India And Russia To Ink First Biotech Collaboration

Two nations' biotech associations pave way for company partnerships.

MOSCOW - Looking to revitalize its biotech industry, Russia is turning eastward to Asia, as it strengthens ties and enhances information exchanges with India.

With support from both governments, Russian and Indian biotech associations announced their intentions to sign the first collaboration agreement during the EuroAsia Bio conference in Moscow April 14.

The Federation of Asian Biotech Association (FABA) and the Russia Biotechnology Society (RBS) said they are preparing to ink the deal to establish a platform to capitalize on each other's biotech strengths. They also plan to conduct matchmakings among biotech firms and increase the flow of information on research and development.

"We are looking to sign the agreement in a matter of days," disclosed FABA Secretary-general B.S. Bajaj. He said the agreement will serve as a catalyst to bring Asia and Russia closer in biotech cooperation.

As the first step, the two will publish monthly newsletters and start online seminars and presentations linking experts and executives and showcasing companies and industry trends. The first batch of activities is scheduled to take place by the end of May.

RBS VP Igor Krasilnikov said the platform will also function as a database so registered companies will be able to find information about potential partners. Several Indian vaccines have been registered in Russia, and proteins imported from India are being used in drug production in Russia, he said, but there is currently no Indian biotech presence in the country.

India Expands Biotech Frontier

India's biotech sector has seen significant growth in recent years, and the Department of Biotechnology has set aside 30 percent of its annual budget to fund public-private collaborations for new drug development. According to Hyderabad-based FABA, the industry grew 27.5 percent in 2009, against the backdrop of a slow recovery from the global economic downturn. For the past five years, it grew 30 percent on average and reached $2.86 billion in market size.

Two-thirds of Indian biotech firms are involved in biopharmaceuticals, especially in vaccine manufacturing. The largest hepatitis B vaccine producer, India accounts for 32 percent of the world's vaccine output.

With a combination of high-caliber scientists and lower fermentation costs, Indian's biotech business, including contract research organizations, will see "a very high growth in the next two years," said Bajaj.

The industry has also been actively expanding its reach to other Asian countries. FABA now consists of members from 20 countries including China, Japan and South Korea. It hosts the annual BioAsia conference in Hyderabad, one of the largest gatherings for the biotech industry in the region.

Meanwhile, Russia is also looking to India as a partner to accelerate its biotech industry. Last month, RBS President Raif Vasilov attended the BioAsia conference for the first time. The 4,000-member strong association plans on establishing several joint projects with India: establishment of a Russian-Indian scientific and educational center in Russia for biopharmaceuticals, production of vaccines on the basis of Russian technologies, and a stem cell project for repairing eye damage, a technology developed by Indian L.V. Prasa Eye Institute.

Collaboration Among BRIC Countries

Traditionally dominated by European and U.S. companies looking for outsourcing and contract research projects, the global biopharmaceutical scene is quickly expanding to include collaborations among emerging markets due to rapid growth and bigger market share.

According to a recent IMS Health report, pharmaceutical sales in emerging markets including Brazil, Russia, India and China will expand by $90 billion during 2009-2013, contributing 48 percent of annual pharmaceutical market growth in 2013, a jump from 37 percent in 2009 (Also see "Beyond BRIC: 'Pharmerging' Markets Loom If Pharma Is To Expand, IMS Study Says" - Scrip, 17 Mar, 2010.).

Indian biopharma company Avasthagen recently forecast that India and China could see a "Big Bang-like" explosion of biotech- and biosimilar-focused start-ups given the right conditions over the next decade (PharmAsia News, March 26, 2010).

In Russia, the pharma market grew by 13 percent and reached $6.2 billion in 2008. The market has experienced double-digit growth for the past five years.

The current research exchange between India and Russia could be further expanded to include technology transfers and collaborations on intellectual property rights, FABA's Bajaj told conference attendees.

A biotech adviser to the Indian government, D. Natsh said he was optimistic about the first steps toward a full-fledged collaboration with Russia. Due to the similar problems such as access to healthcare, the two governments will likely see more areas on which to collaborate before the next EuroAsia Bio conference in 2012, he said.

[Editor's note: This article appears courtesy of PharmAsiaNews.com, F-D-C Reports' new site for Asian biotech and pharmaceutical news. Register for a 30-day risk free trial.]

- Brian Yang ([email protected])