The Changing Geography of Ideas Resurgence of India Innovation Inc. Praful Naik, Ph.D. Chief Scientific Officer Bilcare Limited

Transcription

1 The Changing Geography of Ideas Resurgence of India Innovation Inc. Praful Naik, Ph.D. Chief Scientific Officer Bilcare Limited

2 Busting myths about Indian Innovation India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February

3 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February Myth #1 Look west for ideas

4 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February China US rd HOTSPOT FOR INNOVATION WORLD INVESTMENT REPORT (2005) India UK leading Global MNC have R&D hubs in India Germany Japan Growth of corporate R&D 17% (North America -5.2%, Europe 2.3%) France Brazil (Source: Booz Allen Hamilton 2007) Canada 4.3 Netherland Russia Sw eeden WHERE IS RESEARCH HEADED? % Responses Base : 68 Largest MNC spenders on R&D Taiw an Source: UNCTAD (2007)

5 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February Myth #2 Copycats of US/Europe

6 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February ANNUAL GROWTH RATE OF PATENTING PCT Filings India China US Patents Granted (2003) US Patent Applications Source: US Patent Trademark Office Indian Patent Applications ISI Thomson Scientific Papers Source: Indian patent facilitation center No Top 5 Patent Cooperation Treaty Applicants from Developing Countries(2002) 0 China India Turkey Slovenia Korea Total Patenting Growth rate Medium Low & Low-Tech Poland Chinese Taipei Singapore Czech Republic High&Medium High-Tech, Source OECD CSIR (India) Samsung (Korea) Biowindow Gene Development ( China) LG( Korea) Huawei Technologies (China) Source: World Intellectual Properties Organization (2006)

7 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February TATA NANO TATA NANO FIRST of its kind car in the world 34 new patents The peoples car@$2500 Gandhian engineering No radio, power-steering, AC, one wiper Reengineered car for cost reduction Confirms to environmental standards (Euro 4 Emission Standards) Meets Front and Side Impact crash ratings Made four wheeler accessible to millions of people worldwide

8 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February Myth #3 Agricultural not Technological focus

9 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February INTEL INDIA CO DEVELOPED TERAFLOP CHIP Powerful programmable processor Can be used for diverse research applications for scientific experiments, oil exploration number crunching Involved in logic, circuit and physical design Developed in a record 20 months MICROSOFT RADIO FREQUENCY IDENTIFICATION MICROCHIP Product security and identification Adopted by Wal-Mart and Gillette

10 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February GE JFWTC Set up John F. Welsh Technology Center in 2000 Designing GEnx engine which powers Boeing Dreamliner 787 and Boeing 747 GENX ENGINE Designing simulations to control bird strikes and fan blade outs in MOTOROLA RESEARCH LABS 30 Full time researchers and scientists 40% of all software in Phones (including Motorazr) Multilingual displays, speech recognition MOTORAZR Developing noise cancellation technology

11 HIV MONITOR ReaMetrix developed immune monitoring test Cuts cost of testing by 1/5th Maintained dry state so can be transported easily without refrigeration Supplying to Africa, Brazil BIOCON Filed for over 800 patent applications worldwide Over 130 granted patents R&D focus growth of 36% in R&D expenditure in India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February

12 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February Myth #4 Basic NOT applied Knowledge

13 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February AKASHGANGA AUTOMATIC MILK COLLECTION SYSTEM Cut time from 5 minutes to 30 seconds Milk analyzed on six parameters Monitors adulteration through analysis AKASHGANGA E-CHAUPAL Transforming business in rural areas Computer in local farmer s house - Serves about 600 farmers Information disseminated/collected in surrounding areas by VSAT More value and productivity E-CHAUPAL Accurate price

14 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February SUZLON Top three wind players in wind energy sector ( From <10 in 2002) Factories in US/China, Operates in 14 countries Unique proprietary turbines for cost advantage Has 7% global market in 2008 Set up innovation center in Denmark SUZLON TURBINES

15 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February KANSO Two seater 100 cc car Powered on solar energy upto 320 watts of power Cost - $3750 E-BIKES Rs bike that runs on electricity KANSO CAR Environmentally friendly (saved $1mn in fuel cost per month)

16 What has led to this resurgence? India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February

17 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February #1 The Economic Engine

18 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February GDP GROWTH RATE Rank India 2 Emerging Markets 0 World Output USA Europe Japan China India E Brazil Mexico Russia 4 Economy by PPP terms 3 Largest Economy (2050E) SOURCE: State of Indian Economy (2007) SOURCE: GOLDMAN SACHS 2007 All India: Age split in % < 40% Dependency Ratio % 65% 6% 24yrs Earning Population Population <35 years Population > 60 years Median Age SOURCE: TECHNOPAK CONSUMER Technopak Consumer Outlook 2007

19 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February #2 The Intellectual Capital

20 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February mn mn Annual Enrolments at Graduate and Above 6% 11.20% (NCAER) /(Indian Science Report) % of students in Engineering (Farrell) Universities Deemed Universities Institutes of National Importance Ministry of HR ~6000 Annual Engineering Graduates Estimated to grow to (2015) Annual Science PhD's UGC and Mashalkar Estimates 400 Government Research Labs 1300 Industrial R&D Units 21 R&D staff /1000 Department of Science and Technology

21 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February Returnees of IIT from Abroad (3yrs) 40% Drop in no of IITians going to US 60,000 Total IT professionals returning (NASSCOM 2007) % mn $ % Returning Indians to total Employees General Motors Monsanto GE Biocon Number of Non resident Indians Median earning of Indian origin (US Average$38885) Indians responsible for tech firms start up in US Ministry of external affairs (2004)

22 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February #3 The Financial Capital

23 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February INCREASE IN VC INCREASING MONEY FLOWS $261.1bn Forex Reserves (2007) $21.25bn Foreign Inst Investment (2007) $6.6bn Foreign Direct Investment (2007) State of Indian Economy, CII Paper Oct National Innovation Project sourcing $6bn VC from World Demos (E) Value of deals (USDmn) Number of deals 0 Venture capital amount doubled since 2000 Demos 2007 Nokia + Intel investing $250mn in VC Demos 2007

24 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February Average hourly wages in USD 24 COST ADVANTAGE IN INDIA China India Poland UK Germany Bayer Crop sciences Average Investment in a Chemical Plant SCORPIO Developed at 1/10th cost of similar model abroad SARAS Passenger plane developed for $11mn INTEL Average Annual cost to design a chip 1/10 th of Silicon Valley Average Salary of Indian in R&D 1/10 th of Europe 0 World India, China Bayer Crop sciences

25 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February #4 Enabling State Support

26 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February % Current R&D as % of GDP 2% Planned R&D as a % of GDP (2012) 40% R&D Investment CAGR $ 4.5bn Annual Science Budget 24% Increase in Annual Science Budget $230mn National Science and Engineering Foundation (Fundamental Research) Various tax exemptions and benefits for R&D Government of India Ministry of Commerce and Industry Controller General of Patents Designs and Trade Marks Intellectual Property Protection Patent applications: ( 40%) Patents Granted: ( 125%)

27 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February #5 The Private Sector & MNC Investment

28 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February Number of MNC R&D ~ Domes research GE: John F. Welsh Institute, Bangalore ARM: India and US Research on par Microsoft: Third largest R&D lab in India 300 more R&D centers planned Employ scientists Planned investment USD4.7 bn $815 mn $4176 mn Private R&D Investment $4075 mn $8658 mn Total R&D Spending

29 Which sector will drive innovation in the future? India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February

30 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February USD 12bn 30.40% Growth THE IT- INNOVATION PARTNERSHIP Software exports (Up from USD 9.2bn in 03-04) 35% IT Exports as a % of total Exports ~1-2% R&D as a % of Sales (Nascomm) IT revolution geared the India Inc.

31 The three big players of tomorrow India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February

32 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February Highest Number of US FDA Approved Plants Outside the US are in India 2004 PHARMA $4.6bn Revenues 50% Expected growth in 5 years $142mn Investment in R&D by 10 largest drug firms ~6% R&D as a % of Sales (DEMOS RESEARCH REPORT) 30 World class educational institutes (TIFR/IISC) Low cost of new drug development (1/10 th of Europe) Cost effective contract research Pharma companies setting up R&D centers 10 8 TRIPS compliance Average Salary of Indian 0 India Italy Spain China Israel Pharmaceuticals

33 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February BIOTECH $1.1bn Revenues 37% Growth $5bn Growth target by 2010 Rs.6.2 2bn Rs.14. 5bn Biotech Research Plan outlay ( ) Biotech Research Plan Outlay ( ) Patent protection introduced for microorganisms Main contributors to biotech industry pharmaceuticals, immunobiologicals and industrial products (DEMOS RESEARCH REPORT) Biotechnology

34 2004 NANOTECHNOLOGY $ 200 mn $s 24 mn Planned investment by Government in 5 years Nano Science and Technology Initiative spends Focus: Nanotube based solar power cells, diagnostic kits and drug delivery (DEMOS RESEARCH REPORT 2007) Nanotechnology India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February

35 A closer look at Healthcare and life-sciences India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February

36 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February Growth projections for Indian Healthcare Industry in INR Healthcare Market $37.5bn Size of healthcare market $75bn Expected growth in 5 years 15% CAGR 10 times Expected growth of CAGR till % Growth in 2006 Technopak Health Outlook

37 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February Population Growth across age groups DEMOGRAPHIC GROWTH DRIVERS OF HEALTHCARE IN INDIA 18.7mn Size of the middle class (Households) 32.7mn Expected growth by 2010 ($4938< Middle class<$24691) mn People over 60 years (2006) 173mn Expected growth to NON COMMUNICABLE YEAR MN MN IN YR 2015 ~29% Urbanization (2006) 40 Expected growth by 2026 Cancers Diabetes Mental Health Significant increase in Epidemiological/lifestyle Transitions Technopak Health Outlook Cardiovascular CODP and Asthma National Commission on Macroeconomics and health

38 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February Insurance Premiun in Rs 000mn Projected Growth of Health Insurance Premium Payouts (CAGR 35%) Projected Growth of Indian Medical Value Travel Industry (CAGR 20%) 700 OTHER GROWTH DRIVERS OF HEALTHCARE IN INDIA Emergence of empowered customer Increased accessibility to health insurance Medical Value travel INR '000mn Technopak Health Outlook

39 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February Global Market $8bn (Kalorama) India Market 2010 Opportunity $ mn (Industry Sources) Discovery research Outsourcing $14.4bn (Centerwatch 2007) $1.5bn Mckinsey Clinical Research Outsourcing $25.7bn 2010 (Frost and Sullivan) 10% of Global Market Custom Manufacturing The key opportunity areas

40 Company Overview & Its Technology Solutions

41 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February Company Overview Leading provider of research-driven solutions solely-focused on pharmaceutical industry Founded in 1994 and headquartered in Pune, India with global presence Manufactures packaging materials to significantly enhance function, physical efficiency and safety of medicines Leading producer in Asia (~65% share of Indian barrier blister packaging market) and provides world-class packaging research and clinical trial services Operates best in class, manufacturing and research facilities in India, Singapore, UK and USA India: 1st pharma pkg. materials mfg. facility of its kind in Asia, and 8th in the world, 1st pharma pkg. Res. facility in the world. 1st clinical trials services facility in the country. 1st Academy for Clinical Research in collaboration with ACRP of USA. Mission of Bilcare & ACRP Build competencies for best practices in Clinical Research across Asia Singapore: 1st pharma pkg. materials mfg. having the worlds largest state-of-the-art polymer coating line. Awarded "Pioneer Status" by Singapore government USA: FDA and DEA approved clinical services facility along with a technologically advanced material slitting facility UK: MHRA approved clinical trial services facility along with materials warehousing & distribution Pioneering and patented packaging & Healthcare management system technologies Optimum packaging solutions devised in just 4 weeks using patented process Several novel patented products for successful branding strategies Significant cost savings benefits for pharmaceutical companies Leading packaging solutions through R&D

42 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February Global Clinical Services

43 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February Bilcare s clinical trial services provides end-to-end clinical supplies management services including: Protocol design Regulatory compliance & patient safety Batch manufacturing Packaging design Storage and global distribution IVRS Returns management Bilcare provides comprehensive clinical supplies services to its global client base Operational and distribution facilities in India, UK, United States and Singapore Bilcare also provides distinctive services to its customers in the areas of product formulation and development Opportunity to more rapidly and effectively conduct clinical trials, thereby potentially enhancing the speed to market of NCE s Formulation Development Develop formulations with a focus for clinical studies including pre-formulation All dosage forms and their line extensions Over encapsulation & blinding of drugs Develop placebos & comparator supplies Addressing needs of reformulation for phase I IV studies Stability Program Analytical Development Cleaning method validations Dissolution testing profile Analytical method development & validation with a focus on drugs undergoing clinical studies Analysis of drugs under stability program Analytical support for pre-formulation & formulation development Shipping studies evaluation

44 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February Research Services

45 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February Pharma Packaging Research Packaging Development & Design Packaging Audit Brandpak building solutions

46 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February Material Services

47 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February Comprehensive range of innovative packaging materials films & foils: Scientific optimization of drugs Maximize shelf-life Increased product stability Enhanced speed to market Protection against counterfeits Packaging comes in Blister films, Aluminium foils, Cold formed blisters (Alu Alu), and Wrap Systems The Company produces films and foils for blister packaging of pharmaceutical tablets and capsules, employing four distinct manufacturing processes Dispersion Coating Technology state-of-the-art dispersion coating systems equipped with sophisticated gauging and other control systems and operated using in-house proprietary process technology Dry Polymer Lamination Technology used to produce multi-laminated films with high clarity and optimal physical features Aluminium Processing Technology used to produce varied speciality coatings, including laminations on aluminium, which result in products which retain reduced solvent levels, well below international limits Slitting Technology integrated with packaging systems to provide customers with comprehensive functional safety and product protection Bilcare has extensive in-house research and design capabilities, used to develop and test innovative packaging solutions Cyclic-olefin copolymer (COC) also used for core layer in 3-5 layer blister films PVC is most common resin for core layer Outer layer made from a variety of resins including polypropylene and PVC

48 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February Academy for Clinical Research & Innovations

49 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February Academy for enhancing competencies and capabilities of the clinical research professionals and clinical research sites Create continual innovations for addressing key concerns in the space of clinical research Develop value based solutions including IT enabled solutions for enhancing the speed of clinical research study programs Innovation Knowledge Sharing Commitment to Quality & Highest Ethical standards creation Collaborate with the leaders of Best Practices to enable true enrichment of professionals Unique 1 year post graduate diploma program in clinical research management in partnership with ACRP of USA Create & build competency of Clinical Research professionals in collaboration with ACRP, USA across Asia

50 Addressing the Key Customer Challenges The 5 C s Counterfeit Compliance Convenience Communication Cost India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February

51 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February Challenges Counterfeit needs to be recognized as a key challenge as it leads to Non-Compliance resulting in frequent change of prescription; drug resistance secondary care leading to significant increase in healthcare management cost Medicine as total cure recognized as Myth Imbalance in diet and fitness management are major contributing factors Solutions must Empower consumer to participate in the global action on anti-counterfeiting Be Commercially sustainable & yet simple for operability by the consumer Be capable of addressing multiple concerns

52 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February Challenges Avoidable Complications & Hospitalization Enhanced burden of healthcare costs on Nations Anti-Counterfeit Who should tackle? Producer, Regulator, Patient, Pharmacist or the Doctor? Government, Healthcare Organizations, Insurance Cos.? Means & process to facilitate Collaborative efforts of all stake holders

53 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February Challenges Clinical Research & Development of new medicines / therapies Impact of Non - Compliance Real time patient feedback Timely professional interventions Means & process to facilitate Robust Clinical Research Management

54 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February 2008 National Health System Manufacturer Hospital Insurer Healthcare Knowledge Management System Distribution Pharmacy Care giver Doctor Patient Anti - counterfeit Support Integrated Interactive Companion Device Compliance Support

55 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February Bilcare A business model based on innovation Symbiotic & Synergistic collaborative Approach Innovate over spheres of conventionalism Crunch and Breakthru process Focus on creating innovations with effective end use applicability over 60 patent filings worldwide Value proposition for Well Being and Health care management

56 Honorable Dr APJ Abdul Kalam, Dr John LaMattina President Pfizer Global R&D, Dr. R Chidambaram - Principal Scientific Advisor to Government of India inaugurating Bilcare Center of Excellence and the Revolutionary Technology India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February

57 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February 2008

58 India As An Innovation Hub Praful Naik, CSO, Bilcare Limited: Telfer India Forum, OTTAWA, 20 th February Thank You