6 Reasons Why This is the Perfect Time to Invest in Pharma R&D
India has always been one of the largest exporters of generic drugs particularly for the US. However the landscape has changed in recent years, as India is now emerging as a global hub for pharmaceutical R&D.
This is partly because large companies such as Zydus, Advinus, Wockhardt, Cipla and Dr Reddy’s Labs have substantially started investing in pre-clinical development. But this is not it. The government has also started taking initiatives to promote India as the hub for Pharma R&D.
Are you a Pharma R&D professional? Considering a career or business opportunity in this field? Then this article is a must read.
Initiatives taken by government to encourage pharmaceutical R&D in India.
1. Joining The World Trade Organization
This is perhaps the most important step taken by the government. A new patent law was signed as a part of joining the World Trade Organization. As our patented innovations were recognized by the world this move acted as a great incentive to innovate more. Pharmaceutical patents by resident Indians has doubled ever since this move. Moreover, many MNC’s have invested in R&D due to this step.
2. Greater Investment In Pharma R&D
To have India in the top 5 pharmaceutical innovation hubs list by 2020 the Indian government has prepared to invest billions of dollars
With 50% public funding through public private partnership model. This is basically to enhance innovation capability.
3. India’s Global Stand
With increasing number of companies investing and the government intervention, India plans to launch 1 out of every 5-10 drugs discovered in India at a global level.
4. FDI For Pharma Innovation
The Indian government has allowed 100% Foreign Direct Investment under automatic route
Which means investments coming from foreign countries wouldn’t require no prior permission to invest in the pharmaceutical sector.
This has in turn positively impacted the pharma R&D as companies have more access to funds. This has also increased the creation of IPR.
5. Tax Benefits For the R&D
Sector Another initiative taken by the government to promote R&D is the tax breaks in the pharmaceutical sector. There is a weighted tax deduction at the rate of 150% for research and development expenditure incurred. Initiatives to streamline the process of creating a new drug molecule or clinical research is also underway.
6. No Licence Needed
This is great move taken to promote investments in pharmaceutical industry. You don’t need to have an industrial license for pharmaceutical products. Hence, drug manufacturers can freely develop any drug they want provided its approved from the drug control authority.
Moving forward, it is expected that the Indian government will continue to grow its efforts in increasing India’s domestic pharma R&D market. It is also expected that large-scale actions will be taken to provide Indian innovators with the necessary means to compete with the best pharmaceutical innovators in the world.
Pharma R&D is not easy. But with growing opportunities and advancement in technology, it is definitely one of the most lucrative, up-coming fields in India.
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