EY Parthenon, a prominent strategy consulting firm, in collaboration with the Organisation of Pharmaceutical Producers of India (OPPI), has unveiled a comprehensive report titled "Viksit Bharat@2047: Transforming India from pharmacy of the world to pharma powerhouse for the world." Released on Thursday, the report delves into the transformation needed for the Indian pharmaceutical industry to enhance its global presence and competitiveness, targeting a market value of US$450 billion by 2047.
The primary research conducted by EY-P and OPPI involved consultations with top executives from numerous leading Indian and global pharmaceutical firms between September and October 2024. This exercise was aimed at gathering insights regarding critical growth areas for the sector. A significant takeaway highlighted the necessity for a cohesive vision centred around innovation, emphasizing the importance of fostering collaborations across various stakeholders, including startups and academic institutions. Furthermore, the report identified talent and quality as paramount drivers for future growth.
Key areas of focus for boosting innovation and research and development within the industry were discussed in the report. Approximately 86% of pharmaceutical leaders indicated that nurturing ecosystem collaboration is vital; 79% believed that artificial intelligence (AI) and machine learning (ML) technologies can significantly enhance efficiency and productivity, especially in drug discovery and clinical development processes. Additionally, 50% of the leaders stressed that simplifying regulatory frameworks is crucial for the industry's advancement.
Suresh Subramanian, Partner and National Life Sciences Leader at EY Parthenon India, expressed optimism about the pharmaceutical sector's trajectory. He stated that the report underscores notable advancements in crucial components like Active Pharmaceutical Ingredients (APIs) and Key Starting Materials (KSMs), as well as the increasingly pivotal role that digital technologies are playing in driving innovation. Subramanian highlighted the importance of collaborative efforts involving the industry, government, and academia as essential for transitioning India into a prominent global pharmaceutical powerhouse over the next decade.
Anil Matai, Director General of OPPI, noted that India's strategy to transform into a global pharma powerhouse is grounded in innovation, quality, and a streamlined pharmaceutical supply chain. The report serves as both an ambitious roadmap and a call for collective action that aligns with India's broader aspirations under the Amrit Kaal initiative. It stresses crucial themes such as the potential of value-driven research, the significance of high-impact innovation, and the optimisation of a global pharma supply chain to enhance equitable healthcare access.
The report further detailed findings from the CXO survey that indicated a unified consensus among experts about India's evolution towards self-sufficiency in APIs and KSMs. Key areas for improvement include cost reduction, productivity enhancement, and minimising environmental impacts. Approximately 75% of leaders affirmed that embracing sustainable practices is essential, while 63% pointed to the necessity of enhancing infrastructure and operational efficiency.
The survey results also placed emphasis on the need for a strong innovation ecosystem, acknowledging that securing investments remains a crucial challenge. Nearly half of the leaders surveyed advocated for increased financing avenues, particularly seed funding for startups and biotech firms, as well as patient funding from private equity sources.
On the front of Contract Research and Development Manufacturing Organisations (CRDMO), a substantial 80% of experts concurred that new legislative measures, such as the US BIOSECURE Act, present significant opportunities. However, they also asserted that improving scale and efficiency to align with global industry leaders is critical. Furthermore, significant investment in advanced manufacturing technologies is seen as necessary to enhance cost-efficiency and operational speed.
Quality standards were also highlighted as a cornerstone for the future of the pharma sector. A majority of the CXOs, 63%, advocated for a single global product standard to streamline manufacturing processes and enhance compliance. The call for a robust quality culture, mandatory quality standards for all small and medium-sized enterprises, and increased digitalisation and automation was emphasised to maintain high industry standards.
The survey results indicate a growing recognition of the need for innovative financing models and patient-centric healthcare initiatives to tackle healthcare accessibility challenges. Furthermore, nearly 67% of leaders expressed concern over the limited availability of skilled talent in the pharmaceutical sector. There is a pressing need to encourage students towards scientific fields to address the shortage of specialists with the requisite knowledge and experience in therapeutic areas and niche therapies.
The insights shared by industry experts also point to the transformative potential of digital health technologies in improving healthcare delivery and outcomes, particularly in underserved regions. The ongoing implementation of the Ayushman Bharat Digital Mission underscores the demand for policies that promote digital adoption among public and private healthcare systems.
In summary, the EY Parthenon and OPPI report lays out a detailed vision for the Indian pharmaceutical sector's evolution, signalling pivotal opportunities for growth anchored in innovation, collaboration, and talent development, all crucial for solidifying India's status as a global leader in the pharmaceutical industry by 2047.
Source: Noah Wire Services