The government is making a bold move to propel India to the forefront of pharmaceutical and medical technology research and development. Seeking expressions of interest (EoI) for innovative projects in medicine, the focus is on developing cutting-edge technologies for both communicable and non-communicable diseases. The Department of Pharmaceuticals, under the Ministry of Chemicals and Fertilizers, has initiated this call for proposals under the scheme known as Promotion of Research and Innovation in Pharma MedTech Sector (PRIP).
Transforming India into a Global R&D Hub
With a significant financial commitment of ₹5,000 crore, PRIP aims to position India as a global powerhouse for research and development in the pharmaceutical and MedTech sectors. This ambitious endeavor consists of two key components designed to drive innovation and investment in the industry.
The first component, with an outlay of ₹700 crore, focuses on establishing Centers of Excellence (CoEs) at seven National Institutes of Pharmaceutical Education and Research (NIPERs). These centers will concentrate on various areas such as anti-viral and anti-bacterial drug discovery, medical devices, bulk drugs, phyto-pharmaceuticals, and biological therapeutics. Already, CoEs have been set up at all NIPERs, signaling a proactive approach to kickstart these important initiatives.
Accelerating Investments in R&D
The second component of PRIP, with a budget of ₹4,250 crore, aims to bolster investments in the research and development ecosystem. This segment will provide financial support to companies engaged in R&D activities, particularly in priority areas like drug discovery and development, medical devices, stem cell therapy, and treatments for drug-resistant patients. Amit Agrawal, Secretary of the Department of Pharmaceuticals, emphasized that while the funds will primarily benefit the industry, collaborations with academia are also encouraged to foster a robust research environment.
Amit Agrawal remarked, “India’s expertise in complex generics and biosimilars is well-established, but there is a pressing need to expand into new frontiers such as new biological and chemical entities, organ drugs, precision medicine, and drug development for anti-microbial resistance.” This strategic shift aims to elevate India’s global standing in pharmaceutical research and development.
The Indian pharmaceutical industry currently holds a 3.4% market share globally, with projections indicating significant growth potential. By 2030, the industry could reach a market value of approximately $108 billion, provided there is a sustained focus on innovation and R&D efforts. While India has excelled in generic drugs, the country’s R&D expenditure in the pharmaceutical sector remains modest compared to global leaders like the US and China.
Under the PRIP scheme, established companies can secure funding of up to ₹125 crore, while startups are eligible for funding up to ₹1 crore over a five-year period, based on their developmental milestones. Agrawal emphasized the importance of a thorough evaluation process that considers the public health impact, success prospects, and overall industry participation.
As the deadline for EoI responses approaches on 7 April, discussions with government departments and industry stakeholders are slated to refine the scheme’s operational details. The application process is expected to commence by late April or early May, marking a crucial step towards advancing India’s pharmaceutical and MedTech research landscape.
India’s pharmaceutical market for the fiscal year 2023-24 is valued at $50 billion, with substantial contributions from domestic consumption and exports. Despite its significant global presence, industry experts underscore the need for increased R&D spending to foster innovation and explore new avenues for growth.
Rajiv Nath, Forum Coordinator of the Association of Indian Medical Device Industry (AiMeD), highlighted the importance of balancing focus between the pharmaceutical and medical device sectors. Meanwhile, Sudarshan Jain of the Indian Pharmaceutical Alliance commended the government’s initiative, emphasizing the industry’s readiness to engage with the scheme and drive research to new heights.
In conclusion, the government’s call for proposals signals a pivotal moment for the Indian pharmaceutical and MedTech sectors. With a strong emphasis on research, innovation, and collaboration, this initiative aims to reshape the industry landscape and position India as a global leader in pharmaceutical and medical technology advancement.
