Risk capital, R&D centric PLI scheme needed to boost pharma innovation: Industry
Hyderabad: Indian pharma needs to move from low-risk research and innovation to high-risk research and innovation. And that’s where the country is lagging. Investing in high-risk innovation is very capital intensive and the return on that investment is both uncertain and long-term. To aid innovation, there needs to be adequate risk capital and a different […]
Hyderabad: Indian pharma needs to move from low-risk research and innovation to high-risk research and innovation. And that’s where the country is lagging. Investing in high-risk innovation is very capital intensive and the return on that investment is both uncertain and long-term. To aid innovation, there needs to be adequate risk capital and a different PLI scheme that focuses on the opportunities for Indian pharma, point out experts at a panel discussion as part of BioAsia.
Kiran Mazumdar Shaw, executive chairperson, Biocon Group, said, “I do believe there needs to be a different PLI scheme that focuses on research and innovation. As a nation we need to start moving to large molecules or biologics – whether biosimilars, novel biosimilars, immunotherapies, cell, and gene therapies – these are the kind of moonshot areas we should aim for. I believe the PLI scheme was curated far too much for generic drugs. There should have been a greater allocation for biologics, biosimilars, cell and gene therapies which did not happen. Biocon applied for PLI, but we could not be eligible for Category A companies because we didn’t have that many ANDAs.”
PLI schemes need to evolve with time to support the industry to innovate. “One cannot invest without any incentives especially when we are also responsible for our shareholders. The pharma industry is unique in the gestational nature of the innovation. It is not like the other sectors where you can get the product out in one year,” she emphasised.
Satish Reddy, chairman, Dr Reddy’s Laboratories, said, “The government must pitch in to support R&D. From a venture capital point of view, they would invest when the risk is pretty much gone while they should be with us through the cycle and when you talk to them, they also make this point by expecting that there is a joint fund where the government also pitches in as it happens in Israel.”
In terms of VC investments, China is moving much ahead of the US. When it comes to Pharma R&D spending, the US is way above. China had a 1000-talent programme attracting the Chinese diaspora back into their country and it was done with a lot of involvement with the government, India can do something on this count provided we do something on the ecosystem. We could have good scientists come back and have their own startups with VC investments.
Sharvil Patel, MD, Zydus Cadila, said, “To achieve an 8-10 per cent of the value chain in the industry, we need to do some path breaking innovation. We need to do faster and adaptive clinical trials; we need a common specific procedure pathway like the USFDA set up for the disease areas which are very critical for the country and to see how we move forward with that.”
Sanjiv Navangul, MD & CEO, Bharat Serums and Vaccines, said, “Risk capital is the biggest issue we face in the country. Secondly, this sector has been the sunshine sector of the country in the last 30-40 years. We are a rare country where 50 per cent of the businesses are in India and 50 per cent is the exports. There is clearly a need for solid leadership from the government to ensure that we build a very strong R&D ecosystem.”
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