Genomics industry

May 2013

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Genomics Industry Analysis

A genome is the complete set of genetic materials, found in the nucleus of each cell. It contains the
master blueprint for all cellular structures and activities for that organism. Majority of noncommunicable diseases can be predicted using genetic patterns by means of a simple saliva test.
Genomic data available through genotyping can then be used to screen for SNPs that are
associated with high risk of cardio-vascular disorders.
Genetics plays a crucial role in onset of diseases, response to drugs and trait determination. Yet,
its utilization in clinical diagnostics to prevent/postpone diseases is minimal in India due to various
reasons. The human genome carries a wealth of information about us and can be used to predict
onset of health disorders. However, there are a few challenges in this, viz.:
Economies of scale have not yet permeated gene sequencing
While correlations can be established between SNPs and disease outcomes, there are other
factors that are still not fully understood, such as lifestyles & habits

Genotyping
~300,000
characters

Exome
Sequencing
~1 Mn characters

Whole
Genome
Sequencing
~3 Bn characters

Major Classifications of how to achieve genomic data:

Genotyping: It is the process of determining differences in the genetic make-up (genotype) of

an individual by examining the individual's DNA sequence using biological assays and
comparing it to another individual's sequence or a reference sequence. It reveals the alleles
an individual has inherited from their parents. Traditionally genotyping is the use of DNA
sequences to define biological populations by use of molecular tools. It does not usually
involve defining the genes of an individual.

Exome Sequencing: It is is an efficient strategy to selectively sequence the coding regions of

the genome as a cheaper but still effective alternative to whole genome sequencing.

Whole Genome Sequencing: It is a process that determines the complete DNA sequence of
an organism's genome at a single time. This entails sequencing all of an organism's DNA.

A majority of non-communicable diseases can be predicted using genetic patterns by means of a

simple saliva test. The saliva test is completely non-invasive and safe, and DNA extracted from
saliva can be used to determine allelic information of an individual using optimized high-throughput
genotyping techniques that are commercially available. Additionally, several people react to foods
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differently. Based on genetic markers, one can identify how an individual metabolizes fats,
carbohydrates, etc.
Cost of Whole Genome Sequencing (WGS)
$350,000

2007

$60,000 - 100,000

$50,000

$999

2008

2010

2011

2007 - Knome debuted the first direct-to-consumer genome sequencing service at an initial price
of $350,000 (including analysis).
2008 - Illumina announced that it had sequenced an individual genome for $100,000 in reagent
costs. Applied Biosystems countered by saying the cost on its platform was $60,000.
2010 - Illumina introduced its individual genome sequencing service for consumers, who were
required to present a doctor's note. The initial price was $50,000/person.
2011 - 23andMe announced it would begin offering the $999 exome to existing clients.
Global Scenario
The global genetic testing market continues to record strong growth, and is forecast to maintain an
annual growth rate~18% to reach $10 billion in 2015, with the cancer testing market segment
accounting for nearly a quarter of this market. The U.S. Government has invested over $3.8 Bn in
the Human Genome Project since the early 1990s to drive research in this area. This has lead to
over $796 Bn in economic impact over the years, and in 2010 along, the research in this area
generated over $67 Bn in economic output, and supported over 310,000 jobs - both indirectly and
directly. Pharmacogenomics represent the most profitable segment within the genetic testing
market.

Source: Booz, Allen, Hamilton

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Bio-banking is expected to record a yearly growth rate of almost 8% to reach almost $24 billion in
2015. North America dominates the market with over 30% share in the overall market. However,
both China and India are recording higher growth rates than that of the US.
The global biomarker industry had an estimated worth in excess of $13 billion in 2011 and the
growth is expected to exceed 14% to bring market worth to almost $26 billion in 2016. North
America dominates the global biomarker market, followed by the EU. This growth is given impetus
by an aging population, increasing cases of both genetic and chronic diseases, and rising
molecular diagnostics demand.
The world bioinformatics market is expected to exceed $7.5 billion by 2017, up from under $2.5
billion in 2011. Bioinformatics formed the basis of a database containing biological information,
which detailed matters of design and the development of complex interfaces.
The growth drivers for the industry are:
Increasing awareness among the public on the benefits of preventive healthcare and genomics
in specific
The media has started promoted healthy living, encouraging people to prevent diseases
Incertain countries, genomic application has dramatically eased food problems. In healthcare,
genomics enhanced both prevention and treatment making treatment more affordable.
Domestic Scenario
Healthcare industry is one of the largest sectors in the country with estimated revenue of around
$30 billion, constituting 5% of GDP and offering employment to over 4 million people, according to
CII.
A few health facts:

India faces a potential diabetes epidemic with the number of diabetics expected to
increase from 61.3 million in 2011 to 101 million by 2030.

Studies estimate that nearly 14% to 22% of the Indian population falls in the prediabetic condition, suggesting that pre-diabetes is more prominent in the Indian
population than type 2 diabetes.

By 2020 India will have more than 4.77 million deaths a year due to cardiovascular
disease (CVD) and 2.58 million deaths due to coronary heart diseases (CHD). About 25
per cent of deaths in the age group of 25- 69 years occur because of heart diseases. In
urban areas, 32.8 per cent deaths occur because of heart ailments, while this
percentage in rural areas is 22.9.

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Global Cost of Cardiovascular Diseases (2010-2030)

$ 9 Tn
$ 11 Tn

Other Costs of of Cardivascular Diseases

Productivity Loss due to diseases

Overall Prevelance of Diseases per 1,000 Population (India)

Diabetes

Hypertension

Ischemic Heart Diseases

Stroke
0

50.0

100.0

150.0

200.0

Market Potential for Genomics in India

The genomics industry in India is very nascent and is just starting to grow. It is at the same stage
that internet was in 1995, when the internet was exclusively the purview of governments,
industries, universities and private parties. There was then an exponential growth less than a few
million users in 1995 to over 2.5 Bn users in 2012 (which is only 35% of the total world population).
The genetic industry globally is very nascent, and it is even more so in India.
According to a recent survey, India's loss of annual income from non-communicable diseases was
greater than $22.7 Bn. More than 8% of households are pushed below poverty line each year due
to health expenditure and 40% of the low and middle income population borrow money or sell
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assets to pay for hospitalization. Under such circumstances, the best answer for noncommunicable diseases is prevention through early and correct diagnosis.
Clinical diagnostics is one of the fastest growing sectors in the country, and is expected to cross $2
Bn by FY14. There is a paradigm shift from master health checkups to preventive healthcare, and
the preventive healthcare sector in India is currently growing at a growth rate of 25%. The key
growth driver for this sector going forward is expected to be the retail genomics space.
The market potential for retail genomics is substantial and includes all urban adults who undergo
regular medical check-ups, fitness enthusiasts, etc. With increasing awareness regarding benefits
of leading a healthy lifestyle is increasing among affluent Indians, this market is expected to grow
rapidly

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