Budget may announce R&D policy for pharma sector

Aiming to shore up India’s capabilities as the so-called ‘pharmacy of the world’, the department of pharmaceuticals has proposed three components to this policy. First, it has suggested an inter-departmental research council, like the ICMR, to undertake research related to the pharma sector, according to an official familiar with the matter. The research will be on “pharma and drug type”.

Secondly, the department has proposed a Centre of Excellence at the National Institutes of Pharmaceutical Education and Research (NIPERS)—pharma schools for postgraduate and doctoral study at Ahmedabad, Guwahati, Hajipur, Hyderabad, Kolkata and Raebareli.

Thirdly, under the policy, a dedicated system and research grants support will be set up.

While India is known for affordable generic drugs, research and development is a key area that needs attention in the Indian pharma industry, accounting for two-thirds of the global pharmaceutical opportunity.

As proposed, the inter-departmental council will focus on R&D in both communicable and non-communicable diseases.

This will be a platform for innovation, diverse skill sets, academia and stakeholders of pharmaceuticals/bio-pharmaceutical and aims to ensure the synergy between stakeholders across the product innovation pipeline.

“There is a need to align current pharmaceutical R&D focus in line with the disease burden of the country and meet evolving priorities such as drug security, resilience in value chains and building domestic capacities,” said the official. “Establishing an inter-departmental research council on pharma and medtech will help to catalyze, facilitate and promote collaboration across industry, academia and research institutions,” the official said. Industry experts welcomed the proposed move saying it could boost domestic and international collaboration in research and development.

“Research and development are very important for the pharma industry because it is a knowledge-driven sector. Right now, we are doing good in the generic medicines, but we need to move ahead. There is significant competition from the branded generic market. R&D policy is a required and high priority area because the cost of doing R&D is very high,” said Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance (IPA). “In countries like the US, Israel and UK, the government is supporting research, and at the same time, investment should be high. There should be a mechanism for funding research in the pharma sector,” he added. Queries sent to the department of pharmaceuticals spokesperson did not elicit any response.

According to data available, R&D makes up a tiny 7% of the overall expenditure by the Indian pharma industry, compared to over 35% spending in R&D in China and US.

Indian drugmakers are known for producing cheap generic drugs and supplying them to developing and developed countries, proving to be a lifesaver in health emergencies such as covid-19. However, two Indian drugmakers came under a cloud this year after being accused of making toxic cough syrups linked to the deaths of 66 children in Gambia and 17 children in Uzbekistan.