Biotechnology in India: the placement hurdle

This post is a legacy of me being a student of Biotechnology at IIT Kgp till not so long ago. After all the time myself and my fellow students at IIT Kgp spent thinking about this particular topic, I try to analyze here why it is so difficult for a biotechnology graduate in India to find a proper job in the industry that promises so much. The huge stake Indian biotech giants like Cipla and Ranbaxy have on the global generic drugs market is a major contributor to the hype around the Indian biotech scene. But when you look closely, you realize that although India is famed to be the “pharmacy of the third world”, there is very little home-grown innovation and discovery happening in this field!

Not to downplay the achievements of Indian pharmaceutical companies, generic drugs manufactured by them are indeed the only medicines affordable in much of Asia and Africa. Taking advantage of India’s weak patent protection laws, Indian companies have thrived on manufacturing and marketing generic drugs. But it has meant that they are by and large not involved in the prospecting and discovery of new drugs. So, essentially a big R&D sector where biotechnology graduates would find jobs is non-existent. In fact, although they are working the biotech sector, such companies would prefer to hire chemists and marketing professionals.

However, this is only true for Indian companies. Foreign pharmaceutical companies like Pfizer, Bayer AG, etc are at the fore-front of basic R&D leading to the discovery of new drugs. That opens up a big market for biotech professionals. But what’s stopping these companies from opening up R&D in India? Pharmaceutical giants are apprehensive that the drugs for which they have to spend millions of dollars before it gets commercialized would not yield appropriate returns if released from India. The same laws that have allowed Indian companies to capitalize on the generic drug market are deterring foreign players from directly opening up R&D in India.

The recent fate of Nexavar, a potent anti-cancer drug from Bayer, is a point in instance.  In March 2012, an Indian court granted compulsory license of manufacturing the generic version of Nexavar to an Indian firm (Natco Pharma), referring to the price of the medicine as too exorbitant for sale in India. In May 2012, Cipla decided to cut the prices further by launching its own version of the generic version of Nexavar. While it is absolutely remarkable that the price of a potentially life-enhancing drug has gone down by almost 75% as a result of this, the fact remains that such a ruling creates great apprehension for pharma companies on the worth of their brands in India.

Without a viable R&D sector, students and fresh graduates thus continue to have it tough to find proper placements in India.

Bio-pharma is however only half the story. Other biotech products like GM crops have also faced major stumbling blocks in our country. Although Bt cotton is doing great in India and around the world, Monsanto’s Bt brinjal faces an indefinite moratorium. Change is not very easy in our country, least of all which involves the age-old agricultural practices. It is difficult to imagine a biotech company like Monsanto being allowed to develop new cultivars and perform field trials on Indian soil. So essentially, more roadblocks for R&D and less job opportunities for young bio-techies.

In my view, the govt. has to cut through the mess created by all the protests and agitations (almost inevitable when anything new is being introduced) and address the core scientific issues. Once scientifically validated, there should not be second thoughts about introducing GM crops. It would no doubt be helpful in improving production without damaging the basic nature of the soil and several GM crops are amenable to better storage, which is a big issue in our nation. This apart, it would also give a much needed impetus to biotech industry—both directly and indirectly.

There is also another issue that contributes to the dearth of industrial opportunities—and that involves the education system in place. With biotechnology being proclaimed as the next big thing, biotechnology courses are cropping up like mushrooms in every part of the country. The question to be asked is how many of these courses actually train students for a career in the industry. Very few actually. And unless industry-oriented training is in place, companies like Biocon (one of the few Indian companies who are actually innovating in this field), would be wary of hiring a fresh graduate and prefer only those who have a proven research record (e.g those with a PhD degree).

As it is, industrialists and venture capitalists are still skeptical about investing in biotechnology in India. Inadequate patent protection adversely affects innovative research; also long-term results and uncertainty are strong deterrents for investors. But there is hope for change. Reports that more and more experts in biosciences and related fields are shifting base to India from foreign universities and organizations are greatly encouraging. In the end, what is needed is a concerted effort. Government policies and investor mindsets would not be very easy to change, one feels, without having other unwanted effects. One has to tread carefully with introspection, and I believe in this change the young breed of biotechnologists would have a considerable role to play in future.