This document discusses the transformation of the global biopharmaceutical industry from small-molecule chemistry drugs to large-molecule biological drugs due to advances in basic science. It focuses on the implications for the Indian bio-pharmaceutical industry. Analysis shows Indian firms have weak innovation and science capabilities for large molecules. Firm interviews revealed issues with human capital, competition, and regulation. Econometric analysis of regional drug demand in India found that domestic firms can produce more, charge lower prices than MNCs, and early movers gain market share through greater variety. The industry needs more investment in bio-science human capital and resolution of regulatory uncertainty to succeed in developing large molecule drugs.