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Rs 500 crore Pharma Venture Capital fund in offing

Updated: Mar 22, 2013 05:10:36pm
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New Delhi, Mar 22 (KNN) The Planning Commission has received a proposal for the setting up of a 500 crore Pharma Venture Capital Fund for financing new drug discovery projects in the country.

“The Department (Pharmaceutical) has included in the Report of Working Group on Drugs and Pharmaceuticals Industry for the 12th Plan, submitted to the Planning Commission, a proposal for setting up Pharma Venture Capital Fund with an outlay of Rs. 500 crore for investment of identified funds into a newly created specialised private equity or Venture Capital that undertakes Research and Development (R&D) investments into companies in the Pharmaceutical industry,” said, the Minister of State (Independent Charge) for Chemicals and Fertilisers, Srikant Jena.

Besides, in November 2011 Ernst and Young Private Limited, Gurgaon was given an assignment for the preparation of a detailed project report for developing India as a Drug Discovery and Pharma Innovation Hub 2020.   Ernst and Young has since submitted a draft detailed project report (DPR).   Its report is expected to be finalized in consultation with all stakeholders.

In the meantime, the government will continue to allow foreign direct investment (FDI) up to 100 per cent through automatic route in the pharmaceuticals sector.
“FDI, up to 100 per cent, under the automatic route, would continue to be permitted for Greenfield investments in the Pharmaceuticals sector.   FDI up to 100 per cent, would be permitted for Brownfield investment (i.e. investments in existing companies), in the pharmaceuticals sector, under the Government approval route,” Jena said.

At present, only a handful of Indian companies like Piramal Life Sciences, Glenmark and Sun Pharma are engaged in new drug research; consequently, there are only 70-80 molecules in the pipeline from Indian players, of which more than two-thirds are still in early clinical phases. (KNN)

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