Accelerating Agribiotech R&D in Private sector

Public Policy and Partnerships

S.R.RaoDepartment of Biotechnology

Government of IndiaE. Mail: srraodbt@yahoo.com

Today,s topics

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

Size of Private Seed Sector in India

Sources: Seed Industry in AP- A profile, 2004 04/11/23

Can we learn from current status?

Source: - International Seed federation/www.worldseed.org/2008

04/11/23

Domestic market size of seeds in different countries

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

SeedDistribution & 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

04/11/23

Conventional breeding , seed production and distributions\system is shifting and getting complex

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

Risk profiling has become important in technology led market creation

Risk Core technology interest

Perceived risk factors

LowCRO, CMO & Diagnostics (Services Business)

Relatively low risk companies

Med.Enzymes and Biogenerics

Medium risk

HighDrug discovery & delivery technologies / Bio-agri/ Bioinformatics / Biomass / Biofuels

Perceived as high risk, nascent business models

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 -

World’s Top Ten Seed Companies doing business in India

Foreign R&D Centres Foreign Centers in Seed Research

• 33 companies having R&D centres in sectors .– Genetic diversity and good mix of

heterogeneous market segments.– Good mix heterogamous market segment. – Export potential in tropical to subtropical

to some extent temperate.– changes in the stock of knowledge

generate new techno-economic opportunities that stimulate and encourage the private sector to undertake developmental research

– Regulations , IPR

Lessons from current statusThe World of agriculture is undergoing major changes

• Biotechnology Traits

• Value Added Crops

• Value transfer between agrochemicals and seeds

• Global Consolidation of industry

• IP protection laws

Technologies that are likely to come to India in the next ten years

• Herbicide Tolerance

• Drought Tolerance

• Nitrogen Use Efficiency

• Healthy Oils

• Higher Yield

• Feed Nutrition enhancement

Lessons from current statusValue Transfer into Seed

SEEDS

Human Health

Water & Soil

Nutrients

Crop Chemicals

AnimalNutrition

Adventa 2008

Lessons from current statusChallenges

Adventa 2008

Innovation to Commercialization- stages

Birth Phase

IdeaProof of Concept Prototype / Working Model

Pilot plant Stage /pre-Commercial Trials/ Validation

Commercial Product/ Process

Seed Financing

Venture Capital

Government Sources adequate … ??

Private Equity

Venture Capital

Government Sources

A. TDDP (PATSER)

B. PRDSFC. NMITLI

Private Equity

Venture Capital

Product Licensing / Marketing

Government Sources

A. TDBB. NMITLIC. PRDSF

Ignition funds for

Scientist innovators

Survival Phase Growth Phase

Does current PPP schemes address the needs?

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,

Small Business Innovation Research Initiative (SBIRI)

• To support early stage, • pre-proof-of-concept research• To take up leads towards

commercialization

MISSION

Nurture innovative and emerging technologies / entrepreneurs.

Modified SBIRI is under discussion

Proposals received

Receipts

0

10

20

30

40

50

60

0 1 2 3 4 5 6 7 8 9 10

Batches

No.

of p

ropo

sals

und

er e

ach

sect

or

Healthcare

Agriculture

Biomedical

Environment

IndustrialProcess

Bioinformatics

FoodBiotechnology

Others

Small Business Innovation Research Initiative Projects

15

7

9

26Medical

Agriculture

Industrial Processes/

Enzymes

Others

Advertise 6 times

361 proposals received

41 proposals recommended

32 proposals supported

9 projects in pipeline

Public Private Partnerships

Agriculture Sector1. Bejo Sheetal Seeds Pvt. Ltd., Jalna2. 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)

3. Labland Biotech Private Ltd., Mysore4. Mahyco research Center, Jalna5. Multiplex Bio-Tech Pvt. Ltd., Bangaolore6. Rasi Seeds Pvt. Ltd., in collaboration with Tamil Nadu

Agricultural University (TNAU), Coimbatore.7. Millenium Exports, Chennai8. Oriental Aquamarine Biotech India Pvt. Ltd., Coimbatore in

collaboration with National Centre for Aquatic Animal Health, Cochin University of Science and Technology, Kochi

9. Pelican Biotech and Chemical Labs, Alapuzha Kerala10.Poseidon Biotech, Chennai

SBIRI SANCTIONED PROJECTS SECTOR-WISE

Biotechnology Industry Research Assistance Council (BIRAC)- End-to-end Services

Started as a pilot project and EFC ready for circulation under I&M sector

Biotechnology Parks and Incubators

Biotechnology Park at Hyderabad – operational contract given to M/s Allexendria Promoter for Food Biotech Park at Mohali selectedHimachal Pradesh Biotechnology Park is negotiating with Nano- science company for designIIT Guwahati biotech incubator is progressing wellSeed money provided for Orissa Biotechnology ParkTICEL Park in Chennai supported for expansion of incubation spaceIncubator in Bangalore in progressIn addition, Technology platform for idea generation in collaboration with FICCI established with three platforms already operational in

Agriculture Biotechnology Implants and devicesBiopharmaceuticals

NOT many takers from agribiotech

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 OBJECTIVEMore Public –Private Partnerships More Public –Private Partnerships

Example: New Millennium Indian Technology Leadership InitiativeExample: New Millennium Indian Technology Leadership Initiative

SPREAD OF PROJECTS SPREAD OF PROJECTS

56

4

9

5 5

3 3

2

0

2

4

6

8

10

12

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Pla

nt

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Chem

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Com

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Technolo

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Energ

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Mis

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nous

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D&P

Chem Matl

ICT Energy

APBTBT

Bioinfo

Misc

56

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9

5 5

3 3

2

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APBTBT

Bioinfo

Misc

Biotechnology Industry Partnership Programme (BIPP)EFC ready for circulation. Total cost Rs 350 crores

Partnership focused on cost sharing

Advanced and new technologies with futuristic potential Major un-met national technology needs IP will belong to industry but royalties (3-7 per cent) to

public scientist and funding agencies Cost sharing with DBT contribution 30-50 per cent of

project cost All companies eligible

Round One – 9 projects technically clearedAn insight:

Phase-II and phase-III trials of

– discovery molecule for heart failure complicated with diabetes mellitus (Torrent)

– Oral insulin for type 2 diabetes (Biocon)

– A novel Rota virus candidate vaccine (Bharat Biotech)

– Inactivated JE vaccine (Biological E)

Development of

– vaccine for HPV (Virchow)

– Improved feedstock for cellulosic bioethanol products (Avasthagen and Metahelix)

– Improved enzyme combination for enhanced ethanol recovery (Richcore)

Why such low response from agribiotech private sector

Potential

Currently here

I

Is public policy catalytic in promoting R&D in private sector?

Does public sector institutions/universities ready for PPP?

2%

40%

26%

7%

14%

11%

•Lack of mutual trust and appreciation 40%•Lack of infrastructure facilities 26%•Lack of financial gains 14 %•Different norms of evaluation /reward 11%•Lack of frame work 7%•Others

Road ahead?

Continue investing in technology and breedingTechnology assessment is key in partnerships with public sectorPublic policy for providing incentives / fiscal benefits should be on par with PharmaStrengthen seed industry organizations for organizing communications and to deal with stakeholdersSeed policy 2004 in parliament need to be persued Partnerships with global start ups and SMEs One stop shop technologies available in public sector institution/ universities at agency level should be made available Scientist – entrepreneur scheme of DBT soon will launched to boost start upsPPP schemes should be revisited to tailor the needs of Agribiotech sector

Lack of public sector technologies

Not very steep we can

climb

Thanks