Infrastructure, policy and clinical trials are major bars to innovation in India

Published: 23-Oct-2013
Regulatory Patient Experience

New report report recommends that the Indian government fix and clarify relevant policies and regulations around clinical trials and IP


Amid serious concerns among US businesses and lawmakers over intellectual property protection in India, a new report says clinical trials, infrastructure and policy are the biggest obstacles in driving research and development innovation at scale in India's healthcare sector.

While both global and Indian industry leaders opine that India's intellectual property (IP) situation needs to be addressed and clarified, they have highlighted that in fact clinical trials, infrastructure and policy are the biggest obstacles for India to meet its potential of driving R&D innovation at scale, noted the report.

The McKinsey report, commissioned by the USA-India Chamber of Commerce, was released at the US-India BioPharma and Healthcare Summit 2013 in Boston recently. Attended by top pharmaceutical companies, academicians, scientists and officials from both India and the US, the event focused on therapeutic areas of oncology and infectious diseases.

Indian companies need to shift from 'deals' that offer only cost arbitrage to alliances that focus on innovation, quality and service

Biopharma innovation is gaining ground in India, said Karun Rishi, president of the USA India Chamber of Commerce. The findings of the report are meant to help senior management of biopharma companies fine tune their R&D strategy and help leverage India's pockets of R&D strengths, he added. According to excerpts of the report, many global R&D heads and CEOs emphasise the need for Indian companies to shift from 'deals' that offer only cost arbitrage to alliances that focus on innovation, quality and service.

The report notes that emerging markets such as India can play a significant role in collaborations, providing not only more cost-effective innovation, but access to new talent, technologies and assets to fill currently dry drug pipelines.

The Indian healthcare sector has tripled in size in the last decade from US$23bn in 2002 to $70bn today, but India continues to lag behind peer countries in spending, outcomes, health manpower and infrastructure.

Within healthcare, the Indian pharma market has also shown strong growth from $6bn in 2005 to $18bn at present, and is expected to grow to $45bn by 2020.

The report noted that India holds a vast and largely untapped pool of drug innovation resources and capabilities. Dr Ajay Dhankhar, a senior McKinsey partner and leader of its global R&D practice, said the report recommended that the Indian government fix and clarify relevant policies and regulations around clinical trials and IP and focus on cross border and cross entity collaboration on building talent and infrastructure across clinical trials, PI training and basic research.

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