Indian pharma majors to pump in big investments into research
Hyderabad: Indian pharma industry is going through a lot of transformation and achieving scale. While export opportunities keep increasing, there is equal attention on strengthening the drug pipeline driven by research investments.
Speaking at the CEO Conclave at BioAsia on Friday, Ajay Piramal, chairman, Piramal Group said, the company is increasing its investments onto more complex technologies. “We have done an acquisition in Peptides last year and we have done investments in biologics. So, across the board, we are now increasing our focus on technologies and people,” he added.
Dilip Shanghvi, MD, Sun Pharma, said, “For short and medium terms, we will continue to invest on growing businesses across geographies like India along with the regulated markets of US and Japan but at the same time, we will also be making investments to bring new innovatory products to the markets. Currently it is between 7-9 per cent, but we are expecting to take it to 9-12 per cent in the next five years. And we are expecting to invest between $600-650 million on research.”
On the other hand, Zydus Cadila is aiming for close to 10 per cent research spends at the end of five years, Pankaj Patel, CMD, Zydus Cadila, informed.
GV Prasad, co-chairman and MD, Dr Reddy’s Laboratories, said, the US is an attractive, transparent, homogenous market which is intense in competition. Companies like Dr Reddy’s will look at increasing capital allocation to other emerging markets like India where the revenues and margins will be sustainable.
“Our research spends are already at 10-12 per cent. In that budget, we use two-thirds to support our current businesses and one-third to build the future in biologics or novel chemical entities,” Prasad added.
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