Conventional financing remains a hurdle for pharma innovation, say industry leaders

India has the potential to move up the pharmaceutical value chain from its existing dominant position as a major generics manufacturer globally to a big player in innovation, particularly drug discovery, if such efforts are supported by adequate financing, industry leaders said on Tuesday (February 17, 2026).

Apart from solutions to address the financing challenges for to India to move from a predominantly volume to value focused strategy, other facilitative measures to accelerate the process include regulatory support, industry leaders who participated in the CEO Conclave at BioAsia on Tuesday (February 17, 2026) sought to underscore. The conclave was on ‘Future of pharma and biotech – growth, headwinds and opportunities.’

Given the resources required and the limitations for listed companies, in terms of the resultant impact of a higher R&D spend on the bottom line, there is a need to promote other ways of funding, Dr. Reddy’s Laboratories co-chairman and managing director G.V. Prasad said.

“There are [other] ways to fund it,” he said, stressing a move away from conventional valuation of the companies. Noting that there is no one alternative model and each company has to be find its own path, he said “if you want to do innovation, it is a serious journey. Funding options available, many different ways of getting there.” One of the factors set to drive the innovation process, out of India, is many global majors setting up shop in India and consequently contributing to strengthening of the ecosystem.

Mr. Prasad also underscored the domestic home market to become attractive for innovators.

Biocon Biologics MD and CEO Shreehas Tambe, to queries during the panel discussion, said it is time for Indian pharma industry to move up the value chain. The art is to do it in a manner which is fiscally responsible, he said, adding lot of funding to promote innovation in the U.S. is still federal government funding. There is a limitation in terms of what the private sector can do, he added.

Eric Mansion, GM, India and South-East Asia, Sanofi, said the shift from the volume to value game will depend on the speed in execution, some intervention from government through policy support as well as initiatives.

President and GM of Lilly India Winselow Tucker said India can emerge as a clinical trial hub. Founder and president of Miltenyi Biotec Stefan Miltenyi cited the research funding in Europe and how it helped sharpen focus on innovation.