Bhuvan and Sam are sharing views on the Budget announcements and Sam wants to know more about the Biopharma Shakti plan. As Bhuvan tracks pharma, Sam fires away at the topic.

Sam: Biopharma Shakti, a plan to develop India as a biopharmaceutical hub has been announced. So two questions on that; how will I benefit in the short term and how will I benefit in the long term?

Bhuvan: Cutting to the chase, I see. But let me lay it out in detail before I start giving stock recommendations, or as you call it – ‘how will I benefit’, as I guess you are wondering whether your pharma stocks can do better.  The minister made an important observation – “India’s disease burden is observed to be shifting towards non-communicable diseases, like diabetes, cancer and autoimmune disorders”. A decade ago these diseases would have accounted for a third of the deaths but now account for two-thirds. Along with mortality, the minister is also pre-empting a decline in quality of life caused by the ailments which is an equally critical concern.

Sam: But why the insistence on biopharmaceuticals compared to normal medicines?

Bhuvan: The normal medicines you refer to are small molecules which are made from chemicals. Biopharmaceuticals or biologics are made from living organisms like proteins and peptides. In terms of action, a small molecule is more akin to carpet bombing cells, healthy or diseased alike, causing side effects. A biologic can reach the specific site, attach to the disease cell, and treat the disease with higher success rate (lower recurrence) and lower side effects.

This way biologics are better compared to small molecules for cancer where healthy cells turn cancerous, auto immune disease where body’s own cells start attacking the body, or even diabetes.

And beware, these diseases are rising in India. India already has the highest diabetic population and oncology has risen so much that you won’t find a hospital without a dedicated oncology wing. Then we have auto immune diseases which are barely addressed. Take rheumatoid arthritis (RA), for instance, which disproportionately affects women and causes joint pains. But this remains a vastly undertreated disease in India.

Sam: Agreed, but these would be costlier than small molecules?

Bhuvan: Yes, they would. But the next decade will witness far more biologics losing patent protection allowing for cheaper biosimilars (generic equivalent to biologics). Indian pharma which specialised in generics already has a headstart in biosimilars and can build on the momentum. There in lies your short-term view. Companies like Biocon started with biosimilars more than a decade ago and others including Dr. Reddy’s, Zydus, Lupin, Aurobindo and even Sun Pharma are looking into biosimilars or have a commercialised portfolio already. Zydus Lifesciences and Sun Pharma have their own innovator biologics as well.

The Shakti plan that reinforces biopharma ecosystem with education, regulation and clinical testing sites should encourage the companies to further expand their current biopharma portfolios. You would be surprised to know that the US, which holds half of the world’s biopharma market, has firmly established biosimilar evaluation guidelines only in the last 10 years.

Overall, the pharma manufacturers should start evaluating their portfolios of medicines to increase the share of “affordable” biosimilars to tackle the evolving disease burden in India and other emerging countries. Biocon generates around 60 per cent from biosimilars and other companies would be lower. Dr. Reddy’s has a strong biosimilar portfolio and can grow stronger with the launch of biosimilar Semaglutide - a leading biologic for diabetes treatment that will lose patent protection in several markets this year. With the shifting disease burden, a genuine need for biologics/biosimilars and evolving support system from government, this could be a strong driver for the companies.

Sam: Thanks Bhuvan, that was a healthy discussion, both for health and the wallet.

Published on February 7, 2026