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Global bio-tech firms on India quest

October 16, 2007 02:58 IST

Close on the heels of global pharmaceutical giants, international bio-technology companies also find India an irresistible attraction, though for different reasons.

If the low-cost availability of raw materials was the major reason for global generic pharmaceutical majors such as Teva, Mylan and Actavis to have an Indian base, the emerging opportunities in clinical trials is driving the bio-tech majors towards the country.

Of the top-10 global biotech companies, the biggest two -- Amgen and Biogen -- have already set up wholly owned subsidiaries in the country.

Others, such as Genentech, Serono, Chiron, Gilead, among others already have their presence in India through marketing partners and are in the process of exploring business opportunities in a big way.

For instance, Biogen Idec, the oldest biotech company in the US, announced the setting up of its wholly owned domestic subsidiary Biogen Idec Biotech India last month. Biogen, which had a sales of $2.7 million in 2006, also indicated its commitment of significant investments in the Indian R&D segment.

"The company plans to invest several million dollars in the first year of its operations. An exact figure cannot be quoted as we are yet to decide the scope of operations in the initial year," Alpna Seth, managing director, Biogen India, said.

Elaborating on her plans for India, Seth said that the company had already tied up with major domestic contract research organisations for conducting clinical trials for a medicine for Parkinson.

"We are in the process of initiating two more trials in oncology and neurology indications. All trials are conducted as a part of our global trials," she explained.

While Biogen India will focus on R&D, its commercial presence in the country will continue through its existing marketing partners --Roche and Nicholas Piramal.

The company markets two products --Mapthera and Avonex --through its partners in India. Biogen would also explore the possibilities of research partnerships with Indian companies, she added.

In a similar manner, Amgen, the world's largest bio-technology company, opened a wholly owned subsidiary, Amgen Technology, in Mumbai in March. Amgen has also indicated that its initial focus in India was on clinical development and trials of its drugs.

The company is known to be working with CROs in India and is in the process of forming alliances with domestic companies to support its R&D operations, including pre-clinical development, data management support and statistical programming.

As reported recently, increasing interest among global pharmaceutical majors is evident from the fact that at least a dozen large-scale companies have chosen the country as a safe haven for investment in R&D, since Indian patent laws were amended to allow product patents in the country.

The companies setting up their R&D arms include Allergan, Eisai Pharma, Dupont, Astra Zeneca, Johnson & Johnson, Bristol-Myers Squibb, Pliva, Ratiopharm, Nektar Therapeutics and Sigma Aldrich.

Joe C Mathew in New Delhi