunities.

Indian biotech companies are gearing up to garner outsourced drug manufacturing contracts and companies such as Biocon, DRL, Wockhardt, Panacea Biotech and Shantha Biotechnics are already preparing generic versions of biotech drugs.

The focus on this sector would be primarily in product categories such as-EPO products, Human Insulin, Interferons, G-CSF.

UNI