Government Seeks Expressions of Interest for Pioneering R&D in Pharma and MedTech

The emphasis will be placed on drug discovery for hypertension, lung conditions, cancer, diabetes, and rare diseases. The EoI has been released by the Department of Pharmaceuticals, under the Ministry of Chemical and Fertilizers, as part of its initiative known as the Promotion of Research and Innovation in the Pharma MedTech Sector (PRIP).

PRIP aims to position India as a global leader in R&D within the pharmaceutical and MedTech sectors, with a total investment budget of ₹5,000 crore, split into two key components.

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The first component, allocated ₹700 crore, intends to establish Centres of Excellence (CoEs) at seven National Institutes of Pharmaceutical Education and Research (NIPERs). This initiative will concentrate on anti-viral and anti-bacterial drug development, medical devices, bulk drugs, phyto-pharmaceuticals, biological therapeutics, and more. CoEs have already been established at all NIPERs, and work is underway.

The second component, with a budget of ₹4,250 crore, aims to boost investment in the R&D ecosystem.

Through this component, the government will support companies engaged in R&D focused on priority areas such as drug discovery and development, medical devices, stem cell therapy, and treatments for drug-resistant patients.

Amit Agrawal, Secretary of the Department of Pharmaceuticals, stated, “All funding will go directly to the industry, but firms may collaborate with academia. The government will provide financial support to enterprises to enhance R&D efforts. India currently excels in complex generics and biosimilars, but it is crucial for the nation to prioritize new biological and chemical entities, organ drugs, precision medicine, and solutions for antimicrobial resistance.”

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At present, India holds a mere 3.4% share of the global pharmaceutical market. If the industry continues on its current trajectory, its market value is projected to reach approximately $108 billion by 2030, growing at a CAGR of 11%, according to government estimates.

India’s pharmaceutical sector has predominantly remained centered around generic drugs, where it enjoys global dominance. Nevertheless, the overall investment in pharmaceutical R&D in India is estimated at only $3-5 billion annually, in stark contrast to the $50-60 billion invested in the US and $15-20 billion in China.

According to the scheme’s outline, larger companies can apply for funding up to ₹125 crore, while startups can seek up to ₹1 crore, contingent upon meeting specific milestones over a span of five years.

Agarwal remarked, “At this point, we are not making premature judgments. We will adopt a rational evaluation approach, similar to that used by the Department of Biotechnology. We will assess public health value, chances of success, and impacts based on various criteria. This EoI will provide insight into industry perspectives and levels of engagement. In the near future, we plan to convene meetings with other government agencies and industry representatives to discuss the functionalities of the scheme.”

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“The deadline for submitting EoI responses is April 7, and the application process will commence at the end of April or the beginning of May,” he noted.

India’s pharmaceutical market for FY 2023-24 is estimated at $50 billion, with domestic consumption at $23.5 billion and exports totaling $26.5 billion. It ranks as the third-largest market globally by volume and 14th in value. More than half of its exports cater to highly regulated markets such as the US, EU, and Japan.

Experts emphasize the urgent need to enhance R&D investments in the country by fostering research and innovation initiatives. There is a pressing requirement to pivot toward new sectors that will shape the future trajectory of the pharmaceutical industry.

Rajiv Nath, Forum Coordinator of the Association of Indian Medical Device Industry (AiMeD) stated, “The government has not given adequate attention to the medical device sector and is primarily concentrating on pharmaceuticals. We aim to discuss this with the government and push for amendments.”

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“This initiative represents a significant step forward to elevate the pharmaceutical industry, as research is the next crucial challenge to tackle. The industry is fully ready to engage in this scheme,” asserted Sudarshan Jain from the Indian Pharmaceutical Alliance.