Bio Clusters: The Next Success Story ASSOCHAM 4th Knowledge Millennium Summit Biotechnology

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Bio Clusters The Next Success StoryASSOCHAM
4th Knowledge Millennium SummitBiotechnology
Nanotechnology March 29, 2006, New Delhi

• Deepanwita Chattopadhyay
• Chief Executive Officer
• ICICI Knowledge Park, Hyderabad, India

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The Changing Global Life Science Industry

• Key Issues
• Need to reduce time to market
• Need to sustain profitability
• Disease and healthcare management
• Leading to
• Changing industry structure
• Outsourcing and Partnerships
• Research Alliances
• Mergers Acquisitions
• Emerging service areas

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Indian Response

• Increased focus on RD
• Increased focus on CRAM services (including
  biologics)
• Marketing alliances
• Brand acquisition
• Adoption of product patent regime
• Life Science focused VC funds
• Development of Life Science Clusters with shared
  wet lab infrastructure

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Characteristics of Cluster

• A Cluster can be defined as a geographically
  proximate group of companies and associated
  institutions in a particular field linked by
  commonalities and complementarities
• Where, value of the system as a whole is greater
  than the sum of its parts
• Are usually seeded and evolve organically
• It is observed worldwide that innovation driven
  companies thrive better in clusters

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Elements of Life Science Cluster
Innovative SMEs, Startups Anchor companies
RD Institutions with strong industry linkages
Availability of finance
Support Services Companies vendors,
suppliers, law firms, VCs
Life Science Cluster
Life Science Parks/ Incubators to nurture SMEs
Good common infrastructure
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Leading Life Science Clusters

• According to Minnesota Biomedical and Bioscience
  Network report on leading life science clusters
  as of 2004-05 there are
• 12 Life Science Clusters in EU (Germany, France,
  Switzerland, Belgium, Sweden, Finland)
• 11 in USA
• 14 in Asia-Pacific (including Hyderabad,
  Bangalore and New Delhi from India)
• 4 in UK and Ireland
• 3 in Australia
• 3 in Canada
• 2 in South America
• 1 in Africa
• 1 in Middle East

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Genome Valley Cluster, Hyderabad

• 600 sq. km in three blocks around Hyderabad
  designated as Genome Valley for life sciences
  growth
• Life Sciences RD institutions
• CCMB, IICT, CDFD, NIN, ICRISAT, Univ of Hyderabad
  etc.
• Biopharma Companies
• Shantha Biotechnics, Indian Immunologicals,
  Bharat Biotech, Biological Evans, Krebs
  Biochedmicals, Ocimum Biosolutions, Dr. Reddys
  Laboratories etc.
• Contract Research Organisations
• Vimta labs, Suven Life Sciences, GVK Biosciences,
  Magene Life Sciences etc.
• Hospitals, clinicians involved in RD and
  clinical research
• Dedicated biotech fund - APIDC Venture Capital
• Life Science Parks/ Incubators
• ICICI Knowledge Park, SP Biotech Park, ICRISAT
  Agri-park and Incubator, Incubator at Univ. of
  Hyd.

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Offerings of Life Science Parks

• Generally infrastructure driven shared facility
  offering innovation driven SMEs and startups the
  right location and fulfilling some of the other
  listed needs
• Shared infrastructure admin support lowering
  overheads
• Low capital investment ready to use
  infrastructure
• Network creation and international knowledge flow
• Competitive environment
• Facilitating Technology Transfer, fundraising,
  marketing
• Mentoring for incubatees
• Knowledge building - introducing/ strengthening
  codes and conventions through shared learning
• Can be government driven, private initiative,
  public-private partnership or university led
• Governments role in removing entry barriers
  crucial

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ICICI Knowledge Park

• Wet Lab Research Park
• Mission To create a world-class centre
• for leading-edge business-driven research
• Objective To encourage and nurture
• an environment for innovation
• by developing a life sciences cluster
• Focus areas biotechnology, pharmaceuticals,
  chemistry, new materials and telecommunications
• Partnership between ICICI Bank the State
  Government of Andhra Pradesh (GoAP)
• ICICI Bank investment, management, operations,
  marketing, growth strategy
• GoAP land, policy, regulatory support, common
  infrastructure, tax incentives, single window
  clearance etc.
• Not-for-Profit Company

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Infrastructure, Facilities Services

• Ready-to-use modular wet laboratories
• Core, Shell Utilities and fully furnished
  options
• 84,000 sq ft of lab space in 140,000 sq ft of
  building operational
• Developed space to create custom-built research
  centres, pilot plants etc.
• Incubation Centre for Startups
• Range of facilities and services
• Failsafe power, reliable communication, effluent
  neutralization facility, Virtual Information
  Centre for data access, customs extension office,
  Patent Facilitating Cell, cafeteria, gymnasium,
  conference hall, meeting rooms
• Analytical Lab 300 MHz NMR, LCMS, GC, HPLC etc.
• Business and administrative support
• Conferences Training Workshops

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Growth Strategy
Short term
Mid term
Small mid size Indian companies
Ist/2nd round VC funded
companies
Large companies
Startups

• 22 companies so far, 5 graduated
• Presently 17 companies
• 57 CROs, 43 product/ technology focus
• Focus expected to move more towards innovation

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Innovation Strategy
Ist/2nd Round VC funded companies
Seed Fund, Angel Forum
RD Institute in Public
Health
Incubator
From 2002
From 2006
From 2007
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Incubation Program

• Started operations in January 2006
• Spin offs not common in India key challenge is
  to locate technologies and identify entrepreneurs
  
• Developing a robust mentoring program
• Potential areas of incubation
• Libraries, lead validation optimization
• Diagnostics
• Medical devises
• Drug delivery
• Prevention self care oriented technologies
• Discovery platforms
• Nanotechnology
• Incubatees
• Laurus Laboratories, Biomax Life Sciences,
  Novedis Bioservices

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Research Centre 1

• Vision To use local resources to design, develop
  and deliver solutions to solve local problems in
  Public Health and in the process build deep local
  capabilities in life sciences
• Mission To develop a Global Public Health
  Research Institute in Life Sciences that can
  provide a platform for designing, training,
  developing and delivering solutions to address
  public health concerns in India and the
  developing world

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Research Centre 2

• Objectives
• To undertake collaborative research programs in
  public health with internationally acclaimed
  centres
• To train Indian scientists in problem solving
  skills through collaborative RD projects
• Encourage researchers to become entrepreneurs
  through spin-offs from the projects
• Undertake training and mentoring programs for
  innovative startups
• Location
• ICICI Knowledge Park
• Launch timeline
• End 2006

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Thank You