**London**: In a podcast with Aman Wasan of ArisGlobal, insights were shared on the necessity of advanced automation to navigate increasing costs and competition in pharmaceutical R&D, highlighting the potential for AI to optimise operations and enhance drug development efficiency in a challenging economic landscape.
In a recent podcast featuring Aman Wasan, CEO of ArisGlobal, insights were shared concerning the imperative financial benefits of advanced automation in the pharmaceutical industry. The podcast, presented by Nordic Capital, highlighted the pressing need for life science R&D organisations to navigate a landscape characterised by rising costs, high interest rates, global supply chain challenges, and increased competition, all while aiming to sustain or grow profitability.
As drug development evolves, pharmaceutical companies are confronted with significant market pressures that necessitate cost efficiency and innovative solutions. The convergence of economic issues and transformative changes in the types of drug products is prompting companies to reconsider their operational strategies. In the United States, the introduction of the Inflation Reduction Act adds another layer of complexity by directly impacting the profit potential and funding for ongoing research and development (R&D).
Wasan mentioned that Boards of Directors are increasingly mandating substantial cost reductions, with some seeking to cut operational costs by as much as 80% over the next three years. This necessary reframing of strategy does not allow for poor choices in drug development or material procurement, thus placing a spotlight on the optimisation of R&D services.
Nordic Capital’s observations suggest that large pharmaceutical entities will need to eliminate an estimated 10-15% of their total cost base merely to maintain current operational activities. In order to support more sustainable models, greater reductions across the entire value chain are essential. This context underscores the potential of advanced automation as a pivotal factor in enabling firms to address these challenges, transitioning artificial intelligence (AI) from a supplementary resource to a critical operational necessity.
Investment firms, including Nordic Capital, are actively scouting for pharmaceutical companies that leverage advanced technologies and superior data analytics to tackle operational and financial hurdles. This technological focus includes tools capable of capturing and processing data more effectively, as well as those that facilitate the identification of new therapeutic innovations, thereby reducing vulnerability to current market pressures.
For leaders in R&D, the strategic aim has shifted towards maximising investment into the drug discovery and development pipeline, with an emphasis on cost efficiency. The application of latest technological innovations is deemed essential in optimising enabling functions that support R&D efforts. Companies are encouraged to eradicate inefficiencies—referred to as ‘waste’—within their current workflows, aiming for measurable improvements in performance. This can be particularly relevant to safety protocols and regulatory requirements, where automation has the potential to enhance process efficiency and allow professional teams to concentrate their expertise on areas of greater significance.
For successful integration of AI and automation, firms must establish comprehensive platforms that are compatible with various applications, ensuring efficient data integration and ongoing returns on investment that amplify over time. Participation in industry events and networking opportunities has become crucial for companies to evolve their strategies, glean insights, and refine their operational paradigms according to best practices in the field.
Looking ahead, the drive for transformation within the R&D sector is vital not only for improving productivity and cost-effectiveness but also for fostering innovation, responding to investors’ expectations for relevance in the competitive pharmaceutical landscape. There is a growing focus on addressing specific diseases at a granular level, allowing for the development of highly targeted therapies. This approach is supported by smarter data utilisation, which can facilitate economies of scale in innovation even while drug discovery costs continue to soar.
As pharmaceutical companies face the dual challenge of escalating discovery and development costs alongside the need for innovative solutions to treat a vast array of unresolved diseases, optimising essential processes and capitalising on technological advancements remains a priority. Achieving a sustainable operational model allows firms to refocus their efforts on advancing therapeutic pipelines and ensuring economic viability in an increasingly complex pharmaceutical sector.
Source: Noah Wire Services
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