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Financial Institutions and Services

Notes

Caselet Govt. Plans 3,000 crores Venture Capital Fund for
Drug Discovery

Government is willing to look at the industry's demand for a single regulatory authority to do away
with multiple regulatory bodies.

The Government is planning to set up a 3,000 crores venture capital fund to give a fillip
to drug discovery and strengthen the pharma infrastructure in the country. The National
Institute of Public Finance & Policy (NIPFP) is set to finalise the bid document and the
expression of interest for setting up the find will be issued this month.
Speaking at the National Convention on Biopharma, organised by the Department of
Pharmaceuticals and FICCI, Mr Ashok Kumar, Secretary, Department of Pharmaceuticals,
said that the Government had issued an expression of interest for technical and financial
bids for the selection of a global level consultant (GLC) for preparation of a detailed
project report (DPR) for developing India as a drug discovery and pharma innovation hub
by 2020.
The selection of a consultant would be made this month and the report is expected to be
ready by year end.

Mr Kumar also said that the Government was willing to look at the industry's demand for
a single regulatory authority to do away with multiple regulatory bodies.
The biopharma market in India is growing at 15 per cent annually. By 2020, the market is
projected to be worth over $200 billions, driven by a shift in usage from conventional
drugs to biopharma products.

Mr. Kumar released the 'Vision 2020' paper on a bio pharma strategy for India, prepared
by PricewaterhouseCoopers and Association of Biotechnology Led Enterprises (ABLE).
The document spells out the challenges before the biopharma industry and suggests key
action areas. For the medium term, it suggests that in the area of research and development,
India would need to build protein characterisation laboratories and GLP-certified animal
study facilities; create a national animal breeding facility, expand viral testing facilities;
provide financial assistance for ensuring compliance with global standards; promote the
development of pro-clinical providers; provide practical support for clinical trials and
simplify the procedures for importing and exporting biologics.
As for the regulatory framework, the report states that it is imperative to simplify the
procedure for approving biologics; create an independent inspection facility and modify
the regulations on process validation.
The report states that if India was to become the world leading provider of affordable
biopharmaceutical products by 2020, it cannot simply count on biosimilars and vaccines;
it must also become a source of innovation.

More specifically, it should aim to have at least 10 original biologics on the local market
and at least two on the global market by 2020.

Source: http://www.thehindubusinessline.in
What is driving this VC investment boom? The most important fact is Indian GDP growth
coming within striking range of double-digits. Annual growth rates of 7-9% are unheard of in
mature western economies, and global investors want high returns. Furthermore, several key

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