Mumbai-based biotech companies have managed to topple Bangalore from the top spot among the biotech hubs, reveals a recent survey. Though Bangalore has the consolation of hosting the number one company Biocon, this is definitely a climb down from its much-envied status.

The survey conducted by BioSpectrum, a monthly journal and the Association of Biotechnology-Led Enterprises (ABLE) found that Mumbai-based biotech companies generated Rs 2,400 crore during 2009-10. This is Rs 200 crore more than the revenue clocked in by Bangalore-based biotech firms.

However, Bangalore can take succor from the fact that the top biotech company in terms of revenue earned is Biocon with an aggregate of Rs 1,180 crore for the year 2009-10. Biocon is getting the top slot back after a gap of four years. Last year’s top revenue earner Serum Institute of India based in Pune came second with Rs 850 crore.

Western India continued its domination in biotech sector cornering 46% of national revenue of Rs14,199 crore, while southern India accounted for 39%. However, in the number of companies, southern region emerged winners with a figure of 172, whereas western region has only 137 biotechnology firms.

The survey concludes that the 30% and above growth achieved during the nascent stages of the biotech industry in India is improbable hereafter, as the industry has matured and stabilized. An annual growth of around 20% would be a more realistic figure for the coming years. Last year, the industry grew by 17%, even as it registered a three-fold growth in the last five years.

Industry experts attribute the change of equilibrium to the overwhelming presence of pharma companies in Mumbai. As pharma is the main beneficiary of the biotech industry, it is a natural shift to happen.

Drugs and Pharmaceutical Industry plays a vital role in the economic development of a nation. On a global platform, India is the fourth largest producer of pharmaceuticals in terms of volume and thirteenth in terms of value of production. The annual turnover was around US $ 17 billion (over Rs.68, 000 crores) during 2006-07 and is estimated to grow by over Rs. 1, 00,000 crore in formulations and bulk drug production in 2010. The Indian Pharmaceutical Industry employs around 500,000 people. It’s a highly fragmented market with around 20,000 production units. The industry is capable to meet the country’s demand for every drug. The manufacturing units within the country are meeting about 80% of the country’s drug requirements at a relatively lower cost compared to international brands.

With low cost of production of quality bulk drugs and formulations, low R&D costs, strong scientific, innovative and technical manpower, excellent and world-class national laboratories, efficient and cost effective source for procuring generic drugs, especially the drugs going off patent in the next few years, fast growing biotech industry which has great potential in the international market, the Indian Pharmaceutical Industry has great opportunity for growth. Other than domestic sales, India exports bulk drugs to more than 200 countries around the globe including highly regulated markets of US, Europe, Japan and Australia. India has the largest number of USFDA approved plants for generic manufacture. Indian Pharmaceutical companies have been getting international regulatory approvals for their plants from agencies like USFDA (USA), MHRA (UK), TGA (Australia), MCC (South Africa), Health Canada, etc. which enables them to expand their market to various countries. Some of the leading Indian companies are now seeking Abbreviated New Drug Approvals (ANDAs) in USA in specialized segments like anti infective, cardiovascular and central nervous system groups which will further boost their sales in this segment. Overall, the future of the Indian Pharmaceutical Industry looks extremely positive.