India to Become Global Pharmacy: Strong Generics Market boost R&D

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Recognising this opportunity, the Government of India is putting in place supportive initiatives with the goal of cementing the country’s position as the ‘pharmacy of the world’ and creating a global innovation hub. With generics predicted to rise to 35% of global pharmaceutical market value by 2016 (some $400bn+), and with an annual growth rate of 27% amongst Indian generics exports (comparing very favourably with the global average of 10%) the Government and Pharmexcil are forecasting much of this revenue will be reinvested across the country in new research- leading to a steady pipeline of future drug targets.

In support of this, the Indian Government has committed to three schemes including a major multi-billion dollar initiative with 50% public funding through a public-private partnership (PPP) model to harness India’s innovation capability. In addition, the Government has made tax-breaks available to the pharmaceutical sector and a weighted tax deduction of 150% for any R&D expenditure incurred. Additionally, they have also introduced 19 dedicated Special Economic Zones to help stimulate pharma sector investment across the country.

Pharmaceuticals Development Streamlined

Steps have also been taken to streamline procedures covering development of new drug molecules and clinical research- including two schemes ‘New Millennium Indian Technology Leadership Initiative’ and the ‘Drugs and Pharmaceuticals Research Programme’, which has been specially targeted at drugs and pharmaceutical research.

Already this year, India’s Dr. Reddy’s, Lupin Labs, Sun Pharma, Ranbaxy and Cipla have invested over $500million in R&D, which is allowing increased innovation in manufacturing processes and will ultimately help to lower the cost of medicines production.

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