The pharmaceutical companies are facing a new set of challenges as a new era of technological and operational excellence has begun. The time is ripe for the enterprises to rethink their strategies as merely upgrading their processes will not be enough. Life sciences and healthcare analytics are already going through a data revolution. The race moves from a relatively straightforward sales and marketing model to an access-driven commercial model. Commercial Analytics for Life Sciences will be crucial to driving a successful drug launch and staying competitive in the rapidly evolving pharma manufacturing landscape.
Let’s look at a few of these challenges that the industry is facing today:
Competition from Biosimilars a Driver for Innovation: Biosimilar drugs are similar in composition to already existing drugs and have gone through the same rigorous standards of testing as any other FDA-approved drug. Such drugs are capable of bringing the benefits of pricier drugs to consumers at a relatively low price without compromising on efficacy and safety. Innovation is key to advances in medicine development and in healthcare as much as in other areas of business and science.; but innovation is used as the reason to prevent competition in biologic products that has occurred with the initiation of a pathway for FDA approval of biosimilars.
Pricing Pressures due to Increased Scrutiny and Value-based Payments: The healthcare industry is going through a huge shift where payments are determined on the basis of value and not volume or service. This approach means that patient outcomes and efficacy drive payments and patients and caregivers can use medical data to determine the same. While the pharma companies are also looking to embrace value-based purchasing, they would find it difficult to prove drug efficacy within a suitable time-frame, making it tough for new drugs to gain market share.
Government Policies for Promoting Prevention of Diseases and Containing Healthcare Costs: Pharma industry is also facing serious challenges due to government policies across the world move towards controlling healthcare costs for the people. Developed nations are looking to contain the medical costs and nations in the emerging market are focused on promoting generic drugs, particularly those developed locally, in a bid to reduce costs. For Big Pharma, access to these markets requires a major shift in strategy.
Furthermore, government policies in many countries, especially in a post-COVID landscape, are oriented towards promoting the prevention of diseases rather than treatment. Such an approach is crucial in keeping populations healthy and avoid over-stretching government resources. Combine this with stricter drug regulations, and the pharma industry is looking at a challenge that would require judicial use of their resources and innovative approaches for leveraging new technology.
Leveraging Data for Better Business Outcomes
The biggest asset of enterprise-level pharmaceutical companies is their data. They can reap far-reaching benefits by using the right kind of technologies and business strategies to leverage their data and streamline their processes to improve operational efficiency.
Using an AI-powered approach to modernize, manage, and transform their commercial business and technology operations, they can:
- Reach market faster by overcoming delays in drug trials
- Mitigate risk by determining the viability of a drug under trial early in the cycle
- Prove efficacy of a drug faster by leveraging real-world data along with other sources
- Improve drug performance by including post-market data and other performance feedback
Saama Analytics new AI-enabled approach to manage and optimize pharma commercial business and operations. ACE (Analytics for Commercial Excellence for Life Sciences) uses optimized data orchestration, machine learning, actionable insights and applications that ensure commercial success from launch through market maturity.
Find out more about our capabilities here.