Date:11/02/2006 URL: http://www.thehindu.com/2006/02/11/stories/2006021105710400.htm

Andhra Pradesh - Hyderabad

Biotech companies see only hype not hope

M. Rajeev

Government's claim on infrastructure facilities

Entrepreneurs who invested in pharma parks unhappy with the existing facilities
Stress on proper knowledge for administration

Need for master plan to get accelerated growth underlined

HYDERABAD : The claims of the Government on giving boost to biotech and pharma industries notwithstanding, entrepreneurs, who invested in pharma parks, appear to be dissatisfied with the `inadequate' infrastructure facilities.

While prospective entrepreneurs in pharma and biotech sectors are looking for `readymade' infrastructure, if not effective incubating facilities, there is none visible here, they say. "There is nothing here and what we see is only hype," says Krishan Karla of the US-based BioGenex.

Speaking to The Hindu on the sidelines of the plenary sessions of Bio Asia, Mr. Karla said investors were seeking basic infrastructure like laboratories, connectivity & transport and commercial real estate to nurture the biotech units and "you can't make them work for basic amenities." "The biotech parks here have none of the facilities like housing, restaurants and other facilities," he said.

Dr. Karla was also surprised at the "lack of proper knowledge" for the administration about the entire scheme of things that needs to be looked into for promoting biotech and pharma industries. "We had the Secretary of the Union Biotechnology Department and eight others at the State level yesterday. But they are still not aware of what exactly should be done to promote the sector," he said.

Earlier, addressing a session on "Nurturing Entrepreneurship in Biotechnology", Dr. Karla said there was a need for macro level master plan from community to national level for ensuring accelerated growth of biotech industry in India.

Given the fact that there was an acute shortage of incubator facilities, the policies governing the sector should be rationalised while the cost and barriers to entry into the segment need to be reduced.

Anish Bhatnagar, vice-president, clinical development of Titan Pharmaceuticals Inc, US, said that though there were revenues in basic clinical research facility in India, they were very small while the venture funding was wholly focussed on low risk ventures. We rarely see funding coming for start up ventures," he said.