Business Daily from THE HINDU group of publications
Thursday, May 08, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Thursday, May 08, 2008 ePaper | Mobile/PDA Version | Audio |
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Industry & Economy
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Pharmaceuticals Web Extras - Research & Development Pharma cos need govt support in research: PwC Our Bureau Mumbai, May 7 Drug companies are not taking the risks required to produce innovative new therapies, due to the political and legal frameworks within which they operate across the world, says a pharma report by consultant firm PricewaterhouseCoopers. The public do not trust pharmaceutical companies and Governments want to keep medicine prices under control. This could virtually strangulate the efforts of drug companies, some years down the line, observed Dr Steve Arlington, Partner with PWC. When companies decide to develop certain prospective drug candidates, they do not know whether the drug would get reimbursement when it hits the market, the report observed. And in most countries they are not allowed to seek guidance from the relevant government agencies. Supportive IPR lawsGovernments should facilitate drug companies to do innovative research, he said, citing supportive intellectual property related laws as an example. Altering patent laws to recognise the value of long-term research, rewarding the development of vaccines and cures that are preventive in nature, for instance, would put the industry on a firm footing, the report said. There are two-thirds less medicines coming into the market, as compared to 10 years ago, Dr Arlington. On their part, drug companies too need to be more honest and economical, he added. The industry is investing twice as much in research as it was a decade ago to produce two-fifths of the new medicines it then produced, the report said. Pharma research processes have become more cumbersome and regulatory procedures have become more stringent, resulting in productivity tumbling. Companies are playing it safe, going in for line extensions of a known drug, as opposed to genuine break-through research, the report indicated. On the investment front, private equity firms are following the money, and as a result biotech firms steal a march over pharma companies. In India, PE firms are more interested in contract research organisations, as the benefits are tangible and without risk, he observed. Drug discovery and development on the other hand is fraught with risks. More Stories on : Pharmaceuticals | Research & Development
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