Indian pharma R&D spends stay stagnant three years after pandemic downturn

Spends are now lower relative to sales than before Covid-19, stand at 4.4% of net sales, compared with 20% in the US

Indian pharmaceutical companies have not been stepping up research and development spends even amid rising sales.

The industry’s research and development (R&D) spends are the equivalent of 4.4 per cent of net sales, shows a Business Standard analysis of listed pharmaceutical companies with combined sales of Rs 2.4 trillion. The R&D spends have been stagnant at this figure for three years in a row. In comparison, companies in the US can spend upwards of 20 per cent.

The amounts have been declining over time. It was 6.2 per cent in 2016-17, up from 5.4 per cent in the previous year.