• 11 July 2011
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BioSuppliers Industry Segment Analysis 2010-11

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BIOSUPPLIERS INDUSTRY
SEGMENT ANALYSIS 2010-11

BioSupplier Industry Registers 18.93% growth Clocks 4,630 crore

Spinco Biotech outpaced Waters India with 82 percent growth to claim the No. 1 spot. This is the first time a distributor company has taken the top slot



The burgeoning biotech industry in India pulled out BioSuppliers from the single digit growth of 7.5 percent in FY 2009-10 to an impressive 18.93 percent in FY 2010-11. The BioSuppliers clocked 4,630 crore in revenue, in FY 2010-11 as against 3,893 crore in 2009-10.

In 2010-11, Spinco Biotech moved up to the top slot in BioSpectrum Top 20 BioSuppliers list. The homegrown, distributor company, Spinco, which was at No. 3 last year, pipped Waters India to claim the No 1 spot. The company achieved this feat by growing over 80 percent, recording 456.58 crore revenue. With this, Spinco has also put in a difference of almost 100 crore between itself and the No. 2 company, Waters India, which is at 362.52 crore.


This is not to say that Waters India is lagging behind in growth initiatives. It too has grown by almost 40 percent. Same is the growth story of the other BioSpectrum Top 20 BioSuppliers of 2010. The average growth of these companies is about 25 percent. Except Genetix Biotech Asia and Toshwin Analytical, all have grown in impressive double digits.

The industry has also been in a flux of reorganization and consolidation. That is why you see some of the big MNCs missing from this year's survey. Essentially, it is the cascade effect of the big-ticket mergers and acquisitions of their respective global entities and some policy issues.

Prominent among these M&A-driven industry changes include the acquisition of Millipore by Merck KGaA. Following the global acquisition of Millipore Corp. by Merck KGaA in 2009, in India, the business of Millipore India was integrated (during the last fiscal) with Merck's life sciences & chemicals business to form a new business division, “Merck Millipore” under Merck's chemical business. Post integration, the amalgamated division's business comprises three units – the biosciences unit, lab solutions unit and process solutions unit.

During the fiscal, Beckman Coulter, was globally acquired by US-based Danaher Corporation for $6.8 billion. Danaher has a product portfolio basket ranging from test & measurement, environmental, dental, life sciences & diagnostics, to industrial technologies. The acquisition of Beckman Coulter will now bolster Danaher's position in the life sciences and diagnostics market due to the former's strong position in both these markets. The acquisition will also see inflow of investments by Danaher into the Beckman Coulter's R&D activities.

Towards the end of 2010, Thermo Fisher Scientific announced the acquisition of Dionex, a manufacturer of ion and liquid chromatography systems, for $2.1 billion. The acquisition provides Thermo Fisher a much stronger platform in chromatography, as well as the ability to effectively provide superior technology work flows when combined with its market leading mass spectrometry offering. Thermo Fisher Scientific has also announced an agreement to acquire Phadia, which focuses on allergy and autoimmune diagnostics, for $3.5 billion. Along with its existing specialty diagnostics offerings, including biomarker test kits from the Brahms acquisition in 2009, this will provide a platform for the company to strengthen its position in the growing specialty diagnostics market, both globally, and in India.

Similarly, Pall Corp acquired MicroReactor Technologies (MRT), a US biotechnology company, that has developed a reliable, easy-to-use and cost-effective miniature bioreactor technology platform. The acquisition of MRT expands Pall's total fluid management (TFM) capabilities in the $1 billion biopharmaceuticals process monitoring and process development market.

Business for most of the biosupplier companies, principals and distributors alike, started picking up around May 2010, with gradual recovery of the market. While a stable inflow of business came from the government sector (mainly R&D institutes), there was a significant rise in investments in high-end equipment and consumables from the private sector, primarily the pharmaceutical and biotechnology companies involved in high-end research activities. Compared to 2009-10, wherein the same companies slashed their R&D investments, this was a welcome sign for most of the biosupplier companies.

The western region of India has a high concentration of supplier companies with most of the MNCs in the country headquartered there. And many pharmaceutical and biotechnology companies in the region switched towards NCE and biosimilar research. This led to a boost in sales for many biosupplier companies. However, due to the slow growth for most of the vaccine companies in India in 2010-11, companies mainly into centrifuges, saw a slight drop in sales.

The region also saw a number of companies roll out their expansion plans. Shimadzu Analytical (India) put in an increased focus on investing in expansion of its infrastructure, customer service and training activities. Since 2006, Shimadzu has doubled its infrastructure in terms of office space. Ditto with investments in customer services. The company is expanding due to increase in demand of products.

Thermo Fisher Scientific has aggressive growth plans in India that involve expanding its manufacturing facilities and existing portfolio. During the year, the company introduced a new line of liquid handling consumables products from its existing manufacturing facility at Nasik. It has also significantly expanded its facility in Ahmedabad, Gujarat, which provides support services to biopharma companies involved in clinical activities. This center in India, will be a crucial hub for all its customers in the Asia Pacific region.

Another highlight of the year was some major acquisitions of biosupplier companies or their assets by the US majors. In November 2010, the New Delhi-based RFCL, a maker of laboratory reagents and consumables as well as products for the medical diagnostics market, was taken over by the US-based Avantor Performance Materials Holdings, involved in manufacturing and marketing high-performance chemistries and materials. The previous owner ICICI Venture Funds Management Company Limited exited the company selling its major stake to Avantor and acquisition was completed in March 2011. With this acquisition, RFCL is expected to benefit from the global experience of Avantor leading to great improvements in its product offerings. At the same time, Avantor can use the RFCL network in India to push its other products in the market. Another Gurgaon-based supplier company LabIndia, a long time distributor, entered into a definitive agreement with its principal company, US-based Life Technologies, that acquired certain assets of the former. The transaction that was initiated on November 1, 2010 is expected to allow Life Technologies to offer a more complete and complementary line of products directly to its customers. The transaction that was completed in the first half of 2011, will also allow Life Technologies to meet the increased demand from its customers, and better serve their needs with superior products, service and customer support.

Another trend that became pronounced is that of biosupplier companies moving into the manufacturing of reagents indigenously. DSS Imagetech has entered into a joint venture with Japanese company Takara Bio, with focus on manufacturing and marketing of research reagents and kits. In 2010, New Delhi-based Genetix Biotech Asia put up a state-of-the-art clean room facility for moulding laboratory plastics in a Special Economic Zone, 250 km north of Delhi. The company also entered into a deal involving development of chemistries for nucleic acid extraction or purification in technical collaboration with a German company. The company is investing heavily into further expansion of R&D laboratory for the development of a number of new products, validation and troubleshooting for its currently imported products.

In the first half of 2010, Sartorius Stedim Biotech (SSB) and Corning announced a co-marketing and branding collaboration. The companies intend to leverage existing synergies to co-market a full range of cell culture products through a combined product catalogue and work together on numerous marketing and sales initiatives. Similarly SSB, and Südpack Medica AG, a manufacturer of innovative packaging solutions that belongs to the Südpack Group, have signed an exclusive cooperation agreement on the development, manufacture and supply of polymer plastic films for the biopharmaceutical market. As part of this deal, Südpack will produce plastic film materials for SSB to be employed in the manufacturing of single-use bags and systems. These single-use bags are primarily utilized by customers in the pharmaceutical industry for cell cultivation, transportation and storage of biopharma liquids.

Similarly, at the beginning of the year 2011, Imperial Life Sciences, which is one of the major distributors in North India, collaborated with market leaders in different segments of the business like Affymetrix which is a market leader in microarrays, NEB which is a market leader in restriction enzymes, Miltenyi Biotech which is the market leader in magnetic cell separations, and Biometra, which provides most reliable thermal cyclers.

The outlook is bright.Top 20 BioSuppliers-2011 (Life Science Business) by Revenue
Rank 2010 Company
 % Change
2010-11
Revenue in Crore
2010-11 2009-10 2008-09 2007-08 2006-07
1 Spinco Biotech 456.58 250.68 225.02 210.27 156.17 82.14
2 Waters India 362.52 262.20 333.70 264.00 213.20 38.26
3 Agilent Technologies* 318.00 255.00 - 277.77 194.00 24.71
4 Becton Dickenson* 207.00 180.00 232.00 178.63 133.90 15.00
5 Shimadzu Analytical 186.00 141.00 154.00 128.00 110.00 31.91
6 Invitrogen* 180.00 150.00 - - - 20.00
7 Sartorius 166.05 95.00 66.00 65.00 52.50 74.79
8 Imperial Life Sciences 135.10 112.85 102.90 88.73 39.25 19.72
9 Sigma Aldrich* 123.00 100.00 - - - 23.00
10 DSS Imagetech 116.84 88.08 78.61 68.04 54.49 32.65
11 RFCL 106.70 93.23 92.21 34.04 22.60 14.45
12 Genetix Biotech Asia 96.52 90.00 80.00 70.00 51.00 7.24
13 Eppendorf India 90.80 73.63 60.14 41.90 29.00 23.32
14 Toshwin Analytical 89.70 85.10 75.90 - - 5.41
15 Towa Optics 84.17 62.50 56.09 46.67 40.85 34.67
16 Advanced Microdevices 68.00 56.00 45.00 37.00 - 21.43
17 MediSpec India 58.38 43.24 30.30 30.00 23.00 35.01
18 HiMedia Laboratories* 56.25 45.00 - 180.00 150.00 25.00
19 Christ Nishotech 35.00 - - - - -
20 Genaxy Scientific 32.50 31.50 29.50 22.50 17.50 3.17
Note: A few new companies made to the list, as some of the big companies did not participate on account of restructuring, M&As and policy related limitations    *BioSpectrum Estimates

Top 10 BioSuppliers-2011 (North)
Rank 2010 Company Revenue in Crore
% Change
2010-11
2010-11 2009-10
1 Agilent Technologies* 318.00 255.00 24.71
2 Becton Dickenson* 207.00 180.00 15.00
3 Imperial Life Sciences 135.10 112.85 19.72
4 DSS Imagetech 116.84 88.08 32.65
5 RFCL 106.70 93.23 14.45
6 Genetix Biotech Asia 96.52 90.00 7.24
7 Towa Optics 84.17 62.50 34.67
8 Advanced Microdevices 68.00 56.00 21.43
9 Genaxy Scientific 32.50 31.50 3.17
10 Premas Biotech 27.70 23.70 16.88
*BioSpectrum estimates
Top 10 BioSuppliers-2011 (South)
Rank 2010 Company Revenue in Crore
% Change
2010-11
2010-11 2009-10
1 Spinco Biotech 456.58 250.68 82.14
2 Waters India 362.52 262.20 38.26
3 Invitrogen* 180.00 140.00 20.00
4 Sartorius 166.05 145.00 74.79
5 Sigma Aldrich* 123.00 100.00 23.00
6 Eppendorf India 90.80 73.63 23.32
7 J H Bio Innovations 11.00 10.90 0.92
8 Techpharma Systems 9.50 6.00 58.33
9 Chromous Biotech 5.50 5.02 9.56
10 Lablinks Biotech 3.60 3.00 20.00
*BioSpectrum estimates

Top 10 BioSuppliers-2011 (West)
Rank 2010 Company Revenue in Crore
% Change
2010-11
2010-11 2009-10
1 Shimadzu Analytical 186.00 141.00 31.91
2 Toshwin Analytical 89.70 85.10 5.41
3 MediSpec India 58.38 43.24 35.01
4 HiMedia Laboratories* 56.25 45.00 25.00
5 Christ Nishotech 35.00 - -
6 Nilsan-Nishotech Systems 30.00 20.00 50.00
7 Anatek Services 30.00 30.00 0.00
8 Pharmalab India 23.60 19.80 19.19
9 REMI Elektrotechnik 22.50 17.60 27.84
10 Syktech Systems 22.50 18.00 25.00
*BioSpectrum estimates

Top 20 BioSuppliers-2011 (Distributors)
Rank 2010 Company Revenue in Crore % Change
2010-11
2010-11 2009-10 2008-09
1 Waters India 362.52 262.20 333.70 38.26
2 Agilent Technologies* 318.00 255.00 - 24.71
3 Becton Dickenson* 207.00 180.00 232.00 15.00
4 Shimadzu Analytical 186.00 141.00 154.00 31.91
5 Invitrogen* 180.00 140.00 - 20.00
6 Sartorius 166.05 145.00 113.00 74.79
7 Sigma Aldrich* 123.00 100.00 - 23.00
8 Eppendorf India 90.80 73.63 60.14 23.32
9 Advanced Microdevices 68.00 56.00 45.00 21.43
10 HiMedia Laboratories* 56.25 45.00 - 25.00
11 Christ Nishotech 35.00 - - -
12 Pharmalab India 23.60 19.80 23.20 19.19
13 REMI Elektrotechnik 22.50 17.60 - 27.84
14 Lonza 22.20 12.20 - 81.97
15 Sisco Research Laboratories 15.00 5.30 5.10 183.02
16 Crane Process Flow Technologies 10.00 6.50 5.50 53.85
17 Anton Paar India* 10.00 - - -
18 Chromous Biotech 5.50 5.02 4.14 9.56
19 Lablinks Biotech 3.60 3.00 2.00 20.00
20 Andel Equipment 3.50 - - -
*BioSpectrum estimates

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