Posted on September 9, 2020
The future of pharma: 5 things that will change the pharmaceutical industry
The world is changing, and so the pharma market is. The pharmaceutical industry is one of the most strict and regulated markets, which is not strange because the entire industry is built on procedures and double-checks to guarantee safe medicines. The downside, however, is that it made the market conservative without room for innovation. We are at the beginning of some significant changes in the pharmaceutical industry: In this blog, I'll share with you 5 things that will change the pharma market in the next 10 years!
1. CULTURE IN PHARMA ORGANIZATIONS
The culture of a company refers to the attitude and behavior of an organization and its employees. Most companies in the pharmaceutical industry have a corporate culture where hierarchy defines their organization. This worked fine for years. But since half of the workforce are Millennials nowadays, things are starting to change.
Millennials don't care that much about the numbers on their paycheck and things like bonus structures. More important to them is that they share the vision of the company they work for. That's why your company culture is an essential part of convincing new talent to choose for your company.
These new young professionals under the age of 40, are looking for a company culture that allows them to become the best version of themselves. They want to know what the company values are and if they share or overlap with their values.
80% of millennials say that personal growth is the most important part of a company's culture. These agile cultures where you work in small groups where everyone is equal, are not limited to tech companies in Silicon Valley anymore. Also, large enterprises started to rewrite their culture.
2. POLITICS IN THE PHARMACEUTICAL INDUSTRY
At the beginning of the 20th century, most local pharmacies still used to produce medicines themselves.
Today, nearly all countries rely on China and India as the pharmacies of the world. They can produce large quantities of APIs and medicines at low costs. Since the corona crisis, countries in the world have realized that they are quite vulnerable when they are entirely dependent on another country.
Even India doesn't want to be dependent on the Intermediates and APIs from China. There need to be multiple sources for everything to work. In the case of political conflict, a shortage, or, as we have seen during the Corona crisis, a complete lockdown, billions of people will not have access to their medicines. Countries will reconsider the current supply chain of pharma and will have to accept that local production means that they will pay a higher price. I believe that India and China will remain the biggest pharma producing countries, for good reasons, but there should be some alternatives.
3. WORKING METHODS
We have learned during the current Corona crisis, that it's easier than we had expected to work from home. Everyone is now used to have meetings with video call software such as Zoom and Google Meet.
In the future, we will consider whether or not it's really necessary to enter a plane for a business meeting. Besides these video conferencing tools, there is lots of software to work more efficiently, like Google Drive, Slack, Trello. These tools have already proven to make work more efficient and exciting in other markets. The pharma market surely will also benefit from these tools.
4. ONLINE MARKETING WITHIN THE PHARMA SECTOR
Watching a movie, booking a flight, or listening to music. The way we're doing it now is entirely different compared to 15 years ago. The digital revolution has changed nearly all markets worldwide. It brought a lot of benefits. Companies who saw the change early have benefited a lot from the internet. At the same time, some huge market leaders like Blackberry and Blockbusters don't exist anymore because they were too focused on their own product.
Pharma companies have always focused on sales, exhibitions, advertising in magazines, and their distribution network. Current managers feel at home on the internet. They grew up with MSN messenger, MP3 players, and other digital technology. They started to take online marketing seriously and have caught up on their online visibility within their pharma organizations.
The future of pharma is digital, and companies will invest to reach their audience online. We made a video about How to digitize your API business.
5. SUSTAINABILITY IN THE PHARMACEUTICAL INDUSTRY
The production of pharmaceutical products harms the natural environment. Specifically, water pollution is harmful to animals and humans on a global scale. Everyone is becoming more aware of their ecological footprint; the pharma market will be challenged to reduce its pollution.
Chinese authorities have shut down raw material plants before to tackle air pollution. Sustainability will play an essential role in the next couple of years in our industry. Not only forced by local authorities but also from the bottom up by the new generation of people working in this industry.
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