The Department of Pharmaceuticals (DoP) has launched a new funding track under its ₹5,000 crore PRIP Scheme specifically targeting start-ups and MSMEs in early-stage drug discovery. According to reports from Business Standard, this initiative will provide financial assistance of up to ₹50 crore per company/project/portfolio of projects, subject to a minimum co-funding of 25 per cent of project costs from bona fide institutional investors.
Start-ups and MSMEs undertaking New Chemical Entity (NCE) and New Biological Entity (NBE) projects at Technology Readiness Levels (TRL) 1, 2 or 3 will be eligible to apply under this exclusive track. As reported by Business Standard, applications for this new track have been called for under the second tranche of projects to be approved under the PRIP Scheme. The funding aims to catalyse participation of institutional investors at an earlier stage of drug development.
The first tranche of the PRIP Scheme saw 41 projects approved for around ₹1,600 crore in financial assistance. According to the DoP, evaluation of remaining applications under the first round is currently underway, with further results to be announced over the coming month. The approved projects are expected to catalyse an additional ₹3,020 crore of private investment, taking the total research and development investment across these projects to around ₹4,620 crore.
The approved portfolio spans the innovation value chain, covering novel drug discovery, clinical development and innovative medical technologies. As reported by Business Standard, of the 41 projects approved, 12 are at an early stage and 29 are at a later stage. 19 projects are being undertaken by startups and MSMEs, while 22 are being undertaken by large companies. The portfolio includes projects by companies such as Biocon, Bharat Biotech, Sun Pharma, Wockhardt and Mankind Pharma, among others.
According to an official quoted by Business Standard, this funding will act as large-scale risk capital to startups and MSMEs and catalyse participation of institutional investors at an earlier stage of drug development. The initiative aims to enable more indigenous NCE and NBE assets to progress from discovery towards clinical development and help build a globally competitive drug innovation pipeline. Projects supported under these categories include an antibacterial targeting multidrug-resistant gram-negative infections, an exosome-based regenerative therapy for corneal disease and an in-vivo CAR-T platform.
