Biotechnology industry worldwide is poised to achieve profitability by 2010, offering an opportunity to Indian companies to strike alliances with global firms, even as lack of angel funding proved to be the "biggest bottleneck", according to a study by Ernst & Young.

The industry would achieve profitability, if regulatory issues are dealt with "effectively" over next few years, Ernst & Young said in its study -- 'Beyond Borders: The Global

Biotechnology Report 2003' -- which was released by Maharashtra Chief Minister Sushil Kumar Shinde in Mumbai on Thursday.

The industry worldwide is struggling due to prolonged capital market depression, but despite the challenges its fundamentals are strong, the study added.

Commenting on the Indian biotech industry, Ernst & Young India head (health sciences industry practice) Utkarsh Palnitkar said, "global alliances and harmonisation is the key to market success".

India has an advantage of being blessed with a scientific temperament, and this coupled with a wide existing network of centres of excellence in biotech-related research, provides it with a great opportunity, Palnitkar said.

He, however, said lack of angel funding or seed capital, which is the primary need of the start-ups, continues to be the biggest bottleneck for the country.

The investments would start flowing in by 2005, once the Intellectual Property Rights is cleared, he said, adding contract research is one of the biggest opportunities for India.    

Contract research would boom as a bigger pie of globally outsourced R&D is diverted to India, the study said.