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New pharma-biotech company formation in India

Nature Biotechnology volume 24, pages 499–501 (2006)Cite this article

To the editor:

Although a great deal is known about the factors influencing the formation of new biotech companies in Western countries, little has been written concerning the stimuli for new biotech ventures in emerging economies. Here, I present an analysis of the major factors underlying the creation of biotech ventures in India in recent years, based on interviews with company principals and the supporting published literature. Nine different mechanisms for venture creation are identified. Of the 36 Indian biotech entities sampled, half originated from existing corporations and half were created from entrepreneurial efforts (Table 1). For the time being, established large local firms and multinational corporations, or individuals with connections to them, appear to contribute the most to biotech venture creation in India. These established companies have deep pockets, pre-existing clients and ready access to international markets and are likely to have the processes and infrastructure to enable biopharmaceutical development.

Table 1 Nine stimuli for foundation of Indian biotech companies.
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Acknowledgements

I thank the respondents who answered queries, B. Gayathri and Meeru Pai for assistance, Philip Anderson for discussion, and Olaf Andersen, Rakesh Basant and Upinder Bhalla for comments. I am grateful for discussions with Kiran Mazumdar-Shaw (CEO, Biocon), who affirmed the classification of specific companies. Financial support from the Wadhwani Foundation, the Government of Karnataka and ICICI Bank and institutional support from N. Yathindra is gratefully acknowledged. In regard to competing financial interests, my employer, the Institute of Bioinformatics and Applied Biotechnology, incubates companies and conducts courses for executives and other employees of the biotech industry for which it charges fees.

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  1. Institute of Bioinformatics and Applied Biotechnology, NEN Wadhwani Center of Excellence in Entrepreneurship Education, G-05, Tech Park Mall, ITPL, Bangalore, 560066, Karnataka, India

    Gayatri Saberwal

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Saberwal, G. New pharma-biotech company formation in India. Nat Biotechnol 24, 499–501 (2006). https://doi.org/10.1038/nbt0506-499b

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