India is expecting nearly ₹17,000 crore of investment towards R&D in the pharma sector by FY28, covering segments such as cancer research, lifestyle disease prevention, med-tech and devices making, and niche segments like orphan drugs and development of new chemicals, Amit Agrawal, Secretary, Department of Pharmaceuticals under Union Ministry of Chemicals & Fertilizers, told businessline.
The nearly ₹5,000-crore Scheme for Promotion of Research & Innovation in Pharma MedTech Sector (PRIP) is likely to see the first set of disbursals happening towards the end of this year,
“Government will either pick up equity in these selected projects or look at a fund infusion with a milestone based approach,” he said.
The Expression of Interest (EoI) under the Scheme has been floated with the first deadline, April 7, primarily covering stakeholder feedback. Selection of suitable projects are likely to be completed by April-end to early-May, while first round of disbursals could be “max six months later”.
“The PRIP Scheme has been launched to transform India into a global powerhouse for R&D in the Pharma MedTech sector. The scheme has a total financial outlay of ₹5,000 crore, of which ₹4,250 crore is focused on accelerating investments in the R&D ecosystem within the sector,” Agrawal said.
“The scheme will attract around ₹17,000 crore of additional investment in R&D in priority area. And we are anticipating launch of 30 products or technology in the market by end of five years (FY28),” he added.
Pan-India roadshows and stakeholder meetings have also been planned.
Funding breakup
The funding has been broken up into various components. The first component – with a ₹700 crore outlay – is already implemented, including the setting up of Centre of Excellences in NIPERs (National Institute of Pharmaceutical Education and Research).
Seven such institutes – one each in Mohali, Ahmedabad, Hajipur, Hyderabad, Kolkata, Guwahati and Rae Bareli – are operational across various categories that include anti-viral and anti-bacterial drug development, medical devices, bio-therapeutics, bulk drugs R&D, flow chemistry and continuous manufacturing, phtyo-pharmaceuticals and novel drug discovery.
Component B, is sub divided into three further categories primarily covering areas relating to promoting research and innovation in pharma and med-tech including six major areas – new chemical and biological entitites and phyto-pharmaceuticals; complex generics and bio-similars, precision medicines – stem cell and gene therapies and biomarkers – used for cancer treatment, orphan drugs (for rare diseases), and drug development for anti-microbial resistance.
Under the first category of component B, which will cover established Indian pharma companies willing to collaborate with academia, funding will be for 9 projects with a max government support of 35 per cent or ₹125 crore for each, whichever is lower.
The second segment of Component B, where 30 projects will be selected with each having a maximum support of 35 per cent or ₹100 crore (whichever is lower), will cover those that require higher support level to bring products at a commercial or marketable stage.
And in the third category, for projects by research oriented companies, MSMEs, start-ups, funding will be for the initial stages at ₹1 crore each for 125-odd projects. Funding will be for a five-year period, and milestone based.
“We may look at extending the timelines if required,” Agrawal said.
