Inder Verma, Ph D, is currently working with the Salk Institute for Biological Studies, USA. Located in California, the Salk Institute is a private, non-profit, research organisation, whose scientists are dedicated to fundamental research in biology and its relation to health, studying such challenging problems as the organisation and operation of the brain, the control of gene activity, and the molecular origins of cancer, AIDS and other diseases. Dr Verma shared some of his views about bio-technology and Genomics with indiamarkets.

indiamarkets: What is Genomics and what is its status worldwide?

Inder Verma: Genomics is an area of biotechnology that is exploding with promises to furnish a significant number of therapeutic and diagnostic products for the future. Estimates for world-wide sales of these markets have reached a figure as high as US$ 180 billion. In this century, numerous genomic products, now in the pre-clinical and early FDA clinical trials, will provide a rich source of innovative new diagnostics and revolutionary therapeutic treatments. Genomics companies have turned genetic data into a successful stream of current and long-term revenue. "Technology" is a profit centre with gene-based products the ultimate goal. Healthcare, a trillion-dollar a year business in the United States will be impacted by genomics products at every level.

indiamarkets: What would be the impact on the prices of drugs developed using gene therapy?

Inder Verma: Prices are driven by the cost of drug development and the competitiveness of large pharmaceutical players to tap drug product innovations for tomorrow. For example, companies calculate the cost of drug development as over US $ 600 million per new product approved for marketing in the United States with a model of 20 years of research for 12 years of exclusivity. One day is worth over US$ 1.7 million. When exclusivity is reduced to eight years, one day is worth over US$ 2.5 million. Thus, any investment less than US$ 2 million dollars that saves one day in product development is a profitable investment. There are over 450 sites reported to be developing genomics based products.

indiamarkets: Is research in Genomics changing the traditional drugs' market?

Inder Verma: Revolutionising markets are emerging from genomics. Biochip technology with the capacity to do hundreds of tests for hundreds of dollars versus thousands for one single gene assay. Pharmaceutical companies see this as a drive for gene-based drugs. Prices are driven by drug development cost and competitiveness of large pharmaceutical players to tap pipelines for tomorrow. Traditional drug discovery methods for medicinal chemistry of trial and errors are being displaced by combinatorial chemistry where thousands of compounds can be screened for each gene target in search for the perfect drug.

indiamarkets: What according to you are the road-blocks for bio-technology in India as compared to US?

Inder Verma: The biggest constraint for Indian biotechnology is the non-availability of adequate funding. Unlike IT, biotechnology deals with living creatures, which are therefore inherently more unpredictable than chips. It produces long-term rewards, not instant solutions and is capital-intensive. In the US, the biotech industry spent close to US$ 10 billion in research and development. In India, venture capital and angel fund investments in the IT sector have grown from Rs 70 crore in 1996 to Rs. 3200 crore in 2000. In contrast, funding in biotechnology is negligible. Lack of awareness and understanding of biotechnology and its long term potential by financiers is cited as the major reason.

In the US, biotechnology accelerated rapidly when scientists moved from academia to industry, patenting their discoveries. In India, biotechnology research is largely restricted to academia, and scientists are generally not aware of, or interested in the commercial potential. This, however, is beginning to change, with greater collaboration between industry and academic institutions.

Time and law are the major stumbling blocks. Four tiers of regulatory safety committees need to clear genetically modified products before they can be marketed. Every stage takes time. Patents rights has been a factor. India has also signed the WTO agreement and will provide patent protection by the year 2005.