Considering the significant challenges faced by pharma supply chains, the future will no longer be about internal R&D, but instead about directing significant resources and efforts to collaborate with external supply networks and partners.
Constructing Innovation Supply Chains for the Pharmaceutical Industry
Pharma companies are reducing expenditures in R&D. Though many acknowledge that the majority of R&D cuts have been completed, this trend still exemplifies the major shakeup that has caused the industry to reevaluate its focus on innovation and examine the productivity of R&D. A recent study conducted by consulting firm Oliver Wyman concluded that “the value generated by $1 invested in pharma R&D has fallen by more than 70%.
Ensuring pharmaceutical supply chain effectiveness
The pharmaceutical and biotech industry is under severe pressure. Research & Development (R&D) costs are spiralling, development timelines are growing, payer pushback is increasing and consumers are becoming increasingly knowledgeable about care options. The industry is responding driving time out of development, becoming smarter about stopping projects early in the development cycle, and increasing efficiency through rationalisation or outsourcing of non-core activities.
New Supply Chain challenges for Pharmaceutical Industry
Healthcare reform, patent expiries and increased service requirements will require pharma-ceutical companies to adapt their business models to accommodate market changes. The coming years, reduced costs, greater agility and improved speed to market – whilst ensuring the often complex regulatory legal framework in countries are being met – will form a challenging operating landscape for companies in the industry.