Correspondence: Viren Konde, Research & Development, Gennova Biopharmaceuticals Limited, Plot No. P1, ITBT Park, Phase II, MIDC, Hinjwadi, Pune 411 057, India. E-mail: virenkonde@gmail.com

¹is a Senior Executive, Research & Development at the Gennova Biopharmaceuticals Limited, Pune, India. Before this, he was an Assistant Professor of Biotechnology Management. He also worked as a postdoctoral researcher at the University of Houston, Texas, USA and L.C.B.-C.N.R.S., Marseille, France. He specialises in the areas of molecular neurobiology and bacteriology. He runs a blog on Biotechnology Management (http://biotechmanage.blogspot.com). His other interests include biotechnology industry analysis and biotechnology trends review.

Received 17 October 2008; Revised 17 October 2008; Published online 2 December 2008.

Abstract

A typical business model consists of three components – value proposition, value-chain structure and revenue generation. These components are used to give a general description of a business. The biotechnology industry is not really characterised by specific business models and neither is there one single model for success. The sector is not only characterised by an enormous diversity, but is also driven by innovations, which makes the prediction of future development rather difficult. The enormous flexibility of biotechnology companies is a strength that has helped them survive in times of economic difficulties. In years of crisis, companies have managed to reorient themselves, change their business plans or even switch markets. Several Indian firms have focused their businesses on the development, manufacturing and marketing of biopharmaceuticals and providing services. The Indian companies appear well positioned to leverage their cost-effective manufacturing capabilities to corner some of the market share and compete on a global scale. This paper discusses the various business models and strategies adopted by the biotechnology companies that directed the growth of the biotechnology industry in the country based on the techno-economic dynamics and the key challenges faced by these firms.