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January 22, 2006

The rise of drug discovery services

Businessworld has a cover story on how a clutch of entrepreneurial companies are making a mark on the global drug discovery value chain. The article includes an interview with former Ranbaxy Labs CEO D. S. Brar, who along with GVK Group's G.V. Sanjay Reddy, has entered the discovery services space.
Others include people like A.V. Rama Rao (Avra Labs, Hyderabad), Ranga Raju (Sai Life Sciences, Hyderabad), T.R. Bhoopathy (Magene Life Sciences, Hyderabad) and V. Ravindranath (Bharavi Labs, Bangalore). It is also attracting the attention of global financiers like Purnendu Chatterjee, who has already financed four projects under the TCG Lifesciences umbrella in India.

Click image for more detailed table.

...What is the business opportunity for India in terms of numbers?
Currently, the value of work being done by discovery services companies is about $300 million, including the clinical trials business. And it is growing at 30-40 per cent annually. In three years, I think we should aim for 3 per cent (of the global pie), but 1.5 per cent should definitely come. It should be about Rs 10,000 crore in the next three years.

Arun Natarajan is the Founder of Venture Intelligence India, which tracks venture capital activity in India and Indian-founded companies worldwide. View sample issues of Venture Intelligence India newsletters and reports.