Indian Pharma - Generic all the way and innovation out of the way?

India is poising itself to be the new Knowledge superpower. An economy which is dubbed as a knowledge economy with huge asset of English speaking educated people who can take India to the top. However, why is it then that we do not hear or read about any “new” path-breaking drug development from India? We have an estimated close to 20,000 pharma companies employing the “best” scientists/researchers/chemists etc.  In fact last few years have seen a “reverse brain drain” giving India back its lost scientists and researchers. So what pulls us back from innovating?

Well, there are many reasons behind it. But one of the most important reasons is the focus on generics rather than “innovative” research in the Indian pharma industry. It is easy for a pharma company to achieve a better return of investment with very little risk if they invest in generics. Big names like Ranbaxy labs which were into some good “research” completely re-focused themselves into generics business. Most big companies in India spend a penny on innovative research as compared to their western counterparts. This trend, though profitable for pharma may be disastrous for them in the long run and also for the country.

Drug discovery is a 'high risk and high return' business. But most small and medium level pharma being run by business families probably do not understand the importance of innovation. For most, it is how much do they get in return and how fast?!!!! I know of instances when reputed pharma companies recruiting scientists would ask questions like “can you develop XYZ in one year?” or “what do we gain from your academic experience, would it help us get our investment back?”  Questions like these not only show the hollowness of approach but also affect the morale of budding scientists as they also start to think everything in terms of investment and returns without actually thinking about innovation.  I am not in the favor of giving a lifetime deadline or a free run to scientists as well (as happens in most of our Government labs) but want to see a rational approach.

Moreover, unfortunately, we do not yet have the “Venture capital” mindset in drug discovery. Indian Venture capitalists are gung ho about investing in IT but see black when approached for investment in life sciences!!! There are few Indian companies that are trying to change that but they are constantly under undue pressure from their investors, who would have seen other IT start ups booming by the time a biotech/pharma drug discovery start up barely starts walking!!!!!!

In conclusion, penny wise pound foolish approach of Indian pharma industry would be detrimental for the overall growth of this sector in the long run if the mindset and approach is not overhauled!