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. It slipped below the five per cent mark in the last three years even as sales have continued to grow.