Even as India is hailed as the ‘pharmacy of the world’ for providing generic medicines and vaccines to nations across the globe, much remains to be done on the research and development and innovation front. But what does it take to become leaders in innovation, how can India replicate the generics feat in innovative drugs?

In this episode of The Medicine Box season 5, CNBC-TV18’s Ekta Batra catches up with Dr Reddy’s Laboratories' (DRL) co-chairman and MD, GV Prasad, who believes India has the potential to become a leader in innovation too.

According to Prasad, innovation can not be seen as a natural progression from generics as the skills innovative companies require are different. Such firms need to make highly concentrated bets and therefore, the risk appetites are different as against makers of generic drugs, he said.

DRL’s MD pointed to financing as a huge challenge for innovation, which requires multiple factors to fall in place. “Innovation is a long-term game, sometimes takes decades,” he added.

Prasad said early-stage innovation is thriving in India and as confidence builds, Indian companies will invest in Phase 2 and Phase 3 trials.