Govt Launches ₹50 Cr Support Track for Pharma & MedTech Startups

The Ministry of Chemicals and Fertilizers, Department of Pharmaceuticals, has announced a New Discovery Track under the Promotion of Research and Innovation in Pharma & MedTech (PRIP) Scheme, aimed at empowering startups and MSMEs to venture into high-risk drug discovery and development.

The newly introduced track aims to bridge the crucial funding gap in early‑stage drug discovery. It offers financial support of up to ₹50 crore for each company, project, or portfolio, provided applicants secure at least 25% co‑funding from recognized institutional investors.

This funding will serve as high‑risk capital for startups and MSMEs, encouraging early participation from institutional investors in drug development. By doing so, it will accelerate the advancement of indigenous New Chemical Entities (NCEs) and New Biological Entities (NBEs) from discovery to clinical stages, strengthening India’s pipeline of globally competitive drug innovations.

Key Highlights of the Announcement

• Financial Assistance: Up to ₹50 crore per company/project/portfolio, with mandatory 25% co-funding from institutional investors.
• Eligibility: Startups and MSMEs working on New Chemical Entities (NCEs) or New Biological Entities (NBEs) at Technology Readiness Levels (TRL) 1–3.
• Scope: Projects supported up to TRL 6, enabling progression from discovery to clinical development.
• Total Outlay: ₹5,000 crore to strengthen India’s pharmaceutical and MedTech R&D ecosystem.

Financial assistance of upto ₹50 crore per company/project/portfolio of projects will be provided, subject to a minimum co-funding of 25% of the project cost(s) from bona fide institutional investors.

Priority Areas for Second Call Applications

1. New Medicines – NCEs, NBEs, phytopharmaceutical drugs
2. Complex Generics and biosimilars
3. Novel Medical Devices

Other Funding Tracks

• Early Stage Track: For TRL 1–3 projects; up to ₹5 crore per project; no co-funding required for projects ≤ ₹1 crore.
• Later Stage Track: For TRL 4–6 projects; up to ₹100 crore per project; maximum 35% of project cost covered, rest co-funded by applicant.

Progress So Far

In the first call, 41 projects have already been approved with ₹1,600 crore in financial assistance. Evaluation of remaining applications is ongoing, with results expected soon.

Application Process

• Two-step process for early-stage applicants:
  1. Submit a concept note
  2. Shortlisted applicants submit a detailed application
• Later-stage applicants continue with the detailed application form.
• Guidance documents, FAQs, and toolkits are available on the PRIP Portal.

This initiative is a significant step toward building a globally competitive drug innovation pipeline in India, catalyzing institutional investment and supporting indigenous innovation in pharma and MedTech.