Pharma Start-ups, MSMEs To Get Up To Rs 50 Cr For Early-Stage Drug Discovery

New Delhi, Oct 1 (KNN) The Department of Pharmaceuticals (DoP) is set to provide critical gap funding to start-ups and micro, small and medium enterprises (MSMEs) pursuing high-risk innovation in new drug and therapy development under the Rs 5,000 crore Promotion of Research and Innovation in Pharma and MedTech (PRIP) Scheme.

The new funding track will support early-stage novel drug discovery projects and is aimed at accelerating research and investment in pharmaceuticals and medical devices.

Under the initiative, financial assistance of up to Rs 50 crore per company, project or portfolio of projects will be provided, subject to a minimum co-funding of 25 per cent of the project cost from bona fide institutional investors, the DoP said on Wednesday.

Focus On Early-Stage Drug Discovery

Start-ups and MSMEs undertaking New Chemical Entity (NCE) and New Biological Entity (NBE) projects at Technology Readiness Levels (TRL) 1, 2 or 3 will be eligible to apply under the exclusive track.

Applications have been invited under the second tranche of projects to be approved under the PRIP Scheme, reported Business Standard.

According to a senior official, the initiative is expected to provide risk capital to start-ups and MSMEs while encouraging institutional investors to participate at an earlier stage of drug development.

The funding is intended to help more indigenous NCE and NBE assets progress from discovery towards clinical development and strengthen India's drug innovation pipeline.

First Tranche Approved 41 Projects

Under the first tranche, 41 projects received approval for around Rs 1,600 crore in financial assistance. The DoP said evaluation of the remaining applications from the first round is underway, with further results expected over the coming month.

The approved projects are expected to attract an additional Rs 3,020 crore in private investment, taking the total R&D investment across the portfolio to around Rs 4,620 crore.

Of the 41 approved projects, 12 are at an early stage and 29 at a later stage. Start-ups and MSMEs account for 19 projects, while large companies account for 22.

The portfolio includes projects from Biocon, Bharat Biotech, Sun Pharma, Wockhardt and Mankind Pharma, among others.

Supported projects include an antibacterial targeting multidrug-resistant Gram-negative infections, an exosome-based regenerative therapy for corneal disease and an in-vivo CAR-T platform.

(KNN Bureau)