The Indian biotech industry reported a combined revenue of $2.5 billion in the 2007-08 financial year. The heady growth achieved by the industry in the last five years dropped to 20% in 2007-08 due to appreciation of the rupee and price pressures in global markets.

The BioSpectrum Biotech Industry survey conducted in association with Biotech led Enterprises (ABLE) shows that the industry?s revenue increased to $2.56 billion in the fiscal ended March, 2008 from $2.01 billion a year ago.

In 2007-08, nearly two-thirds of the industry?s revenue came from exports, so strengthening of the rupee was an important reason for the industry?s slow down. The rupee gained 10% to 12% against the dollar last fiscal, the report added.

Narayanan Suresh, group editor of BioSpectrum said, ?After five straight years of over 30% growth, India?s fledgling biotech industry has slowed down. The appreciation of the rupee for most of 2007-08 stole the high growth momentum from the industry that records two-thirds of its revenues from exports.?

In 2007-08, the industry?s investments touched Rs 2,750 crore, an increase of over 21% compared to the previous fiscal. Based on the current trends and the new progressive biotech policy in place, the survey forecast revenue of about $13-16 billion by 2015.

The revenue could be higher if some innovative products, which are currently in the pipeline, receive regulatory approval. KK Narayanan, president of ABLE, said, ?The inability to sustain the growth momentum can be attributed to several factors, the primary one being that the revenue from Indian-made innovative biotech products, that can be sold globally, are yet to kick- in.?

The survey also noted that Pune-based Serum Institute emerged as the top biotech company with revenue of Rs 987 crore for the third consecutive year followed by Biocon, Panacea Biotech and Nuziveedu Seeds.

The survey shows that Hyderabad-based Nuziveedu Seeds with a revenue of Rs 303 crore was the number one Bioagri company beating last year?s winner Salem-based Rasi Seeds.

The sector had a compounded annual growth rate (CAGR) of 34%. BioServices had the highest CAGR of 63% followed by the Bioagri sector with 61%.