Government of India
Ministry of Chemicals and Fertilizers
Department of Chemicals and Petrochemicals
MEMORANDUM
It has been decided to constitute a Pharmaceutical Research & Development Committee with a view to recommend measures to strengthen the research and development capability of the pharmaceutical industry in the country and to identify the support required by Indian pharmaceutical companies to undertaken domestic R&D. Accordingly, the following Committee is constituted.
The terms of reference of the Committee are as follows:-
To appraise the current status of R&D in the Indian pharmaceutical sector and to suggest measures to boost it in the context of drug price control regime and changes in laws on Intellectual Property Rights.
To suggest new and innovative fiscal and non-fiscal measures for boosting R&D in pharmaceutical sector, and
To suggest mechanisms for establishing organic linkages between private sector and government organisations/ laboratories/ universities with a view to synchronising and synergising national R&D efforts in pharmaceuticals.
The Committee will liase closely with the Drug Price Control Review Committee.
The Committee will widely consult different interest groups, industry associations, consumers and other organisations / bodies.
The Committee shall submit its report within three months**.
Sd/-
(S.K. SOOD)
Joint Secretary to the Government of India
*Shri B.K. Raijada was nominated after the death of Dr. Parvinder Signh on 03 July, 1999.
**The term was subsequently extended upto 15th November, 1999.
Annexure 2 The committee interacted with the following Stakeholders
Dr.Manju Sharma |
Secretary | Deptt. Of Biotechnology, New Delhi |
Prof. V.S. Ramamurthy |
Secretary | D. S.T., New Delhi |
Dr. M.M. Sharma |
Professor | UDCT, Mumbai |
Shri. Ashwini Kumar |
DCGI MOH FW | New Delhi |
Dr. C.L. Kaul |
Director | NIPER, Chandigarh |
Dr. S.N. Kaul, |
Adviser | Deptt. Economic Affairs, New Delhi |
Prof. B.N. Dhawan |
Ex-Director | C. D. R. I., Lucknow |
Dr. K.M.Parikh |
Managing Director | M/s Zandu Pharmaceutical Ltd.,Mumbai |
Dr. H. F. Khorakiwala |
CMD | M/s Wockhardt Ltd., Mumbai |
Dr. Dinesh S.Patel |
Vice-Chairman | Themis Chemicals Ltd., Mumbai |
Prof. G. Padmanaban |
Honorary Professor | Indian Institute of Science, Bangalore |
Prof. D. Balasubramanian |
Director of Research | Eye Research Foundation, Hyderabad |
Dr. D.R. Rao |
Managing Director | Neuland Labs Ltd., Hyderabad |
Prof V.M. Kulkarni |
Professor | UDCT, Mumbai |
Shri Nilesh Gupta |
Director | Lupin Labs Ltd., Mumbai |
Dr. V.P. Kamboj |
Emeritus Scientist | C.D.R.I., Lucknow |
Dr. Gopakumar G. Nair |
President | I.D.M.A., Mumbai |
Prof. S.S. Handa |
Director | Regional Research Lab, Jammu |
V.C. Nannapaneni |
C M D. | NATCO Pharma Ltd., Hyderabad |
Dr. Sukh Dev |
Visiting Professor | Delhi University,Delhi |
Dr.M.D. Nair |
Consultant | Chennai. |
Dr. Nitya Nand |
Ex-Director | C.D.R.I., Lucknow |
Dr. D.B. Gupta |
CMD | Lupin Labs. Mumbai |
Shri R.D. Joshi |
Secretary-General | O.P.P.I., Mumbai |
Prof. Goverdhan Mehta |
Director | Indian Institute of Science, Bangalore |
Prof. R. R. Chaudhury |
Emeritus Scientist | N. I..Immunology, New Delhi |
Dr. Anand Puranik |
C M.D | Shree Dhootapapeshwar Ltd, Mumbai |
Dr. S.A. Dahanukar |
Prof.&Head | Seth GS Medical College, Mumbai |
Prof.. K Jayaraman |
Dean of Technology | Anna University, Chennai |
Shri Rajiv I. Modi |
President | Cadila Pharmaceuticals, Mumabi |
Dr. Krishna Ella |
MD | Bharat Biotech Ltd., Hyderabad |
Shri N.R. Subba Ram |
Consultant | Chennai |
Dr. (Mrs).V. Muthuswamy |
DDG (BMS) | ICMR, New Delhi |
Ms.Rama Naidu |
Director | CII, New Delhi |
Dr. S. K. Sharma |
Advisor | Deptt. Of ISM, New Delhi |
Maj.Gen.V.K. Sareen |
CMD | IDPL, Rishikesh |
Shri Manubhai Shah |
Managing Trustee | Consumer Research Society, Ahemadabad |
Dr. S.K. Basu |
Director | N. I. Immunology, New Delhi |
Dr. A. N. Bhaduri |
Emeritus Scientist | I.I.C.B., Calcutta |
Dr. P.M. Bhargava |
Consultant | Anveshna Services, Hyderabad |
Dr. P. Das Gupta |
Ex DCGI | MOHFW, New Delhi |
Dr. Asis Datta |
Vice Chancellor | JNU, New Delhi |
Dr. S.P. Jurani |
Vice President | Themis Chemicals Ltd., Mumbai |
Dr. (Mrs). Indira Nath |
Emeritus Scientist | AIIMS, New Delhi |
Dr. Pankaj Patel |
MD | Cadila Pharmaceuticals, Mumbai |
Dr. M R Samuel |
Sr. Vice President | Cadila Health Care, Mumabi |
Shri A. Srinivasa Rao |
Exc.Vice President | NATCO Pharma, Hyderabad |
Prof. P.N. Tandon |
Emeritus Professor | AIIMS, New Delhi |
Dr. A.B. Vaidya |
Research Director | SPARC, Mumbai |
Dr.S. Varadarajan |
Ex- President | INSA, New Delhi |
Dr. J.M. Khanna |
Sr. Vice President | Ranbaxy Laboratories Ltd., New Delhi |
Smt. Shobha Koshi |
Director | MOHFW, New Delhi |
Prof. S. Ranganathan |
Scientist Emeritus | I. I. C. T., Hyderabad |
Dr. Venketshwarulu |
President | Dr. Reddy Labs. ,Hyderabad |
Shri Y. K. Hameed |
Chairman | Cipla Ltd., Mumbai |
Dr. A.V. Rama Rao |
M.D | AVRA, Laboratories, Hyderabad |
Dr. Amit Sen Gupta |
Social Scientist | Delhi Science Forum, New Delhi |
Shri S.Sriniwasan |
Managing Trustee | LOCOST, Baroda |
Dr. Shruti Khanna |
Director | LOCOST, Baroda |
Dr. Vishwas Rane |
Consultant | Arogya Dakshata Mandal, Pune |
Shri Raj Bahadur |
President | Consumer Guidance Society, Mumbai |
Shri Ram Khanna |
President | Consumer Council, New Delhi |
Dr. S.C. Pakrashi |
Emeritus Scientist | University of Calcutta, Calcutta |
Brig. SVS Choudhary |
Chairman | Int. Development Centre, New Delhi |
Shri Sunil Dadhe |
Deputy Secretary | Dept. of C & P.C., New Delhi |
Dr. O.P. Aggarwal |
Sr. Scientist | CSIR., New Delhi |
Dr D.Y. Rao |
Scientist | CSIR., New Delhi |
Shri K.M. Kaul |
Project Officer | Dept. of C & P.C., New Delhi |
Mr Homi Khusrokan |
Prseident | OPPI .,Mumbai |
Dr H.R.Bhojwani |
Advisor | CSIR, New Delhi |
Dr. R.K.Agarwal |
Chairman | Natural Remedies Pvt Ltd., Bangalore |
Dr. G.C.Burman |
Chairman & M.D. | Dabur India Ltd., Sahibabad |
Dr Dilip Chenoy |
Sr. Director | CII, New Delhi |
Shre Omkar Goswami |
Advisor | CII, New Delhi |
Dr M.K.Chouhan |
C.M.D. | M.I. and Marketing Services, Mumabi |
Dr Raganathan Darshan |
Scientist | IICT, Hyderabad |
Dr Tarun Das |
Secretary | General CII, New Delhi |
Dr Chaitanya Dutta |
Director | Torrent Pharmaceuticals, Gandhi Nagar |
Dr. P. Ganguly |
Director | Hindustan Lever Ltd, Mumbai |
Dr Lalita |
Joint M.D | COO ICICI Ltd ,Mumbai |
Dr N.H. Israni |
President | IDMA, Mumbai |
Dr Krishana Ella |
CMD | Bharat Biotech ,Hyderabad |
Shre B.K.Keayla |
Secy -General | N W Group on Patent Laws, New Delhi |
Shri N.N.Khanna |
Special Secretary | Ministry of Commerce, New Delhi |
Professor R.Kumar |
|
Dept of Chemical Eng. Indian Institute of Science Bangalore |
Dr Bansi Lal |
President | Quest Insitute of Life Sciences,Mumbai |
Dr. K.K.Maheshwari |
Technical Director | USV Ltd., Mumbai |
Dr N.N. Mehrotra |
Scientist | CDRI, Lucknow |
Dr. T.S. Murli |
Senior Manager | Arya Vaidya Sala, Kotlakal |
Dr. P.K. Varier |
Chief Physican & MD. | Arya Vaidya Sala, Kotlakal |
Dr K.M.Parekh |
M.D. | Zandu Pharamceutical Ltd., Dept of Chemical Eng. Indian Institute of Science Mumbai |
Dr L.V.Prasad |
President | Eye Research Institute, Hyderabad |
Prof. S.Ramasesham |
Editor | Current Science Raman Research Institute, Bangalore |
Dr Varaprasad Reddy |
M.D. | Shanta Biotechnics Pvt Ltd,Hyderabad |
Dr N.N.Rege |
Associate Professor | Seth G.S. Medical College, Mumbai |
Prof. S.D. Seth |
Ex Professor | ICMR. New Delhi |
Brig. SVS Chowdhury |
(Retd) Chairman | IDC. New Delhi |
Dr. N.H. Israni |
President | IDMA. Mumabi |
Dr. (Mrs.) K. Jayaraman |
Director | CBT Anna University of Technology, Chennai |
Dr. V.P Kamboj |
Emeritus Scientist | CDRI, Lucknow |
Dr. MV Kumar |
President | TTK Pharma, Chennai |
Dr. K.K.G Menon |
Consultant | Palmcrest, Mumbai |
Dr. Gopakumar G. Nair |
President | IDMA, Mumbai |
Dr,
MD.D Nair |
Consultant |
Sagarika, Chennai |
Shri
S.B.V. Nannapaneni |
CMD |
Hyderabad |
Dr.
Vaidya Balendu Prakash |
Chief Physician |
Dehradoon |
Annexure-3
No.12025/13/99-PI-II
Government of India
Ministry of Chemicals and Fertilizers
Department of Chemicals & Petrochemicals
Pharmaceutical Research and Development Committee
Shashtri Bhavan, New Delhi
Dated the May 14, 1999
Sub: Pharmaceutical Research & Development Committee.
In the first meeting of the Pharmaceutical Research and Development Committee held on April 26, 1999 under the Chairmanship of Dr. R.A. Mashelkar, Director General, CSIR. It was decided to form two Sub-Groups relating to IPR related issues and identification of areas of R&D in the country. Accordingly, the following two Sub-Groups are hereby constituted, with the approval of Chairman of the Committee.
Sub-GROUP ON IPR
| 1. Shri Ashok Chawlla, JS(P) | - |
Chairman |
| 2. Shri B.K. Raizada, Sr. Vice
Presient M/s Ranbaxy Ltd. |
- |
Member |
| 3. Shri N.R. Subba Ram, Head,
IPMD Chennai |
- |
Member |
| 4. Shri Sunil Dadhe, DS(PI) | - |
Convenor |
Sub-GROUP on Identification of areas of R&D in pharma sector
| 1. Dr. C.M. Gupta, Director, CDRI | - |
Chairman |
| 2. Shri Venkateshwarulu, Director
M/s Reddy's Labs. |
- |
Member |
| 3. Dr. J.M. Khanna, Sr. Vice President M/s Ranbaxy Ltd. | - |
Member |
| 4. Shri K.M. Kaul, PO(PI) | - |
Member |
| 5. Dr. O.P. Agarwal
Joint Adviser, CSIR |
- |
Convenor |
Both the Sub-Groups are requested to submit draft papers on the respective subjects by 31st May, 1999 and make a presentation of the same in the meeting of the Pharmaceutical R&D Committee scheduled to be held on June 3, 1999.
SD/-
(S.M. JHARWAL)
OSD
Annexure-4
A number of countries including Germany, France, Canada, USA, China, etc. are registering standardised plant extracts of proven clinical efficacy and safety obtained from natural sources as herbal drugs or dietary supplements. Inspite of the fact that India has a vast resource of drugs of natural origin, we are unable to exploit the vast world market because we have an unsatisfactory system of their quality control and registration. On account of the importance of herbal drugs and TSMs in India, it may be necessary to create a separate division in CDSCO to regulate the quality of such drugs, and to provide proper focus on all related aspects. A system of registration of TSMs with acceptable standards of quality control and GMPs need to be put in position.
(b) a drug already
approved by the licensing authority which is now proposed to be marketed with modified or
new claims,
(c) a fixed-dose
combination (FDC) of two or more drugs, individually approved earlier for certain claims,
which are proposed to be combined in a fixed ratio,
(d) all vaccines.
¨ Industry and industrial associations: For assistance in evaluation of data of new drugs.
¨ Professional bodies: For clarifications on relevant professional issues affecting the quality of drugs.
¨ Central and state government agencies: For obtaining views of these agencies on matters relating to introduction of a new drug.
¨ Consumers and consumer organisations: For inputs from the consumer angle.
¨ Foreign governments and international organisations: This may include the US FDA, WHO, etc. with a view to harmonising the requirements with the international standards of quality of drugs.
Provision of charging fees from applicants for drug evaluation activities also needs to be introduced. This ammount can be utilised to meet the expenses incurred in utilising the services of external experts.
(II) To reorganise the CDSCO in such a manner that it is in a position to provide effective regulatory safeguards to ensure that the patient is protected from the hazards to health by poor quality and counterfeit medicines by comprehensive regulatory procedures and effective inspection and enforcement arrangements.
(III) To ensure uniform standards of drug productions as well as the regulatory systems throughout the country.
(IV) To provide adequate autonomy to manage the various activities in accordance with the requirements of the Act and the mandates of the Ministry.
![]() |
Annexure - 5 Financing Knowledge-Based Corporate Growth
M |
times faster than the FT-SE100. Investments
increased by 28 per cent, and
exports by 29 per cent per year.
provided more than just money. They
helped in the growth process.
capital in India.
industries
enterprises (SMEs) companies that have the
flexibility to rapidly get on to the knowledge curve
and create 21st century products,
processes and services.
Venture capital invariably focuses on high
risk-high return firms those which develop products, processes and
services that are technologically and R&D intensive, which run a fairly high risk of
either product or market failure, but which, if they succeeed, can fetch far higher
returns than conventional industries. VCFs that dont meet this criterion are
more in the nartue of private equity funds investing in unlisted companies, but not
necessarily technologically risky one. Despite careful due diligence, the
international track record for VCFs show that of 10 projects five fail three are
moderately successful, and two are spectacular successes. The rewards from the two
great successes compensate for the cost of five failures, and earn the company sizeable
overall profits.
Here is KPs hit ratio:
Companies |
KPs
investment |
Year |
Current Value |
Multiple |
|
($ mill) |
|
($ mill) |
|
Home |
6.4 |
1995 |
559 |
87 |
Netscape |
5 |
1995 |
398 |
80 |
Amazon |
8 |
1996 |
352 |
44 |
Excite |
3 |
1994 |
218 |
73 |
![]() |
Fortune, 26 Oct 98 |
2) Exit.
Once a firm has succeeded, the VCF collects its returns and finally exits from the
project. The timing of exit varies, depending upon the speed of success, the state
of the capital market and other such factors. So, too, does the method of exit:
IPOs, private placement, swaps or others. But, exit is a must.
Items
|
Mutual Funds |
Venture Capital
Funds |
Basic
anomaly
|
Equity investments
are in listed companies in the secondary capitl market greater liquidity with lower
risk. |
Equity investments
in unlisted manufacturing companies far lesser liquidity with much higher risk. |
Permissible
portfolio |
Much greater
freedom. MFs can invest in equity of listed companies, corporate debt (debentures
and deposits), bonds, and up to 25 per cent in money market instruments. There are
no restrictions on the type of industry or activity of the target companies. |
Only unlisted
manufacturing companies, plus electricity generation and distribution, telecom services
and computer software. No service sector companies are allowed. No debt
instruments are allowed. No money market instruments are allowed. |
Income tax
anomalies(own income) |
10(23)D of the
Income Tax Act. . Off-shore MFs
incorporated in Mauritius. Totally tax exempt . Domestic
funds such as UTI. Totally tax exempt . All other
domestic MFs. Also totally tax exempt under 10(23)(1)D. This is so even if
these MFs park their fund in bank deposits. |
10(23)F of the
Income Tax Act. . Taxed at maximum marginal rate, except
for long term capital gains |
Investing
instruments |
All securities
permitted:ordinary and preference shares, convertible and non-convertible debentures,
other corporate debt instruments, bonds government securities and money market
instruments. |
. 10(23)F only
allows for edquity in venture capital undertakings i.e. ordinary and preference shares . Disallows
investment in convertible preference shares, or fully/partly convertible debentures. |
Investing
tinetable |
None |
Rule 2D of the
Income Tax Rules states that the investment ofa VCF in unlisted securities should be. . At least
20% in year 1 . At least
50% in year 2 . At least
80% in year 3 |
1.
2. Allow VCFs to invest up to 20% of the fund in specified debt
instruments, such as
government securities, and bonds issued by corporates,
banks and public financial
institutions. This hedges against the higher risk
of failures.
3. Allow up to 10% of a funds
corpus to be invested in listed securities.
This creates better cash flows for VCFs,.
4. Allow VCFs to invest in the
service sector. Electronic media, internet, publishing, health related
services, mid-range hotels and tourism will be attractive growth prospects.
5. Extend the same tax exemption for
MFs under section 10(23)D to VCFs.
6. Amend the year-to-year investment
timetable. Instead, specify only the terminal year target of investment in unlisted
securities, and peg that at 70% of the VCFs corpus.
Recommendation
Indian
insurance companies (LIC, GIC and its four subsidiaries) as well as the various employee
provident fund and pension schemes should be allowed to invest up to 5% of their funds in
VCFs. This is purely
an enabling provision.
All VCFs operating in India be they domestic
or registered offshore should be regulated by SEBI. To do so,
however, SEBI must have a full-fledged venture capital division with a permanent
divisional chief and adequate staff.
Provisions of the Indian Trust Act 1988 should be
modified to accommodate limited partnership and pass-through in line with the Venture
Capital Trust Act of the UK. This will definitely attract larger investments to
VCFs, especialy from body corporates.
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