What has been the demand for biopharmaceutical products in India vis-à-vis developed markets for your products?

The demand for Biopharmaceutical products in India is extremely promising. The biopharmaceutical market amongst the biotechnology gamut accounted for 58% in 2019 & 62% in 2020. In the Indian biotechnology market, Biopharmaceutical, which is the largest segment, accounted for 62% in 2020 and 58% in 2019.

The Indian biologics market is expected to register a CAGR of 22% from 2019 to 2025 to reach US $ 12 billion by 2025. As per the Mordor Intelligence report, Asia Pacific is the fastest-growing market for biopharmaceutical and North America is the largest market. India stands at number three in the Asia Pacific market in terms of contribution to the biopharmaceutical sector.

The developed economies contribute to the majority of growth into the biopharmaceutical segment. The global biopharmaceutical market was valued at approximately US $ 325 billion in 2022 and is expected to witness a revenue of US $ 496 billion in 2026. The developed market remains the major contributor to this number.

Biopharmaceutical products have revolutionized the broad treatment of acute, chronic, hazardous diseases and also imparted health benefits and significantly impacted immune inducer medicines. The demand for biopharmaceuticals has always been an increasing trend which is now doubled with the demand for more innovative products for biologicals like probiotics, enzymes, nutraceuticals. The demand for biosimilars, vaccines and immunomodulators have a great impact in India as well as in developed countries.

Is there wide acceptance for biopharmaceutical products? What should be done to increase its acceptance?

There is significant acceptance of biopharmaceutical products. Even though there are some challenges with regulators and clinical trials the market is observing greater demand as acceptable levels of biopharmaceuticals as an effective alternative of synthetic and hazardous products and their processes is significantly increasing. Cost-effectiveness and safety uses are other attributes contributing to this growth.

Going forward, organized awareness programs to ensure more clarity should prevail from the regulator to end-users. Lower pollution, safety aspects, and minimal risk should be targeted to increase acceptance further.

What has been the growth for you in 2021 and what's your projection for the next year?

In 2021, we registered almost 40% of growth in revenue with substantial growth in probiotics and nutraceuticals. In 2022, we are projecting similar growth as the new line of probiotics and enzymes are closed with trials and are set to get released.

Globally, the animal health industry has been growing considerably. How do you see that growth in the developing markets, especially India?

The Indian veterinary healthcare market is projected to register a CAGR of 7.98% during the forecast period, with a revenue of approximately US $ 1,083.13 million in 2020 and is expected to reach US $ 1,697.15 million by 2026, The species share in the animal healthcare market is 51% of livestock, 35% of poultry, 8% of companion animals, 5% of aqua and rest 1% for other remaining animals, while the global veterinary market is growing at a CAGR of 3.5% and is expected to reach US $ 43.7 billion by 2027

The numbers clearly show that the Indian market is growing at double the global rate which is quite promising. The animal health industry is witnessing a rapid transformation with the inclusion of more nutrition-based products, health care supplements, and discarding a wide range of antibiotics and synthetic APIs. The yield in terms of milk, meat, egg, etc has been growing considerably and backed by different milk unions, research institutes, and academics. Growing research and improving purchasing capabilities of the right product for livestock are major growth impactors.

What are the specific trends in the biopharmaceutical industry?

We see biosimilars, vaccines, and day-to-day health supplements as the immediate product trends for the next couple of years. The increasing exports attracting investment and cost competitiveness effectively support this trend.

What is the size of the biopharmaceutical industry in India?

As per National Biotechnology Strategy Report the Indian Biopharmaceutical Market was US $ 63 billion in the year 2019 and estimated to reach US $ 85 billion and US $ 150 billion in the year 2023 and 2025 respectively.

How much of your turnover do you spend on R&D and do you collaborate with other companies to add value to your product portfolio?

We currently invest around 15 to 20% of our turnover on R&D. We collaborate with accredited academics and well-organized and regulated CROs.

What are your views on the government's PLI scheme and are you planning to take advantage of the scheme?

It's a welcome move by the government to introduce a PLI scheme for the Biopharma Sector.  Lead by our Honourable PM this move has been instrumental in encouraging Biopharma companies to innovate and achieve a remarkable position in the world.

This scheme is introduced post-Covid times and will largely support the MSME sector. MSME sector has been a large contributor in the biopharma sector and has been consistently working towards capacity expansion to meet the global demand. This scheme will empower the MSME sector to invest more into R&D which is the backbone of this sector and at the same time extremely capital intensive, provide cost-effective solutions, invest in technology transfers, and also develop a robust distribution system which includes setting up of cold chains.

The quantum of incentive for Group C where the MSME sector falls is INR 1,750 crores.  This is less than 12% of the total allocation of INR 15,000 crores.  We are positive that this amount will be reconsidered and raised to at least 18% in the coming times. Also, it would have been lucrative if the incentive rates for the MSME sector would have been at par with companies in categories 1 & 2 of the scheme, this would further give a boost to the sector. We are awaiting the scheme guidelines for better clarity.