Pharmaceutical companies are at a significant crossroads in terms of how they engage with customers, innovate, and adopt digital capabilities. On one hand, there is an increasing demand for personalization of drugs, while on the other hand, global inflation and uncertain market trends are causing challenges for the industry. These factors, in addition to a lower number of clinical trials during the pandemic, caused a downturn in 2023.  

2024 has seen a revival for pharmaceutical companies, driven by increased consumer spending and stabilization of inflation in the US and EU regions. Clinical trials have also resumed as companies strive to develop and launch safer and more effective drugs while containing their R&D and manufacturing costs. We believe personalized drugs and patient care plans, technology adoption by pharmaceutical companies, improved quality and access to drugs, and mergers and acquisitions are the significant trends that will affect the pharmaceutical industry in 2024 and beyond. 

Personalized Drugs and Patient Care Plans 

As the industry evolves, a combination of new therapeutic developments and changing healthcare policies is reshaping its landscape. The future of this industry will not only be focused on developing new drugs but also on providing more holistic and focused patient care. Personalized patient care helps healthcare providers make accurate diagnosis and tailor a suitable treatment plan for patients resulting in more effective recovery and results. This can also reduce healthcare costs by avoiding unnecessary procedures and medications that may not be effective for an individual patient. This trend is expected to continue this year and beyond. Areas such as weight management/obesity, autoimmune diseases, oncology, and diabetes are expected to grow. In addition to treating diabetes, the inclusion of GLP-1 drugs for treating obesity and weight management issues is expected to be a significant growth driver and the demand for such drugs for weight loss has never been higher. Companies have also started to look for personalization opportunities in this domain.  For example, Eli Lilly, which manufactures Tirzepetide – an advanced GLP-1 drug, has started their distribution network along with personalized patient coaching. Innovations such as cell therapy and precision medicines will also play an important role. 

Technology Adoption 

Digital transformation and data can help pharma companies to increase their productivity and operational efficiency. Developing and establishing a secure digital core that includes a modern data foundation, flexible AI architecture, and smart business applications are key to driving growth and innovation. These capabilities allow companies to collect and integrate data across various platforms and locations. The data can then be leveraged to provide key business insights to decision-makers and managers. AI and ML can be of great use to generate intelligent business reports to reflect key business KPI’s and interpret market trends which in turn helps optimize business processes and maintain organizational agility. AI can also be adopted to deliver personalized patient care plans and has the potential to revolutionize disease detection and prevention. By analyzing large data sets, AI algorithms can detect subtle trends, patterns, and risk factors which can potentially contribute to certain diseases and epidemics. As per recent reports, Lilly is collaborating with OpenAI to discover novel medicines for treating drug-resistant bacterial infections. Such innovations will continue to revolutionize the way pharmaceutical companies operate. 

In the coming years, the ability to leverage AI and ML (Machine Learning) technologies will remain a critical differentiating factor which will provide pharmaceutical companies a key lever for gaining strategic advantage in the market. Such technologies can potentially be adopted across the drug development cycle, from the discovery of candidate molecules to streamlining clinical trials, resulting in faster time to market, while helping to reduce development, manufacturing, and logistical costs. Pharmaceutical companies also generate a huge amount of data from various sources. Managing such a huge volume of data efficiently while maintaining various regulatory compliances like IDMP, HIPAA, and GDPR is an ever-increasing challenge. Technology can play a key role in effectively managing this data in a secure and regulated manner while ensuring adequate monitoring and governance. There is also a need to integrate with third-party data providers to validate, enrich, and cleanse the data pharmaceutical companies are accumulating. Companies realize the value of maintaining high-quality data to drive their futuristic digital initiatives. Hence, as companies look to embrace newer technologies, a strong focus will remain on traditional areas such as master data management, data governance, and data quality. Senior industry leaders, such as Vas Narasimhan, CEO of Novartis, continue to emphasize the need for having access to high-quality, trusted data and the importance it has in the success of any digital initiative.  We expect companies to continue to invest in consolidating and streamlining their data assets, and this trend will only get stronger as more companies strive to make their business customer-focused, and data-driven. 

Improved Quality and Access 

Name-brand drugs are often expensive due to high initial investments in R&D and hence over a period of time, customers tend to move to cheaper options. Such migrations increase patient’s access to drugs while increasing pressure on pharma companies to provide high-quality generics at competitive prices. In addition to this, there are several existing and proposed policies focused on drug price reform and control. These factors mean that making high-quality drugs available at reasonable prices is still a challenge. The entry of Chinese pharmaceutical companies in Europe is also contributing to the evolving dynamics and pricing of pharmaceuticals. Per the European Parliament, the EU is 85-90% dependent on the Chinese market for all ingredients and 33% dependent on it for active ingredients. This poses critical challenges in terms of access and quality control, hence forcing policymakers to reevaluate their strategy to counter over-dependence on a single source.   

As per the 2023 report published by the WHO, 2021 saw a new high in global spending on healthcare. This reached US$ 9.8 trillion or 10.3% of global gross domestic product (GDP). Hence, debates around drug affordability, accessibility, and the strategies of payers in managing healthcare costs continue to remain a challenge for all parties concerned. Changes in policies and formulary decisions are also evident. Such adjustments are typically aimed at mitigating costs while avoiding drug overuse/abuse, indicating a greater level of scrutiny for access to critical and high-cost medications. The emphasis on policies to optimize access will continue to compete with efforts to ensure drugs are medically necessary. 

Mergers and Acquisitions  

Big Pharma will continue to focus on consolidating its market share and product pipelines through M&A. One such example is Pfizer’s acquisition of Seagen in a deal worth $43 billion. However, due to pushback from the United States Federal Trade Commission (FTC) on M&A, and high debt leverage, such large acquisitions will remain at moderate levels. At the same time, greater activity can be expected in smaller-sized acquisitions. Per a report published by S&P Global, the pharmaceutical industry will see robust growth through 2027.  

To conclude, the pharmaceutical industry will continue to see sturdy growth through 2024 and beyond.  Innovation and technology adoption will play a crucial role in this growth story while personalized health plans and policies to optimize access to high quality drugs will be significant contributing factors. M&A will continue to play a role but at relatively moderate levels; large acquisitions may be few and far between. However, as discussed above, there are some challenges and pitfalls that the industry needs to remain conscious of to ensure sustained growth and development.  

How can Fresh Gravity help?  

At Fresh Gravity, our team of domain experts and technology consultants have extensive experience working with some of the biggest pharmaceutical companies. We strive to enable and empower our customers by providing business-focused solutions on master data management, data quality, and governance. We have experts with hands-on experience working with and building cutting-edge solutions using AI/ML tools and various data platforms. We have also developed several in-house solutions to help our customers in areas such as clinical study protocol digitization, clinical study automation, IDMP compliance, and clinical data repositories. To know more about our offerings, please reach out to us at info@freshgravity.com

The post Pharma Industry Trends in 2024 & Beyond appeared first on Fresh Gravity.

Data governance has become the foundation for organizations striving to harness the power of their data while ensuring compliance, security, and ethical use. In this blog, we delve into significant advancements within the data governance landscape throughout 2023 and offer insights and forecasts for the year ahead.  

Reflections from 2023 

Rise of AI-driven Data Governance 

In 2023, we witnessed a significant shift towards the integration of artificial intelligence (AI) in data governance practices. Organizations began leveraging AI tools to automate data classification, enforce compliance policies, and detect anomalies. Machine learning algorithms played a crucial role in identifying patterns, predicting potential breaches, and streamlining the overall data governance process. AI not only enhanced efficiency but also enabled organizations to adapt swiftly to the dynamic data landscape. 

Focus on Ethical Data Use 

The ethical use of data took center stage in 2023 as organizations faced increasing scrutiny and public awareness regarding data privacy and responsible AI practices. Companies realized the importance of establishing ethical guidelines and frameworks within their data governance strategies. Transparency, consent management, and responsible handling of sensitive information became paramount. This shift contributed to building trust with customers and aligned organizations with emerging data protection regulations. 

Collaborative Data Governance Ecosystems 

In 2023, organizations began moving away from siloed approaches to data governance, acknowledging the importance of a collaborative approach across departments. Data governance initiatives became more holistic, involving stakeholders from IT, legal, compliance, and business units. This collaborative approach facilitated a more comprehensive understanding of data flows, dependencies, and business impact. It also helped establish a unified data governance framework that could adapt to the organization’s evolving needs. 

As we reflect on the transformations in data governance from 2023, it is evident that the landscape will continue to evolve in 2024. 

Predictions for 2024 

Integration of Blockchain for Immutable Data Records 

In 2024, we predict an increased integration of blockchain technology in data governance frameworks. Blockchain’s inherent characteristics such as immutability and decentralized verification make it an ideal solution for maintaining transparent and tamper-proof data records. This integration will enhance data integrity, provide a verifiable audit trail, and contribute to building trust in data-driven decision-making processes. 

Emphasis on Explainable AI in Data Governance 

As AI continues to play a pivotal role in data governance, we predict that there will be a heightened focus on explainable AI in 2024 wherein organizations will demand transparency and interpretability in AI algorithms to understand how decisions are made. Explainable AI will become a crucial component in ensuring compliance, addressing bias, and building trust among stakeholders who rely on AI-driven insights for decision-making. 

Dynamic Data Governance for Real-Time Compliance 

The regulatory landscape is evolving rapidly, and in 2024, we anticipate a shift toward dynamic data governance to accommodate real-time compliance requirements. Organizations will adopt agile data governance frameworks that can adapt swiftly to regulatory changes, ensuring continuous compliance and reducing the risk of regulatory penalties. Automation will play a key role in enabling organizations to stay ahead of compliance challenges. 

The implementation of advanced technologies, a heightened focus on ethics, and collaborative approaches will be instrumental in shaping the future of data governance. Organizations that embrace these trends and proactively adapt to the changing data governance landscape will position themselves for success in an increasingly data-driven world. 

How can Fresh Gravity help navigate this ever-evolving landscape of data governance? 

Fresh Gravity has immense experience and expertise to help organizations establish robust data management frameworks, implement best practices, and ensure compliance with evolving regulations. We offer tailored solutions for data classification, access controls, and privacy measures contributing to improved data quality and security. Additionally, we help our clients adopt innovative solutions that align with the dynamic needs of the data governance landscape by staying abreast of emerging technologies. Through consultation, implementation support, and ongoing collaboration, we play a pivotal role in helping organizations adapt and thrive in the complex world of data governance. To know more about our services, please write to us at info@freshgravity.com. 

The post Navigating the Data Governance Landscape: Reflections from 2023 and Predictions for 2024 appeared first on Fresh Gravity.