Pharmaceutical Industry – Poised For A Leap
The pandemic at the start of this decade clearly established that the healthcare industry is an evergreen sector and reiterated the fact that “health” is of prime importance with everyone on this planet becoming more conscious of maintaining a healthy lifestyle and addressing health issues immediately.
In India too, the pharmaceutical industry has always been one of the most successful industries and one of the largest employers. The domestic pharmaceutical market in India, which was estimated at US$ 42 billion in 2021, is expected to grow to US$ 65 billion by 2024 and US$ 120-130 billion by 2030 at a CAGR of 12 per cent. Globally, India is the third largest producer by volume and ranks 14th by value. India is already the largest supplier of generics and vaccines around the world. This position is only expected to strengthen in the coming decade.
It is clearly evident that this sector is set to undergo major disruptive changes in the coming years. Not surprisingly the Budget 2023 saw increased allocation to healthcare. With the recent thrust to become self-sufficient and the “Make in India” focus, the industry is also getting the much-needed support from the government.
As with all industries, the pharma industry will also be deeply impacted by technology and innovation. While research and innovation will remain at the core of the industry, the companies will make use of AI and digitization as their principal strategy. Large companies will depend on the use of AI in many of their core functions including manufacturing, supply chain, and marketing. The companies will focus on enhancing the manufacturing facilities to be self-sufficient with APIs, raw materials, and intermediaries. They will strive to improve upon ‘operational excellence’ in order to optimize the costs and reduce the overheads.
Going forward, the industry will see a greater focus on branded generics, biosimilars, and innovator drugs. The rise in lifestyle diseases and chronic illnesses has propelled more Indian players to focus on specialty products to cater to the rising demand. “Wellness and health” is the “new mantra” for the millennials and GenZ. Nutraceuticals, a set of products that address general health and well-being, will be another segment that will give a tremendous boost to the pharmaceutical industry.
Traditional methods of reaching the customer – doctors and patients both included – will change with the power of digitization. D2C will slowly get accepted and companies will make use of technology to engage with the end consumer. E-pharmacy, which was non-existent until a few years ago, will change the way companies operate in the industry as it empowers them to reach their products to the remotest corner of the country. Accordingly, the companies have already begun engaging with their customers digitally to supplement the efforts of their sales team.
These disruptive strategies being adopted by the industry also substantially increases the demand for skilled manpower in the industry. Beyond the traditional roles, the industry now opens up a plethora of opportunities in specialized areas of regulatory functions, clinical research, clinical data management, and digital healthcare. The government’s focus on “affordable healthcare” also has opened up health insurance as an important career path in the industry. Talent acquisition and development will emerge as important goals for companies in the future. Skilling, reskilling, and upskilling of employees which were not the focus until recently are now suddenly becoming extremely crucial and hence, this will greatly benefit the future workforce in the industry.
The Indian pharma industry is at the crossroads of a revolutionary phase. The coming few years will see it grow exponentially in all aspects of the business. Technology, innovation, and a skilled workforce will be the key drivers for this growth. The industry is set to emerge as one of the largest contributors to the Indian economy as well as provide enormous employment opportunities to the future generation.
By Geetha Sriniwasan, Independent Consultant - Healthcare, Founder - PlatPharm
_20241010140125_original_image_2.webp)
_20241010001905_original_image_2.webp)