Andhra Pradesh, which entered the field of bulk drug manufacture ahead of many other states decades ago, today offers excellent opportunities for fostering the growth of pharma and biotech industries.

The Southern Indian State, the country's fourth and fifth largest in terms of area and population respectively, is one of its major pharma markets. The State's pharmaceutical sector is today internationally known for its skills in chemical synthesis and process engineering on the one hand, and its commitment to the invention of new molecules on the other.

The total Indian pharmaceutical market is estimated to be worth around Rs 32,409 crore, growing at the rate of 15 percent. Of this, Andhra Pradesh contributes 9.5 percent share or Rs 3,079 crores in the country's totals market, is estimated to be growing at the rate of 14 percent.

The State's total market size of the therapeutic segments like Anti-Diabetes (OHA's) is Rs 130 crore, Cardiology: Rs 331 crore, PPI: Rs. 130 crore, Antihistamines: Rs 51 crore, Gynecology (Nutraceuticals like Calcium & Iron Preparations): Rs 94 crore, & Antibiotics groups such as Macrolide Rs. 44 crore.

According to a bi-annual Industry Monitor survey conducted by the Confederation of Indian Industry (CII), the pharmaceutical industries in the State posted an average growth of 15-20 per cent in the second half of 2007-08, compared to the first half of the year. And, the growth prospects of pharmaceutical industry appear bright.

The industry performed well during October 2007-March 2008 with production and sales growing by about 20 per cent over the comparative period in the last fiscal and exports rising by 10-15 percent. The pricing and the profit margins recorded a 2-3 percent growth and hoped that production would grow by 15-20 percent and sales by 5-10 percent.

More than 200 of the country's total 600-odd active pharmaceutical ingredients (API) manufacturing units are located in and around the city of Hyderabad. Andhra Pradesh accounts for more than one-third of India's total bulk drug production. A major share of the bulk drugs produced by AP-based companies finds its way into foreign markets. It has emerged as a key player not only in the export of bulk drugs but in finished formulations, as well.

The bulk of nearly 500 basic drugs produced in India are being manufactured in Andhra Pradesh. This has helped India achieve a turnaround from an importer of bulk drugs to exporter of bulk drugs during the last two decades.

The biotech industry in the State is estimated to be worth $ 111 million, contributing nearly 10 percent of the overall size of the industry in India.

The biotech industry, which has been anchored firmly by the Genome Valley project, has already been a major earner of foreign exchange (Rs 4,914 crore from pharmaceuticals, biotech, chemicals and allied chemicals) for the country.

Government initiatives (March 2008)

• Public private partnerships are important for an industry to progress in a country like India. Realizing this, the National Animal Resource Facility for Biomedical Research, a project of the Indian Council for Medical Research (ICMR), is coming up in Hyderabad at an investment of Rs 500 crore (Rs 250 crore in the first phase).
• The Centre for Stem Cell Sciences is being established by the Centre for Liver Research and Diagnostics with the support of the Government of Andhra Pradesh with an investment of Rs 150 crore.
• A biotechnology incubation centre has been set up with the investment of Rs 30 crore.

The presence of reputed research institutions like the Indian Institute of Chemical Technology (IICT), Centre for Cellular and Molecular Biology (CCMB), National Institute of Nutrition (NIN) and Centre for DNA Fingerprinting and Diagnosis (CDFD) and University of Hyderabad are also adding up to the industry's fascination with Hyderabad. In addition to this, to develop human resources required for the innovation led growth, Indian Institute of Life Sciences (IILS) has been set up at Manikonda village in Hyderabad in collaboration the industry, the Government and research institute.

The National Institute for Pharmaceutical Education and Research (NIPER) and Institute of Life Sciences (lLS) acts as key-drivers for industry in Hyderabad. The institutions play the role of an incubator in participation with the pharmaceutical industry. The total investment in NIPER is Rs 200 crore. Over the next two years, it would offer admissions to about 150 graduates in different disciplines of pharmaceutical sciences.

In addition to this, about 20 major corporate hospitals, well equipped for clinical trials of international standards and varied patient pool would also come handy for biotech and pharma industry growth as they grow in size and global operations.

Investments

In biotech sector, there has been over Rs 700 crore investments (excluding investments in infrastructure). The AP Venture Capital Fund had raised more than Rs 150 crore. The investments in the biopharma sector could cross Rs 1,800 crore during the next three years generating employment opportunity for about 50,000 people.

In the pharma sector, the State capital boasts of over 150 companies, a majority of them being the bulk drug manufacturers. Major companies such as Dr Reddy's, Aurobindo Pharma, Matrix, Divi's etc are spearheading growth and have committed to invest significantly.

Pharma SEZ

The Pharma SEZ covers 300 acres and is a part of the Green Industrial Park proposed over 960 acres at Jedcherla, about 70 km from Hyderabad and about 40 km from the new international airport at Shamshabad. The investment in each SEZ is above Rs 200 crore.

Catering to SMEs

The pharma industry prospects are also attracting foreign agencies which are eager to take part in the development of bulk drug industry. The Bulk Drug Manufacturers Association, Government of Andhra Pradesh and Government of Sweden inked an agreement recently to provide financial and technical aid to Small and Medium Enterprises (SMEs) engaged in bulk drug production.

Similarly GTZ, the German Technical Cooperation, has signed a memorandum of understanding (MoU) with the Drugs & Pharmaceuticals Manufacturers Association (DPMA) in Hyderabad recently. The emphasis would be on helping Small and Medium Enterprises (SMEs) in the pharma sector, which requires various interventions to stay in competition and grow. Through this MoU, the division and the DPMA would work together to extend the services for the pharma cluster in Hyderabad. Further, it also inked a pact with State Bank of Hyderabad. As per the agreement, financial support to the SMEs in the pharma cluster in Hyderabad would be extended.

Major Pharma Companies in the State

Dr Reddy's Laboratories Ltd - India's second-largest pharmaceuticals company, headquartered in Hyderabad manufactures active pharmaceutical ingredients & finished dosage forms and markets them globally. It also conducts basic research in diabetes, cardiovascular etc

Aurobindo Pharma Ltd - Manufacturers of generic pharmaceuticals and active pharmaceutical ingredients based in Hyderabad. The company's products include antibiotics, anti-retrovirals, CVS, CNS, gastroenterologicals and anti-allergics.

Matrix Laboratories Limited - Manufacturers of active pharmaceutical ingredients (APIs) and solid oral dosage forms is based in Secunderabad. The company's products include anti-bacterials, CNG agents, antihistamines, antiasthmatics, antivirals etc. The company is also engaged in contract research & manufacturing.

Divis Laboratories Ltd- Hyderabad-based pharmaceuticals company; makes APIs & intermediates & does contract manufacturing. The company's activities include custom synthesis of APIs, making building blocks for peptides & nucleotides, carotenoids, chiral ligands etc.

Granules India Ltd - Fully integrated manufacturers of pharmaceuticals formulations based in Hyderabad. The company makes PFIs of acetaminophen/ paracetamol, aspirin, ibuprofen, metformin etc. The company is also engaged in contract manufacturing.

Natco Pharma Limited - Pharmaceuticals Company based in Hyderabad and has four manufacturing facilities & employing 1,500 people. It makes branded & generic dosage forms, bulk actives & intermediates. The company is also engaged in contract research & manufacturing.

SMS Pharmaceuticals Ltd - Manufacturer of active pharmaceuticals ingredients and pharmaceutical intermediates in Hyderabad. It is the largest producer of Ranitidine Hcl in the world and has an FDA approved plant, research centre etc

Suven Life Sciences Limited - provides drug discovery & development support services & contract research & manufacturing services to the global life sciences industry. It is based in Hyderabad and its products are intermediates, advanced intermediates, APIs etc

Vivimed Labs Ltd - a pharmaceuticals company based in Hyderabad with plants in Bidar, Hyderabad, Kashipur, Haridwar etc. The focus areas are H&PC actives, contract research & manufacturing & speciality pharmaceuticals.

Avon Organics Limited (AOL) - ISO 9000 certified pharmaceutical firm based in Hyderabad manufactures Diketene & its derivatives, & pharmaceutical, agrochemical, & pigment intermediates. It has chemical factory in Solapur (Maharashtra state)

Gland Pharma Ltd - Manufacturers of APIs & injectable formulations for niche segments such as osteoarthritis, anti-coagulants, gynaecology & ophthalmology is based in Hyderabad. It offers contract manufacturing services for injectables etc

Hindustan Bio Sciences Ltd - Biopharmaceutical firm in Hyderabad engaged in the import and marketing of recombinant DNA products like human erythropoietin, establishment of laboratory for conducting research on monoclonal antibodies, immune modulators & bio pharamaceuticals etc

Jupiter Bioscience Ltd - Specializes in synthesizing peptides, from the basic stage to the finished product and is based in Secunderabad. The company's product portfolio includes speciality & fine chemicals, drug intermediates, bulk drugs & nutraceuticals; The company is also engaged in contract research & Development etc

Krebs Biochemicals & Industries Ltd (KBIL) - Manufacturers of bulk drugs & intermediates based in Hyderabad. Its products include lavastatin, simvastatin, I-ephedrochiloride, l-ephedrine sulphate, vitamin C, calcium sennosides, crude lovastatin etc.

Neuland Laboratories Limited - Manufacturers & exporters of active pharmaceutical ingredients based in Hyderabad exports to 75 countries. Its products include anti-asthmatics, cardiovasculars, anti-bacterials, CNS, anti-fungal, fluoroquinolones, anti-ulcerants & prostaglandins

Prudential Group - Business group in Hyderabad with interests in pharmaceuticals (Prudential Pharmaceuticals Ltd), sugar (Prudential Sugars Corporation Ltd), spinning (Prudential Spinner Ltd) and software (Prudential Infotech Ltd)

Shantha Biotechnics Ltd - Biotechnology company that focuses its R&D efforts on generic biologicals, novel therapeutic antibodies, proteins & vaccines; based in Hyderabad. The company's products are r-DNA hepatitis B vaccine, recombinant interferon Alfa 2b etc; does contract manufacturing.

Aptuit Laurus - provides R&D solutions and makes active pharmaceutical ingredients (APIs) and located in ICICI Knowledge Park, Hyderabad. The company's services include drug product development, analytical & consultancy services, medicinal chemistry services etc

Bharat Biotech International Ltd (BBIL) - Manufacturers of vaccines & biotherapeutics based in Genome Valley, Hyderabad and claims to have the largest plant of its kind in the Asia-Pacific region. Its products include recombinant vaccine for Hepatitis-B etc. The company is also engaged in contract manufacturing.

Biological E. Limited - A pharmaceuticals & biological products company based in Hyderabad.The company's product range includes Beparine, Neo-Hepatex, paediatric vaccines like DPT, TT and ATS, pharmaceutical formulations (asthma, cough management & digestive enzymes, nutraceuticals) etc

Glochem Industries Ltd - a public limited company in Hyderabad engaged in manufacture & marketing of APIs, drug intermediates, OPC & OLED and fine chemicals. It is the biggest manufactures of amlodipine salts in India having units are located in Bollaram & Pharma City (Andhra Pradesh)

Indigene Pharmaceuticals Pvt Ltd - Biopharmaceutical company founded in 2002 in Hyderabad to provide molecular combination based medicines (multiceutics); uses Multiplex Molecular Validation (MMV) technology to produce prescription drugs & healthcare products; has a branch in the US.

Keimed Ltd - A company trading in pharma and hospital consumables based in Hyderabad. It aims to create a unified national healthcare network, GPO and supply chain with the widest range of medical goods and pharma products

SS Organics Ltd - Manufacturers & exporters of bulk drugs & intermediates based in Hyderabad; makes quinolones, antiasthmatics, antiulcerants, anti-inflammatory drugs etc

Tyche Industries - Custom contract/ toll manufacturer of specialty chemicals & intermediates based in Hyderabad; capabilities include alkylation, amidation, asymmetric synthesis, Claisen condensation, Darzens glycidic ester, diazotization, esterification etc

Zenotech Laboratories Limited - Pharmaceutical company in Hyderabad; develops, manufactures & markets generic biopharmaceuticals; has a full fledged research & development facility for generating recombinant proteins for clinical development; also markets generic chemical products.