CROs take the growth highway
• BioServices registers 28%
growth with revenue of Rs 2,639 crore
• Top 10 CROs make up 60% of the total segment revenue
BioServices segment registered a growth of 28 percent in 2009-10 over
last year's total segment revenue of Rs 2,062 crore. The 3 percent drop
in growth from a 31 percent of 2008-09 was primarily due the currency
fluctuations in FY 2009-10. Exports continue to dominate this segment
accounting for over 90 percent of the total revenues.
In this segment, accounting for 19 percent of overall revenue,
companies such as Lambda Therapeutic Research, MaxNeeman and Anthem
Biosciences have done exceedingly well in FY 2009-10 with Lambda and
MaxNeeman growing well over 100 percent and Anthem Biosciences at over
60 percent. The Top 10 CROs make up 60 percent of the total segment
revenue of Rs 2,639 crore.
In the last three-to-five years, many companies have set up contract
research and clinical research services operations in India.
Considering the potential opportunity and fast clip market growth, the
number of companies in this segment will continue to grow faster than
the industry average in the next two years as well.
The segment is growing on account of the growing requirements of the
multinational companies that are looking at India as an outsourcing
destination with high-skill, low cost advantage. Besides, due to
business model evolutions driven by market forces, even the domestic
companies are outsourcing various portions of the drug discovery chain.
However, the competition in the segment is growing to be intense
impacting bottomlines adversely. The fact that all new companies are
now born global is adding to this competition. SIRO Clinpharm having
presence in India, Western & Central Eastern Europe, and US has now
entered into an alliance with DreamCIS Inc., a leading CRO based out of
Seoul in South Korea. The company has also signed an agreement with
Virginia Contract Research Organization (VCRO), a Taiwan-based CRO to
offer a range of services to Taiwan companies. And, it is not just Asia
Pacific market that the company is looking at. SIRO is expanding
operations in the developed markets like USA and Europe as well. It has
entered an alliance with Advanced Clinical Trial Solutions (ACT
Solutions), Flemington, NJ, USA.
Syngene International, a subsidiary of Biocon Group, has partnered with
Sapient Discovery, a US-based biotechnology company. Both the companies
intend to provide a highly integrated platform for structure-based drug
discovery. It also signed a pact with another US company, Endo Pharma,
to jointly discover and develop novel biological drug molecules to
Bangalore-based Ecron Acunova has tied-up with a Japanese CRO and
expects this alliance to trigger a trend and set off 40-50 clinical
trials between India and Japan in the next two-to-three years. Japan is
the second biggest pharma market after the US. This apart, the
Indo-German clinical research major with its established presence in
India and Europe is scouting for more market share in clinical research
in these countries and other parts of the globe.
Veeda Clinical Research, which has completed five years of existence in
January 2010, has opened its office in South East Asia by signing a
collaborative agreement with the Malaysian Ministry Health to open a
Phase I and Early Clinical Development Unit in the Ampang Hospital in
India services industry is, decidedly, set to take the collaboration
||Lambda Therapeutic research*
||Max Neeman International
|All figures in
Crore unless indicated otherwise