Agribiotech R&D in Private sector

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Accelerating Agribiotech R&D in Private sector
Public Policy and Partnerships


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Agribiotech R&D in Private sector

  1. 1. Accelerating Agribiotech R&D in Private sector Public Policy and Partnerships S.R.Rao Department of Biotechnology Government of India E. Mail: [email_address]
  2. 2. Today,s topics
  3. 3. Size of Private Seed Sector in India Sources : Seed Industry in AP- A profile, 2004 06/18/11 S.No No of Companies Size of companies Sales turn over (in million Rs) 1 40 Large involved in R&D >200 2 Small number Medium 200 3 Large number Local player and unorganized <20 Can we learn from current status?
  4. 4. Source: - International Seed federation/www.worldseed.org/2008 06/18/11 Domestic market size of seeds in different countries
  5. 5. Basic R&D Applied R&D IARC More than 50 firms MNCs Foundation Seed ICAR SAUs, Res St. NSP 50 firms Commercial Seed Production NSC, 13SSC SFSC Contract farming More 400 Seed Companies Seed Distribution & Sales Govt. Coops Farmers Thousand of Dealers at district Distribution Seed Production Public Private NGO Sources: Pray et al, 1990. Figure SAU/State/Research Regional seed production/ contact farming 06/18/11 Conventional breeding , seed production and distributionssystem is shifting and getting complex
  6. 6. Increasing complexity Rising cost Investment ---Gradient of Biotechnologies Modern biotechnology Genomics Genetic engineering of animals Genetic engineering of plants Recombinant DNA technology Clonal and polyclonal antibody production Embryo transfer in animals Plant tissue culture Biological nitrogen fixation Microbial fermentation Traditional biotechnology Technological complexities are increasing
  7. 8. Risk profiling has become important in technology led market creation Risk Core technology interest Perceived risk factors Low CRO, CMO & Diagnostics (Services Business) Relatively low risk companies Med. Enzymes and Biogenerics Medium risk High Drug discovery & delivery technologies / Bio-agri/ Bioinformatics / Biomass / Biofuels Perceived as high risk, nascent business models
  8. 9. World’s Top Ten Seed Companies doing business in India S.No Seed companies Seed sale (US) million s, 2004 Seed sale (US) million s, 1998 1 Monsanto (USA) 2,803 1,800 2 Dupont (USA) 2,600 1,835 3 Syngenta (Novartis)(SWD) 1,239 1,000 4 Groupe Limagrain(France) 1,044 733 5 KWs AG (Germany) 622 370 6 Land O’ lakes (USA) 538 370 7 Sakata (Japan) 416 349 8 Bayer crop science (Germany) 387 - 9 Taikii(Japan) 366 300 10 DLF Trifolium (Denmak) 320 -
  9. 10. Foreign R&D Centres <ul><li>Foreign Centers in Seed Research </li></ul><ul><li>33 companies having R&D centres in sectors . </li></ul><ul><ul><li>Genetic diversity and good mix of heterogeneous market segments. </li></ul></ul><ul><ul><li>Good mix heterogamous market segment. </li></ul></ul><ul><ul><li>Export potential in tropical to subtropical to some extent temperate. </li></ul></ul><ul><ul><li>changes in the stock of knowledge generate new techno-economic opportunities that stimulate and encourage the private sector to undertake developmental research </li></ul></ul><ul><ul><li>Regulations , IPR </li></ul></ul>
  10. 11. Lessons from current status <ul><li>The World of agriculture is undergoing major changes </li></ul><ul><li>Biotechnology Traits </li></ul><ul><li>Value Added Crops </li></ul><ul><li>Value transfer between agrochemicals and seeds </li></ul><ul><li>Global Consolidation of industry </li></ul><ul><li>IP protection laws </li></ul><ul><li>Technologies that are likely to come to India in the next ten years </li></ul><ul><li>Herbicide Tolerance </li></ul><ul><li>Drought Tolerance </li></ul><ul><li>Nitrogen Use Efficiency </li></ul><ul><li>Healthy Oils </li></ul><ul><li>Higher Yield </li></ul><ul><li>Feed Nutrition enhancement </li></ul>
  11. 12. Lessons from current status Value Transfer into Seed Adventa 2008 SEEDS Human Health Water & Soil Nutrients Crop Chemicals Animal Nutrition
  12. 13. Lessons from current status Challenges Adventa 2008
  13. 14. Innovation to Commercialization- stages Birth Phase Idea Proof of Concept Prototype / Working Model Pilot plant Stage /pre-Commercial Trials/ Validation Commercial Product/ Process Seed Financing Venture Capital Government Sources adequate … ?? <ul><li>Private Equity </li></ul><ul><li>Venture Capital </li></ul><ul><li>Government Sources </li></ul><ul><li>TDDP (PATSER) </li></ul><ul><li>PRDSF </li></ul><ul><li>NMITLI </li></ul><ul><li>Private Equity </li></ul><ul><li>Venture Capital </li></ul><ul><li>Product Licensing / Marketing </li></ul><ul><li>Government Sources </li></ul><ul><li>TDB </li></ul><ul><li>NMITLI </li></ul><ul><li>PRDSF </li></ul>Ignition funds for Scientist innovators Survival Phase Growth Phase Does current PPP schemes address the needs?
  14. 15. Commercial potential 1. Start-up Prototype 2. Early Stage/ patenting 3. Develop- ment and trails 4. Expansion & Growth Grants 3 F’s, joint research Informal VC (Business Angels) & seed corn, some formal VC, corporate venturing VC and corporate venturing IPO and /or Buyout A biotechnology finance life cycle SBIRI NIMTLI ; TDB; PATSAR,
  15. 16. Small Business Innovation Research Initiative (SBIRI) <ul><li>To support early stage, </li></ul><ul><li>pre-proof-of-concept research </li></ul><ul><li>To take up leads towards commercialization </li></ul><ul><li>MISSION </li></ul><ul><li>Nurture innovative and emerging technologies / entrepreneurs. </li></ul><ul><li>Modified SBIRI is under discussion </li></ul>
  16. 17. Proposals received
  17. 18. Small Business Innovation Research Initiative Projects Medical Agriculture Industrial Processes/ Enzymes Others Advertise 6 times 361 proposals received 41 proposals recommended 32 proposals supported 9 projects in pipeline Public Private Partnerships
  18. 19. Agriculture Sector <ul><li>Bejo Sheetal Seeds Pvt. Ltd., Jalna </li></ul><ul><li>Bioseed Research India Pvt. Ltd., Hyderabad in collaboration with Shriram bioseed Genetic India Ltd., Hyderabad and International Centre for Genetic Engineering and Biotechnology, New Delhi (2 Projects) </li></ul><ul><li>Labland Biotech Private Ltd., Mysore </li></ul><ul><li>Mahyco research Center, Jalna </li></ul><ul><li>Multiplex Bio-Tech Pvt. Ltd., Bangaolore </li></ul><ul><li>Rasi Seeds Pvt. Ltd., in collaboration with Tamil Nadu Agricultural University (TNAU), Coimbatore. </li></ul><ul><li>Millenium Exports, Chennai </li></ul><ul><li>Oriental Aquamarine Biotech India Pvt. Ltd., Coimbatore in collaboration with National Centre for Aquatic Animal Health, Cochin University of Science and Technology, Kochi </li></ul><ul><li>Pelican Biotech and Chemical Labs, Alapuzha Kerala </li></ul><ul><li>Poseidon Biotech, Chennai </li></ul>SBIRI SANCTIONED PROJECTS SECTOR-WISE
  19. 20. Biotechnology Industry Research Assistance Council (BIRAC)- End-to-end Services Started as a pilot project and EFC ready for circulation under I&M sector
  20. 21. Biotechnology Parks and Incubators <ul><li>Biotechnology Park at Hyderabad – operational contract given to </li></ul><ul><li>M/s Allexendria </li></ul><ul><li>Promoter for Food Biotech Park at Mohali selected </li></ul><ul><li>Himachal Pradesh Biotechnology Park is negotiating with Nano- </li></ul><ul><li>science company for design </li></ul><ul><li>IIT Guwahati biotech incubator is progressing well </li></ul><ul><li>Seed money provided for Orissa Biotechnology Park </li></ul><ul><li>TICEL Park in Chennai supported for expansion of incubation space </li></ul><ul><li>Incubator in Bangalore in progress </li></ul><ul><li>In addition, </li></ul><ul><li>Technology platform for idea generation in collaboration with FICCI established with three platforms already operational in </li></ul><ul><ul><li>Agriculture Biotechnology </li></ul></ul><ul><ul><li>Implants and devices </li></ul></ul><ul><ul><li>Biopharmaceuticals </li></ul></ul>NOT many takers from agribiotech
  21. 22. NMITLI seeks to catalyze innovation centered scientific and technological developments as a vehicle to attain for Indian industry a global leadership position, in selected niche areas in a true ‘Team India’ spirit, by synergising the best competencies of publicly funded R&D institutions, academia and private industry. THE OBJECTIVE More Public –Private Partnerships Example: New Millennium Indian Technology Leadership Initiative
  22. 23. SPREAD OF PROJECTS
  23. 24. Biotechnology Industry Partnership Programme (BIPP ) EFC ready for circulation. Total cost Rs 350 crores <ul><li>Partnership focused on cost sharing </li></ul><ul><li>Advanced and new technologies with futuristic potential </li></ul><ul><li>Major un-met national technology needs </li></ul><ul><li>IP will belong to industry but royalties (3-7 per cent) to public scientist and funding agencies </li></ul><ul><li>Cost sharing with DBT contribution 30-50 per cent of project cost </li></ul><ul><li>All companies eligible </li></ul>
  24. 25. Round One – 9 projects technically cleared <ul><ul><li>An insight: </li></ul></ul><ul><ul><li>Phase-II and phase-III trials of </li></ul></ul><ul><ul><li>discovery molecule for heart failure complicated with diabetes mellitus (Torrent) </li></ul></ul><ul><ul><li>Oral insulin for type 2 diabetes (Biocon) </li></ul></ul><ul><ul><li>A novel Rota virus candidate vaccine (Bharat Biotech) </li></ul></ul><ul><ul><li>Inactivated JE vaccine (Biological E) </li></ul></ul><ul><ul><li>Development of </li></ul></ul><ul><ul><li>vaccine for HPV (Virchow) </li></ul></ul><ul><ul><li>Improved feedstock for cellulosic bioethanol products (Avasthagen and Metahelix) </li></ul></ul><ul><ul><li>Improved enzyme combination for enhanced ethanol recovery (Richcore) </li></ul></ul>
  25. 26. Why such low response from agribiotech private sector Potential Currently here
  26. 27. I Is public policy catalytic in promoting R&D in private sector?
  27. 28. <ul><li>Lack of mutual trust and appreciation 40% </li></ul><ul><li>Lack of infrastructure facilities 26% </li></ul><ul><li>Lack of financial gains 14 % </li></ul><ul><li>Different norms of evaluation /reward 11% </li></ul><ul><li>Lack of frame work 7% </li></ul><ul><li>Others </li></ul>Does public sector institutions/universities ready for PPP?
  28. 29. <ul><li>Continue investing in technology and breeding </li></ul><ul><li>Technology assessment is key in partnerships with public sector </li></ul><ul><li>Public policy for providing incentives / fiscal benefits should be on par with Pharma </li></ul><ul><li>Strengthen seed industry organizations for organizing communications and to deal with stakeholders </li></ul><ul><li>Seed policy 2004 in parliament need to be persued </li></ul><ul><li>Partnerships with global start ups and SMEs </li></ul><ul><li>One stop shop technologies available in public sector institution/ universities at agency level should be made available </li></ul><ul><li>Scientist – entrepreneur scheme of DBT soon will launched to boost start ups </li></ul><ul><li>PPP schemes should be revisited to tailor the needs of Agribiotech sector </li></ul>Road ahead?
  29. 30. Lack of public sector technologies
  30. 31. Not very steep we can climb Thanks

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