Indian Pharma Leaders Demand New Funding Models After BioAsia Conclave
Updated (2 articles)
Conclave Highlights Funding Gap for Drug Discovery At the BioAsia CEO Conclave on Feb 17 2026, industry heads warned that India’s transition from generic manufacturing to original drug discovery hinges on securing substantial R&D capital, a need that current listed‑company earnings cannot sustain [1]. They argued that without dedicated financing streams, the country risks lagging behind global innovators. The summit’s theme, “Future of pharma and biotech – growth, headwinds and opportunities,” framed the discussion around this financial bottleneck.
Regulatory Streamlining Seen as Parallel Accelerator Participants stressed that streamlined regulatory processes must accompany new funding to accelerate innovation timelines [1]. Faster approvals and clearer pathways were described as essential for translating research into marketable therapies. Executives linked policy certainty directly to investor confidence, suggesting that bureaucratic delays could erode the benefits of any financing reforms.
Executives Propose Diverse Financing Beyond Traditional Valuations Dr. G.V. Prasad, co‑chairman of Dr. Reddy’s Laboratories, called for alternative financing models, warning that conventional equity valuations strain R&D budgets [1]. Shreehas Tambe of Biocon Biologics highlighted limited private‑sector capacity and pointed to the U.S. federal funding model as a benchmark for responsible fiscal stewardship. Eric Mansion of Sanofi added that rapid execution coupled with targeted government interventions could shift firms from volume‑driven to value‑driven operations.
Clinical‑Trial Hub Potential and International Grant Opportunities Lilly India’s president, Winselow Tucker, identified India’s emerging role as a clinical‑trial hub, citing cost advantages and patient diversity [1]. Miltenyi Biotec founder Stefan Miltenyi noted that European research grants have sharpened his company’s innovation focus, suggesting similar international funding could be leveraged domestically. Both speakers emphasized that global collaborations could supplement domestic financing gaps.
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Timeline
2023 – India ranks sixth worldwide for total patent filings with 64,480 applications, a 15.7 % rise, yet its share of global filings stays at about 1.8 % and resident filings per million rank 47th, underscoring a mismatch between population size and innovative output[2].
2023 – Huawei spends roughly CNY 164.7 billion (≈ $23.4 billion) on R&D, an amount that alone exceeds India’s entire public‑plus‑private R&D outlay, highlighting the scale of the investment gap[2].
2025 (Dec) – India’s gross R&D expenditure hovers at 0.6‑0.7 % of GDP, far below China (≈ 2.4 %), the U.S. (≈ 3.5 %) and Israel (> 5 %); the private sector supplies only about 36.4 % of R&D funds while academia remains siloed from market needs, and a steady brain drain erodes domestic talent[2].
2025 (Dec) – Experts call for raising India’s R&D intensity to 2 % of GDP within five‑to‑seven years, launching a ₹1 lakh crore RDI Fund and national missions in semiconductors, AI, quantum computing, advanced materials and green energy, alongside reforms to higher‑education and IP policy to anchor long‑term innovation[2].
Feb 17, 2026 – At the BioAsia CEO Conclave, pharma leaders declare “India can shift from generics to drug discovery with adequate financing,” stressing that streamlined regulations and new capital sources are critical to moving up the pharmaceutical value chain[1].
Feb 17, 2026 – Dr Reddy’s co‑chairman G V Prasad urges “alternative funding beyond conventional valuation,” warning that higher R&D spend can strain listed‑company earnings and each firm must chart its own financing path[1].
Feb 17, 2026 – Biocon Biologics MD Shreehas Tambe emphasizes “fiscal responsibility” and notes that most U.S. innovation funding comes from federal sources, limiting private‑sector capacity in India[1].
Feb 17, 2026 – Sanofi’s GM for India and SE Asia Eric Mansion links “speed of execution and targeted government policy” to the shift from volume‑driven to value‑driven pharma models[1].
Feb 17, 2026 – Lilly India President Winselow Tucker projects India’s emergence as a clinical‑trial hub, while Miltenyi Biotec founder Stefan Miltenyi points to European research grants sharpening his company’s innovation focus[1].
2026 onward – Industry leaders anticipate rapid policy interventions and execution to accelerate India’s transition to a value‑driven, innovation‑focused pharmaceutical sector, building on the financing and regulatory commitments outlined at the conclave[1].