Global private equity companies are no longer interested in investing in pure pharmaceutical research and development companies with less attractive pipelines and in early-stage drug development, said Steve Arlington, global pharmaceuticals advisory services leader, PricewaterhouseCoopers (PwC). “Private equity players look at returns in the short run and drug discovery research is a high-risk business involving big investment for a longer period of 10-15 years. They prefer to invest in contract research companies or clinical trial companies or those having promising drug pipelines and products in late-stage clinical trials,” he said. In a recent trend, India's leading drug companies have hived off their R&D assets to separate companies to insulate the investors of parent companies from risks associated with long-term drug research, and to attract private equity funding for drug research. The hived-off facilities are yet to announce any private equity participation or strategic investment. […]