Vaccines

It was a good year for the vaccines sector in 2005-06. The business of the companies in this sector registered over 38 percent growth to notch Rs 1,800 crore in revenues. Of the Top 10 companies in BioPharma business (excluding diagnostics), five of them Serum Institute of India, Panacea Biotec, Aventis Pharma, GlaxoSmithKline, and Shantha Biotechnics are primarily into vaccines business.

Both Indian as well as multinational companies are playing a key role in meeting the requirements of the huge Indian population. In India about 17 companies are involved in the marketing of over 50 different brands for 15 different vaccines. Rabies vaccine has highest sales in India from company's direct sales followed by HIB vaccine. While the vaccines business in India accounts for about 35 percent of the market, exports accounted for 65 percent of the business.

Clearly, there is a stiff competition on the price front and companies are launching newer vaccines into the market to increase their revenue pie. Further, there has been an increased effort in 2005-06 on awareness campaign to expand the domestic vaccines business. Companies like GlaxoSmithKline have launched awareness program with a nationwide initiative to educate children and family members. Similarly others too have joined the fray to promote the sales.

During the year, several new products were introduced in the local market. Serum Institute and Shantha Biotech have launched quadravelent vaccines, which received the best BioSpectrum Product of Year Award 2005. Wockhardt launched Hep A vaccine in India.

GlaxoSmithKline announced the launch of its vaccine, Boostrix, comprising Acellular Pertussis reduced, Diphtheria Toxoid reduced and Tetanus Toxoid (dTpa) in India.

Another important development has been expansion of the manufacturing facilities. GlaxoSmithKline has been setting up its production facility at Nasik, which is expected to start its operations in the second half of 2006. Biological E too is expanding its vaccine manufacturing facility at Hyderabad by investing Rs 90 crore. Further, large animal vaccines like Venkateshwara Hatcheries and Indian Immunologicals are also all set to launch their own new vaccines for human beings.

Established Indian vaccine players such as Bharat Biotech International, Serum Institute of India, Indian Immunologicals, Shantha Biotechnics, Panacea Biotec, Cadila Pharmaceuticals and Biological E are working in close collaboration with both Indian and international research organizations and agencies in developing vaccines for anthrax, HPV, HIV, typhoid, Japanese encephalitis, malaria, cholera, rotavirus, HIB meningitis and other diseases.

In India these are being developed in close cooperation with premier research institutes like the National Institute of Cholera & Enteric Diseases, Kolkata, National Institute of Immunology, Jawaharlal Nehru University and All India Institute of Medical Sciences, all in New Delhi, Central Drug Research Institute, Lucknow, Institute of Microbial Technology, Chandigarh, Indian Institute of Science, Bangalore, Center for DNA Fingerprinting & Diagnostics, Hyderabad, National AIDS Research Institute, and National Institute of Virology, both in Pune. Bharat Biotech International Ltd, for example, has partnered with US-based Novavax to develop avian influenza vaccine for India and other developing countries from South East Asia. This is a significant step in the public-private partnership development in public interest. These are a few examples to illustrate that Indian companies now are now looking at newer markets and newer areas.

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