New R&D Policy to boost drug discovery

New R&D Policy to boost drug discovery

• The Centre will soon unveil a new Research & Development (R&D) policy to boost drug discovery and the manufacture of medical devices in the country. 
• Alongside, numerous production­linked incentives are also on the anvil, including to the scientists involved in the process
• The government proposes to set up three major manufacturing parks including one in Hyderabad, with an investment of ₹1,000 crores each to help drive  import substitution of basic raw materials, active pharmaceutical ingredients (API) and the making of medical devices
• There had to be renewed focus on bringing together research institutions, academia, and the industry to identify new chemicals, update processes, and discover new drug delivery systems.
• Current approval processes were archaic and that there was a dire need to strengthen institutions and recognize scientists’ role in new discoveries, and to help them commercialize the projects so they too can ‘become millionaires’
• The Centre has so far received 13 requests for setting up the bulk drug parks.
• About 53 APIs had been identified for manufacture, of which 26 were being processed on a war footing, with results expected in 2­3 years. 

Production Linked Incentive Scheme (PLIS)

• Govt has already launched this scheme for mobile and medical gears AND govt is planning to extend this scheme for a few more sunrise (which has growth potential) sectors that have the export potential for example pharmaceuticals. 
• PLIS is implemented in a complex way and no need to go in detail in this scheme. But it is a very important scheme. So, let me give you an example of how it has been implemented for mobile phones.  
• If a company's sales of goods manufactured in India increases from a particular year (considered as the base year) then the Company will get an incentive of 4% to 6% on incremental/additional sales. For example, earlier a company was selling goods worth Rs. 1 lakh in a year and now its sales increased to Rs. 1.2 lakh. Then the company will get incentive of 4% of Rs. 20,000 = Rs. 800 (No detail available that in which form this incentive will be given and no need to know). There is a condition of additional investment in plant and machinery also under this scheme.
• Similarly, it is being implemented for the pharma sector also.
• Under this scheme for the pharma sector, around 53 active pharmaceutical ingredients (APIs) — covering 41 products — have been identified by the government, for which companies will be eligible for financial incentives, provided they set up indigenous greenfield manufacturing.

Fact: 

• The Indian pharmaceutical industry is the third-largest in the world by volume and 14th largest in terms of value. India contributes 3.5 percent of the total drugs and medicines exported globally. 
• Despite these achievements, India is significantly dependent on the import of some basic raw materials (from China), viz., bulk drugs, and APIs used to produce finished dosage formulations.

Source: The Hindu