Pharmaceutical R&D investments for the top 25 companies has increased by 24.1% from September 2015 to September 2016, due to international competition and patent expiration issues, which has encouraged Indian pharmaceutical companies to accelerate innovation. On average, companies invested 7.8% of total net revenue on R&D in 2015–16, an 18.2% increase from 2013–14. However, India’s pharmaceutical companies are approximately 10% below the global average R&D spend, as the top 15 global pharmaceutical companies typically spend over 17% of total net revenue on R&D. From January to September 2016, Indian pharmaceutical companies received FDA approvals for 33% of total submissions and FDA approvals for 48% of tentative applications. In comparison to the same time period last year, there was a 24.8% increase in final approvals, largely attributed to the growth of R&D investments. India’s Sun Pharmaceutical leads the country’s pharmaceutical R&D expenditure, with INR 2,303 crore ($346.2 million) spent in 2015–16, up 17.8%. Dr. Reddy’s Laboratories’ R&D spend increased 6.2% to INR 1,790 crore ($269.1 million). Lupin, Alembic Pharma and Ajanta Pharma had amongst the highest R&D expenditure increases, with Lupin’s R&D investments rising 54.8% to INR 1,732 crore ($260.3 million), while both Alembic Pharma and Ajanta Pharma’s R&D spending increased over 100% to INR 255 crore ($38.3 million) and INR 149 crore ($22.4 million), respectively.

Source: Pharmabiz

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