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To improve healthcare financing and pharmaceutical innovation, the Federation of Indian Chambers of Commerce and Industry (FICCI) has sought policy intervention from the government.
In its latest paper, ‘Reshaping India into a life sciences innovation hub’, released on Thursday at Mahatma Mandir in Gandhinagar, FICCI has recommended that the government create a model to incentivise venture funding in high-risk innovation areas of life-sciences R&D and the institutionalisation of innovative financing models.
India has come a long way in becoming a hub for manufacturing and supply of generic drugs since the patent reforms in 1970 and is today touted as the pharmacy of the world.
“While India is lauded for its drive and efforts in becoming the pharmacy of the world, the country is still at a nascent stage in terms of its activities in commercially oriented R&D and innovation. Despite being the third largest seller of medicines in the world, India has been able to produce only a handful of novel commercially viable drug molecules,” the report noted.
Risk-sharing models
FICCI wants the government to ensure availability of finance for research and purchase of medicines, and also to create risk-sharing models to incentivise PE/VC funds for making investments in high-risk life sciences R&D for long-term. For life-sciences research, FICCI has suggested that the government adopt innovative financing models such as debt-type instruments that may be institutionalised by partnering with major banks.
The paper, prepared with support from global knowledge leader Ernst & Young (E&Y), also suggests that the government establish a top-down governance structure and create Centres of Excellence (CoEs) for the segment.
It has recommended enabling access to quality infrastructure and talent, besides creating a sound and effective IP, legal and regulatory framework to protect the innovations and facilitate knowledge transfer.
Underlining the importance of government support to boost innovation in the emerging areas of biosimilars and biologics, the paper recommends streamlining and fast-tracking the regulatory approval process.
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