Future for two States lies in life sciences

Life sciences is traditionally a sector of stronghold for both Telangana State and Andhra Pradesh. It is now rightly being focused by the Government of both the States. Specific initiatives have been taken by both the States for drawing investments for the Life Sciences Sector which constitutes Pharmaceutical, Biotechnology, Medical Devices, Vaccines, Nutraceuticals.

The Government of Telangana and the Government of Andhra Pradesh have announced sector specific policies (as a part of their Industry Policy) for Life Sciences (all the segments) and also have outlined the vision for the sector.

Although Hyderabad, which is known as the “Bulk Drug Capital of India”, has the majority of the bulk drug units and also has a significant biotech sector presence but Andhra Pradesh has also many of the pharma bulk drug firms (some of the big names from the Indian as well as the global pharma industry) having their investment in Vizag (Pharma City in Parawada) with the global pharma major Mylan promising future investment of $5bn and the Japanese pharma major Eisai having already its set up its manufacturing base in the city.

With the existing strengths in the life sciences sector (primarily in the “bulk drugs” segment) both the States need to capitalize on it and to reach out to some of the large Indian and global pharma firms (which have significant presence in the bulk drugs segment) to invest in these States and further grow the sector which indeed has a promising future.

Activities & initiatives
1) To network with industry associations (like CII, FICCI, ASSOCHAM) and also sector-specific associations (IDMA, OPPI, BDMA(I)) which would play the key role of connecting and networking with their members through their sector councils (for pharma, biotech, medical devices) and encourage them to invest in both the States (investor meets are certainly good initiatives for drawing investment). Similar efforts are to be undertaken by the overseas offices (like US, UK, Japan, Russia, Latin America, Africa, Australia-India has ongoing trade dialogue with these countries for the pharmaceutical and biotechnology sector) of these chambers to reach out to their members in this sector.
2) Both the States to have a country-specific desk (Ex: For pharma country desks for US, Europe, Latin America, Russia, Africa) which can be a single point of contact for Investors from these countries who are looking at possible investment in the sector with professionals having an indepth understanding of these countries and most importantly the sector.
3) The States also have to take the assistance and coordinate with the Central Government specifically the Department of Pharmaceuticals (for the “Pharma” Sector), Department of Biotechnology (for the “Biotech” sector), DCGI (Drug Controller General of India), Ministry of Commerce and DIPP (Department of Industrial Policy and Promotion), Ministry of AYUSH in devising the sector specific policies and also addressing the various issues related to investment in the sector
4) Organise investor summit with specific focus on the life sciences sector with participation of Industry Leaders both from the Indian and MNC Pharma and Biotech firms who can have an exchange of thought leadership (on the emerging trends for the sector), deliberate on the key issues for the sector specifically on the quality and regulatory side (specifically issues pertaining to “USFDA”), industry-academia partnership and the way forward for a bright future for the sector
5) Both the States need to showcase their specific strengths in the life sciences sector (such as bulk drugs, formulations,vaccines, biotechnology, animal health, drug discovery-in all aspects such as conducive policy, infrastructure and availability of talent) in the investor summit and explore various investment possibilities.

With the life sciences sector being projected as the sector to watch out for in the future the Governments of both the States (Telangana and Andhra Pradesh) have to wholeheartedly support this sector through a suitable policy framework which would not only encourage domestic investors (to invest more) but also to attract the foreign investors to make fresh investment in the States. (The writer is an independent management consultant to the pharmaceutical industry)