Biotech industry urges Centre to launch research linked incentive scheme similar to PLI scheme
New Delhi, August 23, 2021:
The biotechnology industry has sought the Central government to come up with a research linked incentive scheme, similar to the production linked incentive (PLI) scheme it launched for the pharmaceutical manufacturing industry, to help innovation and growth of the biotech industry.
Kiran Mazumdar-Shaw, executive chairperson, Biocon Limited, and non-executive chairperson of Association of Biotechnology Led Enterprises (ABLE), in a recent CII event, requested Mansukh Mandaviya, minister of health and family welfare and chemicals and fertilizers, that the government should provide R&D support in the form of research linked incentive scheme in areas such as biosimilars and biologics.
“The research and development in this field requires huge investments and such a scheme would help the industry to grow stronger,” she said. It could help the industry in increasing its investments into innovation and R&D.
The biotechnology industry needs huge investments in terms of development of a biological molecule both in terms of money and time. The clinical study itself could take over five to seven years, which is significant for the industry.
The country has been playing an important role in the global industry with its strength in generic medicine manufacturing and has been growing strong in the vaccines and biologics sector. The biotech industry has been looking for a research incentive to help the private sector research.
The Government of India has approved the PLI scheme for pharmaceuticals on February 24, 2021, estimating an export generation potential of Rs. 1,96,000 crore over a period of six years. While this has partly supported the bio pharmaceutical industry, it was mainly a production linked incentive and had no connection to the investments made into R&D. The Scheme is estimated with an investment potential of around Rs. 15,000 crore and the generation of employment potential of 20,000 direct and 80,000 indirect jobs.
The first PLI scheme was announced on July 21, 2020, for promotion of domestic manufacturing of critical key starting materials (KSMs)/drug intermediates and APIs in the country with a financial outlay of Rs. 6,940 crore. It has also announced a PLI scheme for promoting domestic manufacturing of medical devices. It has also announced schemes for promotion of bulk drug parks and medical devices parks, among others to promote the industry in the country to decrease its imports and grow exports.
Mandaviya, in July this year, has said that the PLI scheme for pharmaceuticals is estimated to have the export generation potential of Rs. 1,96,000 crore over a period of 6 years in all the three categories of products under the scheme which includes high value products as well. PharmaBiz