The Department of Pharmaceuticals (DoP) has announced a New Discovery track under the Promotion of Research and Innovation in Pharma and MedTech (PRIP) scheme for undertaking pharma innovation projects. The objective is to encourage and enable startups and Micro, Small and Medium Enterprises (MSMEs) to venture in to high-risk innovation ecosystem for discovery of new drugs and therapies.

This new track seeks to address a critical funding gap in early-stage novel drug discovery. Financial assistance of up to INR 50 crore per company/project/portfolio of projects will be provided, subject to a minimum co-funding of 25 percent of the project cost(s) from bona fide institutional investors.

This will act as large-scale risk capital to startups/MSMEs and catalyse participation of institutional investors at an earlier stage of drug development, enabling more indigenous New Chemical Entities (NCEs) and New Biological Entities (NBEs) assets to progress from discovery toward clinical development and help build a globally competitive drug innovation pipeline.

Startups and MSMEs undertaking NCE/NBE projects at Technology Readiness Levels (TRL) 1, 2 or 3 are eligible to apply under this new exclusive track. The department would support such projects to progress to higher TRLs not beyond TRL 6. The online PRIP portal is now open for submission of applications under the second call of the scheme.

With a financial outlay of INR 5,000 crore, the scheme aims to strengthen India’s pharmaceutical and medtech research and development ecosystem by supporting startups, MSMEs and large companies to move up the innovation value chain.

Second call Invites applications across the 3 priority areas: new medicines (including NCEs, NBEs and phytopharmaceutical drugs); complex generics and biosimilars and novel medical devices.

Apart from the New Discovery track, applications are invited under early stage and later stage.

In early stage, startups and MSMEs undertaking projects at TRL 1, 2 or 3, with the objective of progressing them to higher TRLs not beyond TRL 5, will be eligible. Financial assistance of up to INR 5 crore per project will be provided. Where the approved total project cost is up to INR 1 crore, no co-funding from the applicant will be required. Where the project cost exceeds INR 1 crore, half of the project cost exceeding INR 1 crore will be co-funded by the applicant.

In later stage, industry, startups and MSMEs undertaking projects at TRL 4, 5 or 6 to higher TRLs will be eligible. Financial assistance of up to INR 100 crore per project will be provided, subject to a maximum of 35 percent of the approved total project cost, with the remaining amount to be co-funded by the applicant.

Application forms and supporting guidance are available on the PRIP Portal. Applicants can refer to the scheme and scheme guidelines, guidance for concept note, guidance for application form, milestone descriptor catalogue, Frequently Asked Questions (FAQs) and the application support toolkit for further details.

Under the first call of the PRIP scheme, 41 projects have been approved for around INR 1,600 crore in financial assistance. Evaluation of the remaining applications under the first round is underway, with further results to be announced over the coming month.

Applicants who had submitted projects under PRIP Round 1 have been advised not to resubmit the same project.