Budget could include Research-Linked Incentive scheme to fast track pharma growth: OPPI President

New Delhi: “Would like to congratulate the government on the Union Budget 2022-23 tabled by the Finance Minister that has significant announcements aimed at infrastructure development, inclusive growth, productivity enhancement and impetus on digitization opportunities,” says Sridhar, President, OPPI and Managing Director, Pfizer Limited on the budget announcements.

The allocation for the health sector highlights commitment towards universal access to healthcare through the rollout of the National Digital Health Mission and the National Tele-Mental Health Program. While it is truly a growth intensive ‘Amrit kaal’ budget, focused on increased investments and allocations at a foundational stage, additional thrust on R&D and investment would help sustain sectoral growth.

While the government’s thrust on PLI augurs well for the sector and the country at large, the dependence on imports for APIs and bulk drugs continues to be a challenge. There is a need to consider the introduction of an ‘RLI Scheme’ – Research-Linked Incentive Scheme, which will accelerate an atmanirbhar ecosystem for end-to-end development of pharmaceuticals – from bulk drugs to finished formulations.

The government could also explore a 200% weighted deduction and a separate allocation for R&D in biopharmaceuticals for companies making investments to undertake research for new drugs, chemical entities and/or new biological entities to combat outbreaks. This would further augment foreign investments in R&D.

“Such measures could be explored in future allocations or as a series of mini-Budgets which will enable strategic growth within a conducive regulatory ecosystem, which will be key to a healthier future for all,” concludes Sridhar.