Indian pharma's global R&D surge: companies eye US and Europe for innovation

New Delhi (The Uttam Hindu): More Indian pharmaceutical companies are set to establish dedicated research and development (R&D) units in foreign countries, particularly in the US and Europe, according to a report released on Tuesday. The report by GlobalData, a data and analytics firm, indicates that Indian pharma companies are increasingly focusing on innovative research and development. Traditionally, leading Indian drugmakers like Sun Pharma and Dr. Reddy's have executed their R&D activities in India, often through dedicated research entities abroad. However, the trend is shifting. Prashant Khadayate, Pharma Analyst at GlobalData, explained that demerging R&D units into separate companies helps parent firms manage risks associated with research project failures without impacting their core business's profit and loss. It also facilitates easier fund-raising from investors.

Several Indian pharma companies have already set up dedicated R&D firms in major markets like the US and Europe. Examples include Zydus Lifesciences, Glenmark Pharma, Alembic Pharmaceuticals, and Suven Life Sciences. According to GlobalData’s Pharmaceutical Intelligence Center, as of December 20, 16 drugs in the pipeline, ranging from Phase I to Phase III, belong to companies based in the US or Europe, with two drugs currently in Phase III. Khadayate highlighted that these Indian companies are benefiting from local talent in these regions, and their promising drug pipelines could yield significant rewards. He anticipates that more Indian firms will follow the lead of these successful companies, helping them advance in innovative R&D and expand their presence in the global market for innovative drugs.