Investing in talent, risk-taking and forging partnerships will power innovation in Indian pharma. This will ensure that the industry remains competitive and relevant in the years ahead, said Glenn Mario Saldanha, chairman and managing director, Glenmark Pharmaceuticals.
The shift in India’s pharmaceutical industry from being a global supplier of affordable generics to pursuing innovation-led operations, has not been a smooth ride, even as it transformed business models and redefined the country’s role on the global pharmaceutical landscape, he added.
In the late 90s and early 2000, Indian pharma capitalised on process chemistry and scaled to produce generics at competitive prices. The introduction of product patents in 2005 compelled firms to rethink their strategies. Large players began investing in R&D capabilities, to develop differentiated products and proprietary technologies. This transition was gradual, marked by initial hesitancy due to high costs, uncertain returns, and limited access to global markets. However, the promise of higher margins and global recognition motivated companies to persist, he said.
The pathway to innovation has yielded mixed outcomes. While some companies struggled with the demands of new drug discovery, others made notable progress. Industry learnings included importance of sustained investment, strategic risk-taking, and regulatory agility, noted Saldanha.
Pharma companies realised that building innovation capacity required patience, talent development, and a willingness to collaborate internationally. Successes have often emerged from a focus on niche areas of biosimilars, novel drug delivery systems, and speciality therapies. Out-licensing deals played a pivotal role in boosting innovation capacity within Indian pharma. By collaborating with multinational companies, Indian firms have been able to monetise their R&D assets, gain access to global markets, and share development risks, said Saldanha.
These deals have also provided valuable feedback and validation, enabling companies to refine their internal processes. Other initiatives, like academic collaborations, incubation programmes, and government-supported schemes, have further strengthened the innovation ecosystem. More Indian companies are now advancing assets from early discovery to clinical development and commercialisation, he said.
To this end, Glenmark began investing in novel drug discovery in early 2000, focusing on dermatology, respiratory, and oncology. In 2004, the company out-licensed the development rights for Olgemilast, a treatment for asthma and COPD, to Forest Laboratories for $195 million. There were others, like Dr Reddy’s Laboratories’ molecule for diabetes (balaglitazone) and Sun Pharma’s molecule for moderate-to-severe plaque psoriasis (tildrakizumab).
The Glenmark chief was emphatic about the centrality of innovation in the company’s current and future strategy, stating, “We have continued to invest in innovation against all odds. Despite challenges and failures, we remained committed because we believe that innovation is critical in the success of a pharmaceutical company. Despite setbacks, and the inherent risks of innovation, only perseverance and a clear innovation roadmap can yield tangible results, even in a challenging environment.”
Other Indian pharma companies have also demonstrated the benefits of persistent R&D. Firms like Dr Reddy’s Laboratories, Sun Pharma, and Cipla have made strides in developing differentiated products, biosimilars, and complex generics. These achievements underscore the value of long-term investment and the need for a supportive regulatory and financial ecosystem, said Saldanha.
Now Indian pharma at an inflection point. Innovation is increasingly becoming central to its growth strategy. Out-licensing deals, government initiatives, and international partnerships have helped build innovation capacity, but sustained R&D commitment remains critical. The trajectory of innovation to the next level is not going to be a straight line, said Saldanha. |