German, UK-based biotech cos eye India for outsourcing

BANGALORE: As part of the cost-cutting measures to combat global recession, German and UK-based biotech companies plan to outsource more work,
transfer technology and tap India’s burgeoning biotechnology market.
“We will see more collaborations in industrial enzyme technology, bio-food technology, renewable energies and regenerative medicine. Several companies plan to bring in over $100 million investments to India this year and set up production facilities here,” said Martin Pohle, consultant Bio Mitteldeutschland Gmbh, which works towards strengthening the BT industry in Anhalt, Central Germany. The Indian bio-tech industry is poised to grow by 18% in FY09 to Rs 12,137 crore from Rs 10,274 crore in FY08, said CMD of Biocon Kiran Mazumdar Shaw. This year, more partnerships are likely to be struck between Western and Indian companies, she said. Germany’s Biobase Gmbh, which provides biological databanks, will be bringing more work to India and expand its infrastructure. “We have more than 50% cost advantage in India, and now only 10-15% of our work is done in Germany, 85% of the work is done in India,” said Biobase CEO, Michael Tysiak. Companies like UK-based Oxygen Healthcare (O2H) are setting up new labs in Ahmedabad SEZ. It will source molecules from India because of the cost advantage here and market them in Japan, US and Europe. These molecules will be used for drug discovery procedures for diseases such as cancer. “The Indian base makes us competitive. We are able to deliver the same kind of quality as in the UK and US, where you pay three times more compared to India,” said Ekta Ahuja, manager business development, O2H. Britian’s Institute of Pharmaceutical Innovations (IPI) is looking at a JV with Indian companies and will transfer technology through its two spin-outs — Crystec Pharma and Lena Naoceutics. “With Crystec, we have a plant in China and now we want to set up a plant in India. We will collaborate with Indian partners through Lenananoceutics. A total investment of £20 million is required for these ventures,” said Anant Paradkar, professor at IPI.