Seven summers before, BT, was yet to make any sizeable dent in business lexicon of wannabe entrepreneurs. Let alone seriously catching the eye of powers that be, BT, acronym for biotech, was not even an happening sector to find mention in the media, while fund rich VCs viewed it with jaundiced eye. The buzz had only begun and arclight turned on the sector thanks to the birth of flagship event — BangaloreBio.
What with IT and its new found status on global marquee, the toast of the nation, BT, poor cousin, simply watched from sidelines biding its time in the sun till that summer of 2001. Patience and perseverance has finally paid off. With likes of Biocon Chairperson Kiran Mazumdar-Shaw, Avasthagen Founder Villoo Morawala Patell, the BT Queens, assiduously championing the cause, the BT buzz has reached a shrill pitch. In the financial year 2006-07, BT revenue of the country crossed $2 billion, a landmark achievement that everyone took note of.
Ernst & Young ranks India third in the Asia Pacific region in biotechnology next to Japan and Korea. On the other, Toronto’s McLaughlin-Rotman Center for Global Health  report describes India’s biotech companies as jumbos waiting to grow. The report, which covers around 21 Indian biotech companies, published in Nature Biotechnology, observes that “at the moment we think of Indian biotech as baby elephant where information technology is adult elephant. But that baby elephant is going to grow. Any biotech or biopharma player in industrialised world that doesn’t pay careful attention to innovation happening in India ... is not taking a very strategic and global look at their business.” The new found optimism about Indian biotech industry is not far to seek nor ill founded. The numbers have it. They speak of success saga the sector has written for itself. These may not be humungous like IT biggies but they do tell a tale of things to come.

Burgeoning industry
The nascent sector has nudged and nursed itself to becoming a booming $2 billion industry. Having logged an impressive Rs 8,300 crore revenues registering 30 per cent growth, BT, is on course to best $5 billion target it has set for itself by Circa 2010. 
It is nothing short of Black Swan effect, says Avasthagen Founder & Managing Director Villoo Morawala-Patell describing the strides BT has witnessed in Bangalore and India as a whole these six to 10 years. “The Black Swan” phenomenon, says Ms Morawala-Patell quoting Nassim Nicholas Taleb’s The Black Swan — The Impact of the Highly Improbable, has resulted in a dramatic shift of thought and way the world works. Indian BT which will play a pivotal role in global R&D in years to come is nothing short of a ‘Black Swan’ effect, she effuses.
In fact, she says, it was almost impossible to believe, a few years ago, we would be participating in the grand R&D global design and be distinct and powerful sought-after player in BT domain.
Global majors are wooing Indian companies like there is never another day. M&As have become new business lingua franca on biotech marquee, investments and joint ventures new gateways for a share of BT pie.
Yes, the IT success story seems to have rubbed off on the emergent sector and ignited the entrepreneurial spirit among many that have led a cocooned existence before. India, according to latest ABLE-BioSpectrum Survey, today boasts of over 340 biotech companies, of which, Karnataka houses 183 and Bangalore 137. In fiscal 2006-2007, 21 companies were set up. Bangalore accounting for nine, while rest of country 12.

Growing investment
From a modest investment of Rs 250 crore in 2000-2001, it has only grown in leaps and bounds during last seven years. If fiscal 2001-02 witnessed unsurmounted 101 per cent growth with Rs 504 crore coming in,  fiscal of 2006-07 recorded 37 per cent growth in investments at Rs 2,270 crore, with Bangalore alone accounting of nearly Rs 1,000 crore. Indian firms, with low wage costs, are increasingly trying to develop new drugs that could compete worldwide.  India could be both potential partner as well as competitor, the Canadian report adds.
India is emerging as fertile ground for manufacturing activities and high-level biotech research initiatives, the impetus coming from several states with biotech policies, bio-clusters and bio-parks.
Over the next five years, fresh investment opportunity in biotechnology from Rs 7 billion to Rs 8 billion, which, in turn, resulting in turnover of Rs 9 billion to Rs 10 billion over next five to seven years, are expected, opine industry watchers.

All about innovation
How will BT maintain its momentum in coming years? Says Ms Mazumdar-Shaw, STPI for BT, IITs and finishing schools to  build necessary skilled manpower can spur the march forward. The industry has to get into more discovery led research wherein companies transition from generics driven initiatives to new molecules. Innovation has to replace generics and services mindset to foster and further sector’s growth.
Echoing similar sentiment, Ms Morawala-Patell observes “if India has to lead and succeed in BT, we must innovate, we need dare-devil entrepreneurs to come together, challenge and break existing dogma and create the next wave of change. We need to drive and support 100 entrepreneurs annually. Innovation concepts are a reality and our opportunity today.”
Ms Mazumdar-Shaw stresses the need for increasingly availability of skilled human resource. It would be appropriate if returning Indian scientists with regulatory expertise are roped in to guide the industry, she says, besides advocating increasing R&D collaborations with US and EU firms.

Preferred hub
Global majors are looking at India as its cost and skill base supports affordable drug development. India is emerging as preferred hub for Indian CROs (Clinical Research Organisations) with an opportunity to access $10 billion global market for clinical trials.
The presence of a large talent pool of medical and para-medical professionals is conducive to build a strong clinical development infrastructure, she states, adding CMOs (contract manufacturing organisations) is another big area.
Stating more and more VCs must get out of their risk-averse mindset and fund innovations, Ms Mazumdar-Shaw says it is only when VCs come in a big way, can Indian BT dream of graduating from contract and clinical research to becoming hub for contracting manufacturing.
“It is an Indian summer of creative opportunity. We have to act. It is time for action, in collective spirit to support creation of sustainable economic and environment prosperity,  and become true leaders of global world in technology and innovation,” observes Ms Morawala-Patell on a high note. Slowly and steadily BT is ascending the acme of its aspirations.
It’s matter of time before BT matches strides with IT and the two, in sync, etch a new story for a resurgent India Inc that is at the global centrestage today.