Budget 2023: Pharma experts expect separate funds for R&D formulations, APIs & focus on public health
February 16,2023
Sanjeev Jain, Managing Director, Akums Drugs & Pharmaceuticals told Financial Express.com that in light of the recent surge in COVID-19 cases in China, pharmaceutical companies are concerned that they will face adverse impacts again. Union Budget 2023: Union Finance Minister Nirmala Sitharaman will be presenting the Union Budget 2023-24 on 1st February 2023. Ahead of the upcoming budget, experts from the pharmaceutical industry urge the government to give adequate importance to the industry, keeping precautionary measures in mind to prevent further damage caused by the COVID-19 pandemic. The year 2023 holds a positive outlook for India’s pharmaceutical industry. Interestingly, the segment has experienced significant growth during the past two decades, and pharma revenues worldwide totalled $1.42 trillion in 2021. Industry experts told Financial Express.com that the Indian Pharmaceutical sector is expecting an increase in the budget outlay and fund allocations for the pharma sector in the upcoming Union Budget (2023-2024). Last year, while the healthcare sector got a 16 per cent hike in the budget allocation due to the pandemic crisis, an increase in the share of healthcare and pharma spending in the upcoming budget is crucial. Impact of Recent Surge in COVID-19 Cases in China Sanjeev Jain, Managing Director, Akums Drugs & Pharmaceuticals told Financial Express.com that in light of the recent surge in COVID-19 cases in China, pharmaceutical companies are concerned that they will face adverse impacts again. “Since China is the epicentre of Active Pharmaceutical Ingredients (APIs) manufacturing, pharmaceutical companies across the world heavily rely on APIs from it for the production of their medicines. The recent outbreak of corona has already started disrupting the availability as well as the prices of APIs imported in India. We are currently observing the COVID-19 situation in China, not just epidemiologically, but also in terms of supply of drug raw materials from China. As the situation becomes more clear, we may start maintaining stock of fast running and critical APIs,” Jain told Financial Express.com. ‘Encouraging innovation and increasing expenditure on R&D’ According to a recent EY FICCI report, in the wake of a growing consensus over providing new innovative therapies to patients, the Indian pharmaceutical market is estimated to touch $130 billion in value by the end of 2023. Meanwhile, the global market size of pharmaceutical products is estimated to cross the $1 trillion mark in 2023. Industry experts told Financial Express.com that it is essential to allocate separate funds for R&D, formulation, and Active Pharmaceutical Ingredients (APIs). “From quickly boosting up production to help satisfy local and global demands for therapeutics and vaccines to fueling research and development in the field, the pandemic has emphasised the pharmaceutical industry’s capabilities and capacity in meeting the country’s healthcare needs. The upcoming budget will play a pivotal role in sustaining its growth and momentum. Additional budget should be allocated by the government to the Production Linked Incentive (PLI) scheme which will encourage investments, attract core knowledge competency, promote employment and make the country a competitive player in global markets. Additionally, budgetary allocation for R&D in bio-pharmaceutical sector must also be increased,” Nikkhil K Masurkar, CEO, Entod pharmaceuticals told Financial Express.com.
Santosh Rastogi 
Medikamart Healthcare Solutions