Head honchos of multinational pharma companies, who have made a hue and cry about the slack Intellectual Property Rights (IPR) environment in India creating hurdles for large R&D investments here, may sit up and take notice.

The strategies of MNCs to utilise the cost effective scenario of Indian pharma R&D by setting up new R&D centers reinforce the potential of India as an R&D hub for the global pharmaceutical majors.

Last week, Wyeth, the 10th largest pharmaceutical company in the world, teamed up with GVK BIO, to start a built-to-suit research center for the MNC in Hyderabad.

Robert Ruffolo, president, Wyeth Research, had said, ?Wyeth will be able to tap into the huge chemistry talent pool in India and to work globally on a 24-hour basis.?

In August, yet another US-based major player, Allergan, had opened its pharma R&D company, Allergan Pharmaceutical Development Centre India, in Bangalore.

For the $3-billion Allergan, the centre is the third largest outside of the US, after Sydney and London. These moves by some MNCs are seen to nullify the concerns of companies like Novartis who have been arguing that the recent court ruling on their cancer drug Glivec would be a major disincentive for investment by innovator companies in India.

Ranjit Shahani, vice-chairman & MD, Novartis India had earlier said, ?We are really concerned, as the ruling will discourage any investments by innovator companies in India. But if innovator companies feel that the patent act in India cannot protect their innovations, how can they invest here??

Ranga Iyer, MD, Wyeth Ltd, told FE, ?It?s true that there are concerns over patent protection and data exclusivity. However, we will continue our investments here and hope issues will be resolved soon.?

Wyeth, with sales of $20.4 billion and net earnings of $4.2 billion, spent $3.1 billion on research and development in 2006.

Billy Tauzin, president and CEO, Pharmaceutical Research and Manufacturers of America (PhRMA), had said, ?As a result of Indian High Court’s stand, the current Indian law fails to recognise the benefits of incremental innovation for Indian patients and reduces incentives for companies to research and develop these advances in medical technology.?

Interestingly, Wyeth is one among the major members in PhRMA.