It is very characteristic of a pharma company to invest millions of dollars in new drug development with very little success rate. They then face pressure from governments and consumers to keep the prices of such medicines low for it to be accessible to everyone. Consequently, pharma companies are looking for new ways to increase their revenue stream and improve efficiency in every aspect of their business. Innovations in pharma procurement along with advancements in technology can significantly boost profitability in the pharma industry and provide them a competitive advantage.
Current Trends in Pharmaceutical Industry
Reinvesting in R&D Process
For a very long time, big pharma players in this industry were relying on old techniques and technology for drug discovery. Since companies started using big data analytics, they have significantly improved their success rates for drug discovery. Additionally, using real-world evidence has equipped them to speed up the drug discovery process, decrease R&D costs, and improve time-to-market.
Resource Reallocation in the Emerging Markets
The pharma industry has been shifting its focus from developed nations to emerging markets as the growth curve in the developed parts of the world continues to flatten. The emerging markets which are relatively underserved have a vast growth potential for key suppliers in the pharma industry. The suppliers are exploring ways to increase the efficiency of the pharmaceutical supply chain by identifying potential locations for developing and manufacturing medicines. For instance, the developed parts of the world are looking at the Asian and Latin American region to outsource the process of clinical research.
New Modes of Healthcare Delivery
Hospitals and healthcare specialists are driving up the overall cost of healthcare. Companies are looking for ways to cut down costs and improve outcomes by trying to reduce reliance on hospitals and specialists. The recent advancements in medicines along with technological advancements such as fitness tracker and health monitoring devices has made self-medication and telemedicine possible. Such disruption in the pharmaceutical supply chain could significantly improve the costs, efficiency, and profitability of the pharma industry.
Increasing Emphasis on Outcomes
The increasing emphasis on outcomes is the most prominent pharma trend currently. Majority of the players in the pharma industry are modifying their existing models such as a fee for service models in favor of outcome-based models. Such measures help reduce wastages and fraud mostly in the healthcare reimbursement sector. The pharmaceutical supply chain needs to be highly active by closely supervising and monitoring the value delivery process to the patients in order to improve outcomes.
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