India poised to get $1.5bn foreign investment in pharma r&d by 2008
With its highly conducive investment atmosphere for pharma r&d and related services, India is set to attract foreign direct investments (FDI) to the tune of US$1.5bn in the period 2005-2008.
With its highly conducive investment atmosphere for pharma r&d and related services, India is set to attract foreign direct investments (FDI) to the tune of US$1.5bn in the period 2005-2008.
Though the country needs further improvements in its r&d infrastructure and in government policies in the areas of animal studies, clinical trials and labour laws, industry experts are hopeful of a much higher FDI flow into the country. This is mainly due to the emerging product patent regime and government initiatives for regulatory reforms.
The current r&d investment in the country is estimated at only $100-150m annually, compared with a global r&d spend of $60bn ($21bn in non-clinical research and $39bn in clinical research). If a portion of this r&d work currently scattered across the globe were shifted to India, total global spending could be reduced to just $15bn, considering the cost effectiveness and other service advantages the country offers, according to Dr Shoibal Mukherjee, senior director - medical, Pfizer Ltd.
'Ten per cent of this business could be shifted to India and it is an achievable target by 2008, provided the infrastructure and laws are set in place,' the experts suggested. Of this, about 25% of investment would be clinical research and the balance for drug discovery research activities, they added.