The pharmaceutical industry is undergoing a massive transformation. Historically slow to adopt technology, this industry is now undergoing rapid change as a result of the development of several technologies. Artificial intelligence (AI), additive manufacturing, blockchain, and other Industry 4.0 technologies are among the prominent pharma industry trends.
Despite the slow start to the year, all of the stars are aligned for a flurry of deal activity across all areas of the sector. Many large pharma players are flush with cash (particularly those with COVID-19 treatments), biotech valuations have been normalising after years of a boom market, and the 2025 patent cliff is rapidly approaching, all of which makes for a strong deal environment.
Following are top 5 pharma trends to look forward:
- Artificial Intelligence: Artificial intelligence (AI) is speeding up the drug discovery and development processes. Startups are investigating the use of these technologies to address various challenges in the pharmaceutical industry, such as manufacturing process automation and optimization
- Big Data & Analytics: To analyse the massive amounts of data generated during the drug discovery and development process, the pharmaceutical industry requires high-performance systems. Pharmaceutical companies rely on third-party vendors to share data with collaborators, making data management a critical focus
- Precision Medicine: Precision medicine is based on the concept of treating each patient as an individual. New insights into how the human body responds to drugs are being provided by advances in omic and data analysis
- Extended Reality (XR): Mixed reality (MR), virtual reality (VR), and augmented reality (AR) are allowing for unprecedented visualisations. Pharma startups are investigating the potential of augmented reality technologies in pharmaceutical research and manufacturing
- Real-World Data: Real-world data (RWD) and real-world evidence (RWE) are transforming pharmaceutical innovation. RWD includes routinely collected patient health status, treatment data, and health reports
- Curative Therapies: There is a paradigm shift occurring in the treatment of illnesses, from disease management to disease cure. Curative therapies, such as cell and gene therapies, are transforming the way we treat chronic diseases and difficult-to-treat conditions by removing the need for long-term treatments
In 2021, a record 84 novel active substances (NASs) were initially launched globally, more than doubling the number launched five years ago. This brings the total number of launches over the last two decades to 883.
Venture capital deal activity and investment flows in the United States have increased in the last two years as interest in life sciences has increased, with over 2,000 deals and $47bn in deal value expected in 2021. Furthermore, the 15 largest pharmaceutical companies will invest a record $133bn in R&D in 2021, a 44% increase over 2016.
Given broader labour changes, supply shortages, and constantly changing supply chain strategies and operations, maintaining a focus on quality can be difficult. However, the downside can have a significant impact on businesses, including the inability to manufacture products.
Global medicine spending is expected to reach $1.6tn by 2025, growing at a rate of 3-6% per year.
Overall volume is expected to increase by 1.5% in days of therapy through 2026, driven by 2% CAGR pharmerging growth, while low-income countries are expected to grow at only 0.6% CAGR.
For details on overview of the Industry and Regional landscape feel free to refer to the following Pharmaceutical Industry report from CrispIdea.
–By Shreya Shetty and Rashmitha Selvaraj
Shreya Shetty is an Industry Research Analyst at CrispIdea. She covers industry such as Cyber-security, Ad-Healthcare IT, Cloud, Semiconductor, etc.
Rashmitha Selvaraj is relationship manager who looks into Investor Relations and Corporate Affairs at CrispIdea and she also looks after the digital communication of the company.