Sunday, April 30, 2017

Industry: Biotechnology in Nascent Stage

The industry defers from conventional pharmaceuticals is in the use of natural materials for composition of drugs, fmcg and household utilities.  The drugs are manufactured in a living ecosystem comprising of microorganisms, plants and even cells.

Laborious research, innovation are the key factors in reaching the pinnacle that spells success. Since new discoveries of drugs (biopharmaceuticals) and products fuel the demand leading to growth and gains.  Nevertheless the industry being in a nascent stage the market is volatile at times discouraging investors and stakeholders.  The products are expensive and hence invite regulatory pricing at times from the governing bodies bent upon providing cheap medical care to their citizens.  

In order to reach the market the products must pass strict regulatory mechanism comprising of tests and trials. Amny drugs find it difficult to pass through clinical trial stage costing the concerns hefty amount.   

In India the industry has picked up pace and experiencing high YoY growth. India has high number USFDA approved plants. The acronym stands for US Food & Drug Administration a body that regulates edibles and drugs among others.   

India is emerging as the top base in clinical trail and research segment. The country has an advantage in necessary skills,  infrastructure, cost effectiveness and developed R&D base. Though it has a marginal share in the contemporary global biotech industry the projected growth is promising.   

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