Biotechnology - Ernst & Young - India

Responding to change

Biotechnology has the potential to alter our lives in a positive way — and by achieving this potential today’s biotechnology firms are delivering new levels of health, prosperity and sustainability across the world. However, with increasing regulation, growing pricing pressures and competition for acquisitions, the sector faces unprecedented challenges.

The global pharmaceutical industry is characterized by declining R&D productivity, exponential rise in reported adverse events and non-decreasing death rates in therapy areas that account for majority of the healthcare spend. At the same time, the slow growth potential of the 1.5 billion people strong mature market is forcing big pharmaceutical companies to look at the next billion consumers in emerging economies like India and China.

Biotechnology as an industry has companies with small size that foster culture of innovation, can deliver personalized medicine and has capabilities that are distributed across the globe and hence offers the proverbial ‘ray of hope’ to the global pharmaceutical industry. All this is leading to the transformation of global business models from Fully integrated Pharmaceutical Companies (FIPCO) to Fully Integrated Pharmaceutical Networks (FIPNO). We believe that innovation, customization and globalization are the key imperatives for the global Biotech industry. The Indian biotechnology sector can leverage on both global and local opportunities by:

• Building a global vision and integrating into the global supply chain through partnerships in R&D, development and manufacturing of bio-similars and offering CRAMS/CSO services.
• Continuously focusing on "Innovation" and "Re-innovation" to build discovery capabilities and meet unmet local needs.
• Expanding outreach within India

The opportunities are accompanied by a set of challenges related to funding, availability of human resource, regulations, industry-academic relationships and expansion of local outreach.

We’ve worked with key players in the biotechnology industry — 14 of the top 20 companies in India as well as the Government — to help address both challenges and opportunities that exist within the sector.
We are committed to helping your business achieve potential by successfully navigating through this dynamic environment and capitalizing on opportunities.