The Center has announced a Rs 5,000-crore Research-Linked-Incentive (RND) scheme for the pharmaceuticals and med-tech sector to strengthen research infrastructure in the country and promote more industry-academia linkages for research and development (R&D). Started the plan.
The government feels that with the right growth enablers, the Indian pharma industry can capture 5 per cent of the global market share by 2030, from 3.4 per cent now.
The scheme has two components; First, to strengthen research infrastructure by setting up Centers of Excellence at the National Institute of Pharmaceutical Education and Research (NIPER). The Centers of Excellence will strengthen research infrastructure in the pharma and med-tech sectors by providing advanced facilities to conduct research and help nurture the talent pool by promoting industry-academia linkages, the Ministry of Chemicals and Fertilizers said in a gazette notification on August 16. Will help Its outlay is Rs 700 crore over a period of five years.
The second component pertains to the promotion of research in the pharma and med-tech sector in six priority areas. The first product area is for new chemical or biological or phytopharmaceuticals (natural) entities. Further product areas include complex generics, precision medicine (targeted innovative therapeutics), medical devices, orphan drugs (drugs for rare diseases), and drug development for antimicrobial resistance (AMR).
The Center said priority will be given within and between categories based on future prospects, opportunities and national importance. The total outlay of the scheme will be Rs 5,000 crore over a period of five years from 2023-24 to 2027-28.
The funds disbursed for the projects will be recovered by way of royalty or profit sharing through equity. The government can take a royalty of 10 per cent on the net sales of the product or technology, or take equity till the patent is in force.
The Center said that the Indian pharma industry holds 3.4 per cent market share in the global pharma industry. If the industry adopts a business as usual approach, the market value will grow to $108 billion by 2030 at 11 percent CAGR.
Meanwhile, the global pharma market is expected to grow to $3206 billion by 2030. India can achieve 4 per cent share in the global market reaching a market size of $130 billion and 5 per cent share at a market size of $160 billion, provided the focus is on growth drivers. ,
Similarly, the market size of medical devices in India is estimated to be $11 billion (around Rs 90,000 crore) in 2020 and its share in the global medical device market is expected to be 1.5 percent with a CAGR of 10-12 percent. last decade.
Indian pharma industry is largely confined to generic drugs where they are holding global leadership. “In the financial year 2021, the investment in R&D by the top 10 Indian pharma companies was about 7.2 per cent of their sales. The notification states that there is a need to increase R&D expenditure in the country by further promoting research and innovation.
Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance (IPA), said: “This is a very important milestone for moving up the value chain and catalysing innovation in the pharma industry. Funding, regulatory simplification and industry-academia collaboration will facilitate the entire ecosystem for R&D in the country.