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Page 1: Biotech, Pharmaceuticals and Medical Devices · M&A involving biotech >USD 100 billion Innovation capital exceeds USD 41 billion Capital raised: USD 71 billion The biotech industry

Biotech,

Pharmaceuticals

and Medical

Devices

Page 2: Biotech, Pharmaceuticals and Medical Devices · M&A involving biotech >USD 100 billion Innovation capital exceeds USD 41 billion Capital raised: USD 71 billion The biotech industry

Global Biotech, Pharmaceuticals and Medical Device Industry

Page 3: Biotech, Pharmaceuticals and Medical Devices · M&A involving biotech >USD 100 billion Innovation capital exceeds USD 41 billion Capital raised: USD 71 billion The biotech industry

Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile 3

Biotech Industry - Global Overview

Technology Application Geography

►Fermentation Technology

►Tissue Engineering and Regeneration Technology

►Polymerase Chain Reaction Technology

►Nano biotechnology

►Chromatography

►DNA Sequencing Technology

►Cell based Assay

►Biopharmacy

►Bioservices

►Bioagriculture

►Bio industrial

►North America

►Europe

►Asia Pacific

►Rest of the World

Global Biotechnology market has been segmented by

R&D spend ↑ 16% to >USD 45 billion

M&A involving biotech >USD 100 billion

Innovation capital exceeds USD 41 billion

Capital raised: USD 71 billion

The biotech industry market cap: USD 863 billion in

2016

Revenues reach historic high: USD 132.7 billion

The expected global biotechnology market size: USD

414.5 billion by 2017

12

-15

14

65

18 17

28

1318 16

5

-25

0

25

50

75

100

Revenues Profitability R&D Market capitalization

Pe

rcen

tage

2013 2014 2015

250Year-over-year percentage change in financial indicators (US & Europe)

Source: Biotech Spain, EY Global Biotech Report 2017

Page 4: Biotech, Pharmaceuticals and Medical Devices · M&A involving biotech >USD 100 billion Innovation capital exceeds USD 41 billion Capital raised: USD 71 billion The biotech industry

4

Global Overview

The Value Chain – Global Biotechnology Industry

Total US and European revenues

+650%

Revenues of Top 10 US biotech firms

USD 11.8 billion USD 321 billion

US commercial leaders

717

European commercial leaders

211

Inbound Logistics Marketing & SalesOutbound LogisticsOperations

Stem cells

Serum

Bacteria

Culture

Hospitals

Pharmacy

Clinics

Trade shows

• Research

• Clinical Testing

• FDA review

• Patenting and Manufacturing

Advertisements

►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

Supporting Activities

Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile

2000 versus 2017

Source: www.statista.com

Page 5: Biotech, Pharmaceuticals and Medical Devices · M&A involving biotech >USD 100 billion Innovation capital exceeds USD 41 billion Capital raised: USD 71 billion The biotech industry

Medical Devices - Global Overview

Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile 5

US continues to dominate the global medical devices market, with India and China having the highest

growth rate

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%

Medical Devices Market: Forecast for Growth (USD in billions)

Region 2016 2017 2018 2019 2020

Americas 166.6 176.5 187.3 197.9 208.6

Asia/Pacific 68.7 72.6 77.6 82.9 88.6

Central/Eastern 14.6 15.7 17 18.1 19.1

Middle East/Africa 10 10.8 11.5 12.5 13.2

Western Europe 79.5 85.1 92.6 101.4 106.2

Total 339.5 360.8 386.1 412.8 435.8

Source: Worldwide Medical Devices Forecast to 2020, Espicom Country Reports

127

167

2013 2018

CAGR

+5.6%

6 11

2013 2018

CAGR

+13.2%

3034

2013 2018

CAGR

+2.5%

1740

2013 2018

CAGR

+18.7%

49

2013 2018

CAGR

+20.0%

64 79

2013 2018

CAGR

+4.2%

CAGR – Compound annual growth rate

Medtech market size

(US$ billion)

711

2013 2018

CAGR

+9.1%

Page 6: Biotech, Pharmaceuticals and Medical Devices · M&A involving biotech >USD 100 billion Innovation capital exceeds USD 41 billion Capital raised: USD 71 billion The biotech industry

6

Pharma Industry - Global Overview

• Develop, produce and market drugs for use as

medications

• May deal in generic or brand medications and

medical devices

• Subject to variety of laws and regulations that

govern the patenting, testing, safety, efficacy and

marketing of drugs

• Main goal is to produce drugs that prevent

infections, maintain health and cure diseases

0

500

1000

2006 2011 2016

Pharma market development 2006-16 (USD)

Emerging markets Rest of the world

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

0

500

1000

1500

2010201120122013201420152016201720182019

Global Pharma Segment Sales(USD billions)

Pharmaceutical Sales

Page 7: Biotech, Pharmaceuticals and Medical Devices · M&A involving biotech >USD 100 billion Innovation capital exceeds USD 41 billion Capital raised: USD 71 billion The biotech industry

Biotech, Pharmaceuticals and Medical Device Industry in India

Page 8: Biotech, Pharmaceuticals and Medical Devices · M&A involving biotech >USD 100 billion Innovation capital exceeds USD 41 billion Capital raised: USD 71 billion The biotech industry

India Overview

8

Drugs and Pharmaceuticals is

the among the top sectors is

India attracting highest FDI

Equity Inflows

India is a global leader in production of generic drugs

► Share in global pharmaceutical production is nearly 8%

765.4

880.5

278.6

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2015-16 2016-17 2017-18

FDI Equity Inflows in Drugs and Pharma (in USD million)

► The Biotechnology Industry has grown from

$1.1 billion in 2005

► The bio-pharmaceutical sector accounts for the

largest share of the biotech industry with a

share of 62% of total revenues in 2015.

Indian biotech industry is expected to grow at 30.46 percent CAGR to reach USD

100 billion by 2025

Key Segments

► API Manufacturers/Traders ((Bulk Drugs)

► Formulation Manufacturers

► Contract Research and Manufacturing Services Companies

► Biotechnology Companies

Indian Pharmaceutical sector

accounts for about 2.4 per cent

of the global pharmaceutical

industry in value terms and 10

per cent in volume terms

Investment planned for medical infrastructure by 2024 is USD 200 billion

►Expected to be 3rd largest global generic Active Pharmaceutical Ingredient (API) merchant market

Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile

► Constitutes 70% market share, largest segment of Pharmaceuticals

► India supplies 20% of global generic medicines market exports in terms of volume

Up to June 2017

Source: DIPP 2017

Source: Pharmaceuticals- March 2017. https://www.ibef.org/download/Pharmaceutical-March-2017.pdf

Page 9: Biotech, Pharmaceuticals and Medical Devices · M&A involving biotech >USD 100 billion Innovation capital exceeds USD 41 billion Capital raised: USD 71 billion The biotech industry

Value Chain: Pharma

9

Source: EY Research

A company can operate in any one niche area or be

integrated across the value chain

Drug Discovery

NCE NDDS Reverse engineering

Clinical trials Regulatory filings

Drug development

Manufacturing

Active Ingredients

(API’s/Bulk Drugs)

Additives

(Intermediaries)

Pharmaceutical manufacturing

Formulations Filling

Manufacturing

Packaging

Marketing

Inte

gra

tio

n

Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile

Page 10: Biotech, Pharmaceuticals and Medical Devices · M&A involving biotech >USD 100 billion Innovation capital exceeds USD 41 billion Capital raised: USD 71 billion The biotech industry

10

Pharmaceutical Market

Indian Market

Indian companies,

4.0%

16.027.0

11.7

21.012.9

21.7

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

2015 2020F

Indian Pharma Industry

Domestic formulations Formulation exports

API exports

US$40.6 billion

US$69.7 billion

CAGR: 11.4%

Share of Indian generic exports in global generic market, 2015-16

Source: Pharmexil Annual report, 2015-16

Source: EY Research

4.35

7

1111.6

0

2

4

6

8

10

12

14

FY 13 FY 14 FY 15 FY 16 FY 17 E

Market Size of Biotech Industry (US$ billion)► Industry is growing at a CAGR of 20.33%

► Year on Year growth of 57.14 per cent in FY16

► Total industry size stood at US$ 11 billion by FY16 and

is estimated to have reached US$ 11.6 billion by FY17

► Growth driven by factors such as growing demand,

intensive R&D activities and strong government

initiatives.

► Clinical capabilities are developing fast and the country

is becoming a popular destination for clinical trials,

contract research & manufacturing activities

Biotech Industry

Source: Indian Medical Device Market Outlook, 2017

► 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

Page 11: Biotech, Pharmaceuticals and Medical Devices · M&A involving biotech >USD 100 billion Innovation capital exceeds USD 41 billion Capital raised: USD 71 billion The biotech industry

11

Indian Market

Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile

Medical Devices

► The market stood at around US$ 5.1 Billion

in 2012, is expected to grow at a rate of

around 16% during 2012-2017,

representing one of the fastest growing

medical devices markets in the world

► The sector received a total of INR 8344

Crore (approx. USD 1452 Million) between

2000 and 2016*, reflects the confidence of

global players in the Indian market

► Device market mainly dominated by

imports (almost 70%)

► Significant percentage of buyers of medical

devices are private medical institutions and

hospitals

Source: Indian Medical Device Market Outlook, 2017, Annual Report 2016-17, Ministry of Chemicals & Fertilizers

Key Segment

► Diagnostic imaging is the largest segment

in 2015

► Constitutes USD 1.18 billion in 2015 and

will grow to USD 2.47 billion in 2020

► Other and IV diagnostics comprises

electrical and electronic devices

► Orthopedics & Prosthetics and

Consumables will grow from USD 0.09

billionin 2015 to USD 1.88 billion in 2020

► Dental Products and Patient Aids will grow

from a cumulative USD 0.47 billion in 2015

to USD 1.1 billion in 2020

Market Size

► Market has grown to USD 2.02 billion in

2009 to USD 3.89 billion in 2015 at CAGR

of 15.8%.

►Constitutes nearly 1.7% of the global

device market in 2015

► Indian market contributes to 4% of Indian

healthcare market which is pegged at USD

96.7 billion

22.5 2.8

3.2 3.2 3.43.9

4.55.2

6.1

7

8.2

0

1

2

3

4

5

6

7

8

9

US

D B

illio

n

USD Billion

Growth Factors

► Growing Population

► Ageing Population

► Increasing Disease Burden of Chronic Diseases

► Increasing Health Insurance Penetration

► Growing Medical tourism

► Demand for Healthcare Infrastructure

► Emerging Healthcare Service Formats

► Quality and Accreditation of Hospitals as par with

International Standards

► India is among one of the top 2- global medical device markets and 4th largest in Asia

Page 12: Biotech, Pharmaceuticals and Medical Devices · M&A involving biotech >USD 100 billion Innovation capital exceeds USD 41 billion Capital raised: USD 71 billion The biotech industry

12

Policy Regulations

Key Milestones in Indian Pharma Sector

2010 and beyond

► The NationalPharmaceuticalPricing Policy, 2012(NPPP-2012)

► Essential drug listexpanded

► Patent-relatedrulings againstevergreening, andcompulsorylicensing

► Proposed one-taxregime (GST), to beimplemented by2016

1990-2010

► Market liberalized to promote imports and domestic production

► Patents (Amendment) Act, 2005, leading to adoption of product patents in India; attracts global pharmaceutical community

► 100% FDI allowed in pharmaceutical sector

1970-90

► Indian Patent Act, 1970

► Domestic production and participation increases with increase in production infrastructure

► India began pharmaceutical exports

Before 1970

► Low domestic

production and

market

participation;

market

dominated by

global/foreign

companies

Categories 2015 2016 2017

No.s Proposed

Investment

(INR crores)

No.s Proposed

Investment

(INR crores)

No.s Proposed

Investment

(INR crores)

Medical and Surgical

Instruments

9 200 14 224 3 442

Drugs and Pharma 79 6660 103 13952 71 6055

Source: Department of Industrial Policy and Promotion

Investment Intentions in terms of IEMs Filed, LOI/DILs Issued

Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile

Page 13: Biotech, Pharmaceuticals and Medical Devices · M&A involving biotech >USD 100 billion Innovation capital exceeds USD 41 billion Capital raised: USD 71 billion The biotech industry

Karnataka’s Biotech, Pharmaceuticals and Medical Device Industry

Page 14: Biotech, Pharmaceuticals and Medical Devices · M&A involving biotech >USD 100 billion Innovation capital exceeds USD 41 billion Capital raised: USD 71 billion The biotech industry

Karnataka’s Unique Advantages

Knowledge Hub

for

Biotechnology

14

► 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%)

► 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

Biotech Units in Karnataka

Companies + Start-ups

380 + 194

Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile

Page 15: Biotech, Pharmaceuticals and Medical Devices · M&A involving biotech >USD 100 billion Innovation capital exceeds USD 41 billion Capital raised: USD 71 billion The biotech industry

Karnataka’s

Pharmaceutical Industry

Karnataka’s Unique Advantages

15

► Karnataka contributes around 10% to

the country's revenue in the

pharmaceutical sector.

► The state has exclusive pharma

SEZs in Hassan and Yadgir

► Karnataka ranks 5th in pharmaceutical

exports, contributing 12% to country's

exports.

► A well developed research base with

presence of 35 Clinical Research

Organizations (CROs) and 12

Adverse Drug Reaction Reporting

Centres (ADR) assisting the industry

with clinical trials and research

► Initiatives like Venture Capital fund of

INR 50 crore (USD 1 bn) with 26%

contribution from government,

formation of Karnataka

Pharmaceutical Development Council

and the Vision Group and

promotional activities have been

introduced in the policy.

Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile

* Upto September 2016

Source: Economic Survey of Karnataka 2016-17

► General Dosage Forms: Tablets, capsules,

Parenteral Preparations, liquid orals, API’s

Diagnostic Kits, Dialysis Fluids, Vaccines

► Specialized categories: rDNA Products Soft

gelatin Capsules, Eye Drops, FFS, medical

Devices, cardiac Stents, Drug Eluting Stents,

Orthopedic Implants, Oral; & mechanical

Contraceptives

Karnataka’s Pharma Industry

manufactures Bulk Drugs,

Formulations and Medical devices

2,070

2,531

2,761

2,893

5,077

7,233

8,300

5,896

10,828

5,349

0 2,000 4,000 6,000 8,000 10,000 12,000

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17*

Basic Chemicals, Pharmaceuticals & cosmetics Export Scenario in INR crore

(USD bn)

(82)

(167)

(91)

(128)

(111)

(78)

(45)

(42)

(39)

(32)

Page 16: Biotech, Pharmaceuticals and Medical Devices · M&A involving biotech >USD 100 billion Innovation capital exceeds USD 41 billion Capital raised: USD 71 billion The biotech industry

16

Driving Growth: Infrastructure Support

Agri Biotech Park, Dharwad

Marine Biotech Park,

Mangaluru

Animal Biotech Park, Vivarium,

Bidar

Bangalore Bio Innovation

Centre (BBC)

Nutri/ Nutraceutical and Phyto-

Pharmaceutical Park (N2P2),

Mysore

► Location - Dharwad

► R&D on gene construction. Drought tolerance, Anti phyto pathogenic genes etc.

► Collaborator – UAS

► Location – Mangaluru

► R&D on DNA sequencing, up scaling technology processing waste utilization

► Collaborator – College of Fisheries/ KVAFSU

► Location – Bidar

► R&D in disease diagnosis. Vaccine production, Embryotransfer, Bionformatics, stem cell techniques etc.

► Collaborator – KVAFSU, Bidar

Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile

Bio Innovation

Clusters with

investment of

USD 20 mn

each

► Location – Mysuru

► R&D facility to develop various nutrition and phytopharmaceuticals

► Collaborator – CFTRI

Agri Biotech Park

Animal BT Park

Bangalore Bio Innovation Centre

Marine Biotech Park

N2P2

► Currently operational

► Common Instrumentation facility

► 25 SMEs with access to high tech instrumentationfacility

Page 17: Biotech, Pharmaceuticals and Medical Devices · M&A involving biotech >USD 100 billion Innovation capital exceeds USD 41 billion Capital raised: USD 71 billion The biotech industry

Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile 17

►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)

Driving Growth: Infrastructure Support

Infrastructure Development:

PPP based Pharma SEZs

and Technology Parks that

will include

► 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

Pharmaceutical SEZ in Yadgir

Pharma Park at Mangaluru

► Location – Bidar

► Pharmaceutical Cluster in Kolhar Industrial Area

Pharmaceutical SEZ in Hassan

GSK Pharmaceuticals is

establishing one of the world’s

largest greenfield tablets and

capsules manufacturing facility

at Vemgal in Kolar District,

Karnataka, with an estimated

investment of INR 1,000

crores (USD 15 bn)

Page 18: Biotech, Pharmaceuticals and Medical Devices · M&A involving biotech >USD 100 billion Innovation capital exceeds USD 41 billion Capital raised: USD 71 billion The biotech industry

18Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile

►Ecosprin tablets

►Nizral solution

►Renerve

Leading Pharmaceutical Brands manufactured in Karnataka

►Disprin tablets

►Zental suspension

►Beplex Forte

►Corex cough syrup

►Listrine mouth wash

►Crocin tablets and syrup

►Calpol drops

►Becosules capsules

►Voveran tablets

►Benadryl syrup

Manufacturing in Karnataka

Major Players

Page 19: Biotech, Pharmaceuticals and Medical Devices · M&A involving biotech >USD 100 billion Innovation capital exceeds USD 41 billion Capital raised: USD 71 billion The biotech industry

Manufacturing in Karnataka

Major Players

19Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile

Companies manufacturing Medical Devices in Bengaluru, Karnataka

Companies Products Location

Skanray technologies High frequency x-ray imaging

systems, critical care device

Bengaluru

Healthium Medtech Pvt. Ltd. Suture Products and Consumables Bengaluru,

Tumakuru

BPL Medical Technologies Pvt.

Ltd.

Electrocardiographs, patient

monitors, defibrillators, central

nursing stations, stress test systems,

oxygenators, ultrasound scanners,

colposcopes, foetal monitors, foetal

Doppler and X-Rays

Bengaluru

Forus Health Pvt. Ltd. Designing and service deployment of

healthcare equipment

Bengaluru

2mpower Health Management

Services Pvt. Ltd.

Developing wearable devices Bengaluru

Embrace Innovations Inc. Medical devices like infant warmers,

etc.

Bengaluru

One Breath India Pvt. Ltd. Mechanical ventilator Bengaluru

S3V Technologies Pvt. Ltd. Cardiac stents Mysuru

Browndove Healthcare Pvt. Ltd. Catheters Bengaluru

►GE healthcare

►Medived

►Biget Labs

►Prognosys Medical,

►Opto Circuits

►Biorad Medisys

►Vascular Concepts

►Confident Dental Equipment

Other Players in to manufacturing of Medical Devices in Karnataka

Page 20: Biotech, Pharmaceuticals and Medical Devices · M&A involving biotech >USD 100 billion Innovation capital exceeds USD 41 billion Capital raised: USD 71 billion The biotech industry

Conducive Policy Environment

Karnataka

Biotech Policy

2017-2022

20

Creates specific Infrastructure –focused biotech parks in the area of

agriculture, marine biotech and animal husbandry

1Simplified administrative procedures

and special incentives

2

Increases the quality of human resources by supporting specific

educational and research institutions

3Provides general infrastructure

such as high quality roads, better power supply and airports

4

► Bangalore Bio Innovation centre with 25

fully furnished suites providing laboratory

facility to promote innovation driven R&D

start-ups

► Biotech parks-Bengaluru Helix-setup with

institutional zone, research and R&D

institutions and Bio-cluster

►Single-Window clearance mechanism

► Vision group on Biotechnology

► Incentives for Patent registration and

green initiatives

► Support for Standardization certification

► Anchor Unit Subsidy for first two

manufacturing enterprises

► Incentives for Export Oriented MSME,

Large, and Mega Project, like 100%

exemption from payment of Entry Tax

► Institutions such as IAB, IBAB, CHG and

finishing schools

► Fostering entrepreneurship and

development of new products – Med

Tech, Clean Tech, nutraceutiucals,

pharmaceuticals etc.

► Specific fiscal incentives to develop

industrial infrastructure

► Land facilitation for field trials and

experiments by agro-biotech enterprises

and scientists

Other Initiatives5

► Set up VCF with private participation-

called the KBio- VEN Fund of Rs. 50

crores

► Biotech policy 2017-22 focuses on 10

emerging areas in the Biotechnology

field

Integrated Policy Approach6

► Incentives for Biotech Start-ups under

Karnataka Startup Policy 2015-20

► Fiscal incentives and concessions

offered under the prevailing Karnataka

Industrial Policy to the biotechnology

industries and R&D centres

Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile

Page 21: Biotech, Pharmaceuticals and Medical Devices · M&A involving biotech >USD 100 billion Innovation capital exceeds USD 41 billion Capital raised: USD 71 billion The biotech industry

Conducive Policy Environment

Integrated Policy

Approach

Karnataka Industrial

Policy 2014-19

21

Infra

stru

ctu

re

► Development of Pharmaceutical parks in potential locations of Karnataka through PPP

► Setting up of SEZs would be encouraged under the provisions in the SEZ policy

► Setting up R&D institutions to leverage the strengths of the state

► Supportive fiscal incentives and grants would be provided for promoting R&D activities

R&

D► Focus on Mega Pharmaceutical projects

► Package of Incentives & concessions offered for Investments (Industrial Policy 2014-19) like tax benefits, stamp duty exemption, green initiative benefits etc.

Ince

ntiv

es

Adm

inis

trativ

e

Measure

s

► Formation of the Karnataka Pharmaceutical Development Council and also a Vision group

► Support for promotional activities, road shows and sector specific events

Committee to promote private

pharma sector

An Inter-Ministerial coordination

Committee to review the constraints and

issues faced by the pharma industry and

facilitate resolution of these periodically

pharma firms currently have to approach

Drug Control Department for Licensing

approvals

Venture Capital Fund

Fund of INR 50 Crore with contribution of

26% from Government

Initiatives such as quick and quality

service from Drug Control Department

facilitating industries

Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile

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

Page 22: Biotech, Pharmaceuticals and Medical Devices · M&A involving biotech >USD 100 billion Innovation capital exceeds USD 41 billion Capital raised: USD 71 billion The biotech industry

Enhancing Karnataka’s Skill : Biotechnology

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

22

Biotechnology Finishing Schools

(BTFS)

Centre for Human Genetics

Institute of Bioinformatics and

Applied Biotechnology (IBAB)

► 12 schools have been established for Post Graduate

Diploma (8 BT Domains)

► Capacity for 300 students per year

► Conduct courses/workshops for scientists & clinicians

► Address lacunae in research and education including

rare genetic disorders

► Centre of Excellence functioning since 2001 offering

courses for PG (300 students), MSc (80 students),

PhD (4-10 pursuing) and modular courses

Leading Institutions in Karnataka

► Indian Institute of Science, Bengaluru

► National Centre for Biological

Sciences, Bengaluru

► Jawaharlal Nehru Centre for Advanced

Scientific Research, Bengaluru

► National Institute of Mental Health and

Neurosciences, Bengaluru

► Indian Institute of Horticulture

Research, Bengaluru

► Karnataka Veterinary, Animal &

Fisheries Science, University, Bidar

► University of Agriculture Sciences-

Bengaluru, Dharwad, Raichur,

Shivamogga

► Institute for Agriculture Biotechnology,

Dharwad

► Central Food Technological Research

Institute, Mysuru

Resulting in

Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile

An average of 65% of job placements of BTFSstudents thus far across 5 years

Page 23: Biotech, Pharmaceuticals and Medical Devices · M&A involving biotech >USD 100 billion Innovation capital exceeds USD 41 billion Capital raised: USD 71 billion The biotech industry

61 82

120

► Pharmacy Colleges providing B.Pharmdegree to 1270 students in the year 2016-17

► Post GraduationEnrolment capacity for M.D. (Pharmacology) in 2016-17

► Pharmacists trained under Integrated Disease Surveillance Project (IDSP) in 2015-16

50

► Research base with presence of CROs assisting industry with clinical research and trials

23

Enhancing Karnataka’s Skill: Pharma

Large number of

medical education

institutions creating

an ecosystem for

collaboration on

product

development and

trials

Type of institutions Number Enrolments

(Government)

Medical colleges (MBBS) 42 2,668

Ayurvedic Colleges 63 936

Homeopathic Colleges (BHMS) 11 253

Unani Colleges 04 81

Naturopathy & Yogic Services (BNYS) 04 79

Dental Colleges (BDS) 39 1,216

Pharmacy Colleges (B.Pharm) 61 1270

Farm Science 39 2,645

Source: Karnataka Examinations Authority 2017: http://kea.kar.nic.in/

Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile

Source: Economic Survey of Karnataka 2016-17

Page 24: Biotech, Pharmaceuticals and Medical Devices · M&A involving biotech >USD 100 billion Innovation capital exceeds USD 41 billion Capital raised: USD 71 billion The biotech industry

AgriProducts

Pharma

Environment

Energy

Medical Devices

24Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile

Area of Investments

► Biotech Crops (Pulses, Cereals,

Plantation crops)

► Aerobic Rice (Water saving)

► Sugarcane Alternative products

► Bioremediation

► Conversion of waste to useful

products

► Biofuels

► Marine Biology

► Vaccine Technologies

► Drug discovery

► Synthetic Biology

► Generic Drug

Manufacturing

1,914

1,550

0

500

1,000

1,500

2,000

2,500

Investment (in INR Cr) Employment (in Nos.)

SHLCC Approved Projects from 2013-14 to 2016-17

2,201.21

6,369

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Investment (in INR Cr) Employment (in Nos.)

SLSWCC Approved Projects from 2013-14 to 2016-17

► Surgical, Cardiac Stents,

Catheters, Renal Tubes,

Dental, orthopaedic,

ophthalmologic, laboratory

instruments, etc.

Page 25: Biotech, Pharmaceuticals and Medical Devices · M&A involving biotech >USD 100 billion Innovation capital exceeds USD 41 billion Capital raised: USD 71 billion The biotech industry

Investment Opportunities

25Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile

► An annual incentive up to 20% of expenditure

towards clinical trials for bio availability and

bio-equivalence subject to a maximum of INR

100 lakh per clinical trial under Industrial Policy

2014-19

► Nutraceutical and Phyto pharmaceutical

Incubation Centre and Common

Instrumentation Facility, stage –II is under

development to provide space for more

incubates

► Special Incentives to Medical Devices Sector

to encourage Establishment of Medical

Devices Park

► Showcasing Karnataka Medical Devices

Sector: A grant up to 50% of the cost subject

to a maximum of INR 300 lakh to organize the

biennial event of trade show and conferences

► Initiate establishment of Incubation Centre

cum Common Instrumentation Facility to

promote Marine/Aqua Biotech

► Expert Group on Agriculture Biotechnology

(EGAB) constituted as a sub group of VGBT

(Vision Group on Biotechnology)

► Sanctioned INR 8.5 crore spread over 3

years to University of Horticulture Sciences,

Bagalkote, to carry out R&D on Tomato,

Banana, Pomegranate and Garcinia; to

develop resistance to diseases and

establishment of germplasm / gene banks

► A grant of INR 6.5 crore sanctioned has been

completely released to UAS Dharwad

► Karnataka Biotechnology & Information

Technology Services (KBITS) established in

2000 facilitates Biotechnology Industries in

the state and administers incentives and

concessions to Biotechnology companies

► Karnataka Drugs and Pharmaceuticals

Manufacturers’ Association insists on 100%

implementation of Pharma Policy and Parks

► Karnataka Pharmaceutical Development Cell

(KPDC) to serve as a dedicated single point

contact for pharmaceutical sector

Investment Facilitation

Page 26: Biotech, Pharmaceuticals and Medical Devices · M&A involving biotech >USD 100 billion Innovation capital exceeds USD 41 billion Capital raised: USD 71 billion The biotech industry

Contact Details

Additional Chief Secretary to

Govt. of Karnataka, Health &

Family Welfare ServicesAdditional Chief Secretary to Govt. of

Karnataka, Health & Family Welfare

Services, #105,

I Floor, Vikas Soudha,

Bangalore - 560 001

Phone: 91-80-2225 5324

Fax: 91-80-2235 3916

Email: [email protected]

Principal Secretary to

Government,

Dept. of Information

Technology, Biotechnology

and Science & technologyVI Floor, 5th Stage, M.S.Building,

Ambedkar Veedhi,

Bengaluru - 560 001

Tel: 91-80-2228 0562

Fax: 91-80-2228 8340

Email: [email protected]

26

Commissioner for Industrial

Development and

Director of Industries & Commerce2nd Floor, Khanija Bhavan, No.49,Race Course

Road, Bangaluru 560 001

Ph : 91-80-2238 6796,

Fax : 91-80-2238 9909

Email: [email protected]

Vendor Development and Investor Summit 2017- Biotech, Pharmaceuticals and Medical Devices - Sector Profile

Managing Director

Karnataka Udyog Mitra3rd Floor, East Wing, Khanija Bhavan,

Race Course Road,

Bengaluru – 560 001

Phone : 91-80-2228 2392

Email: [email protected]

Chief Executive Officer

Invest Karnataka Forum3rd Floor, East Wing, Khanija Bhavan,

Race Course Road,

Bengaluru – 560 001

Phone : 91-80-2228 2392

Email: [email protected]