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Pharmaceutical sector is very technological intensive and far more innovative in terms of new
product/process innovations when compared to low technology sectors such as textiles and
agro -processing. But in the context of LDCs, it confirms the extensive relationship between
firms and the knowledge systems they are entrenched in. The difficult state of the domestic
knowledge system in country, forces firms operating in what is normally a high-technology
sector to focus on manufacturing and excludes the more knowledge-intensive activities from
their reach.
This lack of capacity to locally produce APIs reduces the competitiveness of the firms
enormously, since between 30 and 50 per cent of the production price of the drugs is taken over
by the expenses of securing APIs from external sources. The top local firms (around six in
total) are trying to secure skills and scientific infrastructure in order to venture into API
production and reverse engineering. Lacking scientific infrastructure includes missing human
resources as well as the incapacity of domestic research and development institutes, (RDIs)
and universities in assisting the firms in developing these chemical synthesis skills due to
under-funding of research, disillusion of scientists and researchers and lack of a cogent focus
amongst core university faculties that do work on medical sciences. This disarticulation
between various components of the domestic knowledge systems illustrates a prevailing
phenomenon that prevents effective learning and absorption by the enterprise sector in most
LDCs. Most exporting firms in the survey pointed out cheap labor costs as their main advantage
in the international markets, but even the biggest firms like Square Pharmaceuticals were
skeptical about whether they could capture markets in other African and Asian countries on the
basis of just cheap labor when they did not possess the economies of scale and reverse
engineering skills on par with their Indian counterparts.
So, to enjoy even higher efficiency and growth in the pharmaceutical sector more and more
focus should be given to improvements in technology to keep competitive capacity favorable
with regard to global scenario of pharmaceutical sector.
6.2.2 Six Tech Trends that are shaping the Pharmaceutical Industries
Life sciences companies face unprecedented challenges as revenues come under pressure as a
consequence of pricing pressures caused by healthcare reforms and austerity measures,
increased competition, and challenges in bringing new drugs and other products to market.
They are responding by focusing on growth opportunities in emerging markets, pursuing
breakthrough innovation through collaboration with industry and academic partners,
challenging and revolutionizing the traditional sales, marketing and research and development
(R&D) operating models and focusing on operational efficiency. Shifts in the attitudes of
patients and healthcare professionals and emerging technologies are changing the relationship
life sciences companies have with their traditional customers and creating new opportunities
for collaboration, which will have a fundamental impact on the future success of businesses.
In a recent Accenture report, Technology Vision: What It Means for Life Sciences, the firm
found the following six technology trends will continue to influence the pharmaceutical
industry over the next three to five years.
6.3.7 Telecare
Telecare involves the use of digital communications technology (audio and visual) to provide
healthcare consultations and services to patients remotely at home. Telecare has various
potential benefits: it puts patients at the centre of their care and supports personalised medicine;
it improves access to healthcare by reducing the need for hospital attendance (for people with
poor mobility, or those in remote areas); and it can reduce the travelling times and costs of
healthcare professionals. However, the exact benefits provided by telecare vary between
different applications and care scenarios, and, at present, the literature suggests that more
evidence of outcome benefits, and more cost-effectiveness data are required to justify further
investment in telecare. In pharmacy, use of remote consultations, together with EPS release 2
and an internet pharmacy supply service, could transform the way that pharmacy services are
provided. However, adoption of telecare in pharmacy would be dependent on the availability
of reliable communications and integration architectures, the willingness of pharmacy
operators to invest in these and also a critical mass of domestic use of digital technologies in
all patient demographics.
6.4 Impact of technological revolution in the pharmaceutical
industry:
Lately everyone has been talking about the fact that the world is in the midst of the 4th
industrial revolution. This revolution, or technological revolution, has kicked in during the last
few years, and it is here to stay. It has created massive hype and advancements in many fields,
and is changing the way manufacturers operates.
Technological Revolution is all about digitalization and automation of the manufacturing
world. While manufacturing used to heavily rely on the human factor, industry 4.0 is based on
autonomous, computerized processes. This automation theme utilizes data and analytics for
improving manufacturing processes, management decision making processes and quality
assurance.