Telangana Bets Big on Drug Discovery: Hyderabad Poised to Become Global Hub for Next-Generation Therapies
Key Insights
Telangana government is developing an integrated ecosystem to move Hyderabad up the pharmaceutical value chain from manufacturing to drug discovery and innovation.
The strategy includes a 100-acre biologics cluster, a Rs 1,000-crore Life Sciences Fund, and shared infrastructure like the 1Bio facility to lower barriers for startups and researchers.
Hyderabad already contributes nearly one-third of global vaccine output, providing a strong foundation for expansion into cell and gene therapies, biosimilars, and precision medicine.
The Telangana government is charting an ambitious course to transform Hyderabad from a pharmaceutical manufacturing powerhouse into a global hub for drug discovery and next-generation therapies. The plan, currently under discussion with industry stakeholders and technology bodies including Nasscom (search), aims to create an integrated ecosystem that brings together global and Indian pharmaceutical companies, global capability centres (GCCs), research institutions, startups, and investors.
"We are creating the conditions for the next generation of therapies to be discovered, developed and delivered from Telangana," IT and industries minister D Sridhar Babu told ET.
Hyderabad already ranks among the world's leading pharmaceutical manufacturing hubs, contributing nearly a third of the global vaccine output. This established foundation provides a strategic springboard for the city's expansion into higher-value drug discovery and innovation.
A Different Kind of Industrial Policy
Unlike conventional industrial policies that rely on subsidies or large capital investments, Telangana's approach focuses on lowering the cost and complexity of drug discovery. Rather than spending billions on a government-led drug discovery programme, the state intends to create shared infrastructure, funding mechanisms, and partnerships that enable private companies, researchers, and startups to discover the next generation of drugs from Hyderabad.
A cornerstone of this strategy is 1Bio, Telangana's shared biomanufacturing and research infrastructure facility. The facility allows startups and researchers to access advanced research infrastructure on a pay-per-use basis, significantly reducing the capital burden of early-stage drug discovery and commercialisation.
Dedicated Infrastructure for Advanced Therapies
As part of the larger vision, the state is planning a dedicated 100-acre biologics and advanced therapies cluster within the proposed 2,100-acre life sciences zone in Bharat Future City. The cluster will focus on emerging areas including cell and gene therapies, biosimilars, precision medicine, and novel biologics.
The state is also setting up a Rs 25-30 crore Centre of Excellence for Antimicrobial Resistance (AMR) in collaboration with the central government. Hiring is currently underway, and the centre is expected to open soon.
Funding the Future of Deep Science
To provide long-term risk capital for deep-science ventures, Telangana is establishing a Rs 1,000-crore Life Sciences Fund. The government is also exploring ways to tap into the Centre's Rs 1 lakh-crore Research, Development and Innovation (RDI) fund.
The strategy builds on an already robust ecosystem that includes Genome Valley, the Medical Devices Park, more than 20 life sciences incubators, over 40 national research institutions, and a growing base of global pharmaceutical GCCs.
Harnessing AI and Global Partnerships
As the plan takes shape, the government aims to connect pharmaceutical companies, researchers, and startups with Hyderabad's technology ecosystem to harness artificial intelligence for faster drug discovery. It also plans to reach out to more global pharmaceutical companies to build drug discovery capabilities in Hyderabad, while encouraging existing pharma GCCs in the city to move towards high-value R&D, clinical development, and innovation.
"We are actively rewiring the ecosystem for deep science by building advanced infrastructure and closing skill gaps through industry partnerships," Sarvesh Singh, CEO of Telangana Life Sciences (search), told ET.