Released on = March 21, 2007, 3:03 am

Press Release Author = Shushmul Maheshwari

Industry = Healthcare

Press Release Summary = CEO of Dr. Reddy's Laboratories, GV Prasa, forecasted that
preclinical trials and early-stage drug discovery is all set to become the next
booming service sector in India.

Press Release Body = GV Prasa, CEO, Dr Reddy's Laboratories, at the 13th Annual
Pharmaceutical Conference organized in London by the Economist told the delegates
that the landscape of drug discovery and development is fast changing in India.

Talking about the future of Indian companies operating in the field of contract
research and manufacturing, Prasa said the attempts made by firms to make more value
across the drug discovery and development chain will result in alliances that
provide these firms with critical mass and scale to take their drugs from labs to
the market.

In particular, many large Indian players who used to deal in generics-only have
started to develop their own R&D programs and several of these will certainly
diversify their operation to offer 'discovering services' on contract basis also as
experience, skills and capacity rise.

Some small players like Advinus Therapeutics, Connexios, Aurigene Discovery, and GVK
Lifesciences are already offering preclinical contract services in India.

Indian drug manufacturers are putting high stakes on worldwide pharmaceutical
outsourcing for their future growth. One estimate predicts worldwide pharmaceutical
outsourcing to stand at a whooping $35 Billion. Asian market is eyeing on a
significant share of it. Portion of India in the world pharmaceutical outsourcing
market is expected to surge substantially to $1 Billion from the existing level of
$400 Million.

RNCOS report "Indian Biotechnology Market Outlook (2006)" says that Biopharma
industry, consisting of therapeutics, vaccines, and other related products, will
come out as a critical segment of the Indian biotech sector. Following a growth rate
of 28.09% from 2005, the Indian biotech sector is anticipated to become a US$ 5
Billion market by 2010 end.

The market research report also highlights the total market size, trends in Indian
biotech industry, industry performance, and market segmentation. Apart from this,
the report provides an in-depth analysis on industrial biotech market, performance
of industrial biotech companies, and investments in Indian biotechnology sector. The
report brings forth the strengths and weaknesses of the Indian biotech market into
focus and discusses all the nitty-gritty of this sector.

About RNCOS:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

For more information visit: http://www.rncos.com/Report/Biotech14.htm
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