J&J to invest $15 mn on R&D in India

Looking to leverage on the advantages in India, global healthcare major Johnson and Johnson plans to invest about $15 million to scale up research and development in the country and shift some of the global researches in New Delhi.

"The company is scaling up research and development strength to about 100 people and could invest anything between $7 and $15 million," industry sources said. Company officials declined to comment.

J&J, which has about 55 people in its R&D centre in Mumbai, would be scaling up its pharmaceutical chemistry research in India and take the total strength to 100 by the end of 2007.

Moreover, the company is bringing some of the clinical researches to India from developed markets like the US and European Union, they added.

The company's decision to move the clinical researches from the developed countries to India has been influenced by the cost escalation in these markets and the advantages India offered.

Availablity of skilled manpower is one of the major attractions, which other pharmaceutical and healthcare companies are also trying to tap.

Last year J&J had invested about $6.3 billion in its global R&D activities, which was up 21 per cent from its spendings in 2004.

Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group