 , Director-Strategic Alliances and Communications, Nicholas Piramal India, wants Finance Minister to extend tax benefits on research and development to spin-off R&D companies in Budget 2008. She wants this benefit extended till 2012.
Excerpts from an interview with Dr Swati Piramal: Q: What are the key policy initiatives that you would like to see in Budget 2008? A: Our most important demand is for an extension in R&D tax benefits under Section 80 IB (8A) for pure R&D companies, i.e. companies that do not have manufacturing but have only R&D. These companies are certified by Department of Scientific and Industrial Research, and the Ministry of Science and Technology. This clause existed and was available till March 31 last year. We would like to see it extended till 2012. The reason being that R&D has a long gestation of 10-12 years because of human clinical trials. This is very risky as only one in 100 molecules make it to the market. This clause will benefit R&D spin-off companies, early start-ups, and academic spin-offs of research companies. Most countries like Israel, Canada, Singapore and Korea, have similar tax exemption schemes. Q: What is your outlook for the sector in the year ahead? A: 2008 will be an important year for Indian bio-pharma as some of India's biggest companies have announced the hiving-off of R&D companies from their parent company in an attempt to increase R&D funding. Nicholas Piramal, Ranbaxy, Wockhardt, and Biocon have announced this for 2008. This year we will also see a number of big pharma and Indian companies opting for R&D collaborations, which will see big benefits in costs, quality, and time for both partners. |
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