Growth of the biotech sector in Asia-Pacific region outpaced its performance in other parts of the world, with an unprecedenting 46% increase in revenues.

Globally, the revenues of publicly-trading biotechnology companies surpassed $60 billion for the first time in the sector's 30-year history, the Ernst & Young Global Biotech Report 2006 said.

In 2005, Asia-Pacific has become the first region to reach aggregate profitability in biotech. China and India continued to attract attention and deals, motivated by the desire to increase access to these large and growing drug markets, and by the need to lower the costs of drug development.

According to the report, number of deals in vaccines were energised by concerns around avian flu, SARS, and biodefense products, while looming patent expirations led to more deals in generics.

Utkarsh Palnitkar, industry leader, Ernst & Young India said: "India's generic firms are positioning themselves to play a big role in the evolving biogenerics market.

With our advantage in IT and access to well-trained and relatively less expensive human capital, India is also well poised to become a hub for processing and managing clinical data. Further, stem cell research will help us create a niche".

India is moving from label extension support centre to include global pivotal studies and the growing generics industry is boosting the flow of pharmacokinetic studies to the country, the study said.

While stem cell research has raised some debate in the West, investments have been flowing to India in this field. Strategic emphasis in India has shifted to develop new vaccine delivery systems, instead of manufacturing vaccines in bulk to maintain cost competitiveness.

(http://timesofindia.indiatimes.com)