Use of Artificial Intelligence and Digital Therapeutics by Top Pharma

Companies:

Pfizer

It uses machine learning algorithms to identify the best patient population for clinical trials and monitor
patient health.

Insilico Medicine

Uses AI algorithms to analyze data from millions of molecules to predict which ones are most likely to be
effective drug candidates.

Bayer

Collaborates with an AI-driven drug discovery business on early research initiatives to find potential
therapeutic candidates for cancer.

Uses AI in every step of the research and development chain to make the drug-making process safer,
quicker, and less costly.
 Computer vision for drug manufacturing
Drug Discovery
AI-based computer vision systems have
AI models can be taught biochemistry
various implications in drug manufacturing.
to help in discovering new drugs and While producing drugs, the quality assurance
making the drug discovery process of each drug unit can be a time-consuming
and tedious task if done manually.
more efficient.

AI pharma market growth from 2020 to 2030

Predictive forecasting Clinic Trials:

Artificial intelligence helps in predicting Artificial intelligence helps predict and
pandemics and seasonal illnesses. This identify the appropriate candidates for
helps pharmaceutical companies to drug trials based on historical records. It
prepare their supply chains to eliminate can also help extract meaningful insight to
volatility and easily match demand with design effective clinical trials and monitor
supply. patients while they are being treated.
What makes India Special?

Did you know the Indian pharmaceutical industry is worth approximately US$50 billion, with
over US$25 billion of the value coming from exports, and this value is growing every day?
Yes, India is thriving at its best in the pharmaceutical industry. We play an integral role in the
global pharmaceutical industry and are ranked third in global pharmaceutical production.
So, let's take a quick view on some fantastic Indian Pharmacy Industry growth trends:
 The market size of India's pharmaceuticals industry is expected to reach US$ 65 billion
by 2024 and ~US$ 130 billion by 2030
 Largest provider of generic medicines globally
 Occupies a 20% share of the global supply of generic medicine
 Supplies over 50% of Africa’s requirement for generics medicine, ~40% in the US and
~25% in the UK
 3rd most prominent destination for biotechnology in the Asia Pacific
 Among the top 12 destinations for biotechnology globally
 Fulfills about 60% of the global vaccination demand
 The highest number of US-FDA-compliant Pharma plants outside of the USA
 Home to more than 3,000 pharma companies with a strong network
 Rich in a highly skilled resource pool
Redefining the supply chain of the Pharmaceutical Industry:
Concerns:
 Best-in-class pharma companies globally have an inventory period of 64 days, compared
to Indian counterparts' 98 days.
 The report added that India's supply chain, logistics, and warehousing costs are 15
percent higher than other countries.
 The current challenges of the pharmaceutical and medical device supply chain are
counterfeit medicines and devices, pilferage, wastage, medication errors, and lack of
timely availability, which puts patient safety at risk.
 The study's findings, released on 29th April 2023, show that in the current scenario, over
80 percent of Pharmaceutical and Medical Device Manufacturers do not have product
visibility until the point of care.
How is India overhauling its supply chain?
The pharmaceutical supply chain in India has undergone significant transformation spurred by
globalization, technological advancements, regulatory shifts, and rising healthcare product demand.

 The focus has shifted from manual and transactional processes to automation and strategic
innovation.
 Following the COVID-19 pandemic, pharmaceutical supply chains have evolved to become more
agile, transparent, and resilient.
 The Companies have embraced advanced technologies like machine learning and artificial
intelligence.
 Significant ongoing investment is being made in automating manufacturing and packaging
processes to enhance productivity, operational cost efficiency, and labeling precision.
 The implementation of on-demand delivery models, employing strategies like direct-to-patient
approaches and B2B eCommerce platforms.

The following were identified as the key focus areas to bolster the Indian pharmaceutical and
healthcare sectors:

 Advancement of manufacturing technologies with a specific focus on automation and

digitization
 Building credibility in the global market with an unwavering commitment to quality
 Adopting sustainable practices
Growing Indian API industry: How will it define the Indian
Pharmaceutical Industry in the Future?

More than 500 different APIs are manufactured in India. The API market was valued at US$12.59 billion
in 2022 and is expected to reach US$18.76 billion by 2028, growing at a CAGR of 8,31 percent from 2022
to 2028.

Despite the abovementioned advantages, almost 70 percent of APIs are currently imported from China.
However, due to the worldwide lockdown, imports from China have been impacted, resulting in a
shortfall in domestic companies' production of generic medicines.

The cost advantages of the Chinese API industry and the volatility in the prices of the APIs have kept
domestic production of certain APIs unviable for Indian manufacturers, resulting in the continuing
dependence on China.

Around 50 percent of the critical APIs are imported from China. Even where the APIs are manufactured
locally, the essential materials of starting (KSMs) are still heavily sourced from China.

In July 2020, the Government of India also announced Rs 6,940 crore of Production Linked Incentive (PLI
scheme as it is widely known in the industry) to encourage domestic API manufacturers and reduce
imports from China.

Competitive Advantages of the Indian API Industry:

 The country has a robust API domestic market, with many Indian companies having multiple
advantages over Western competitors regarding patented medicines, strong supply chains, and
production efficiency.
 India is on par with Western nations regarding process efficiency and technological capabilities.
 An evolved chemical industry and skilled workforce coupled with stringent quality and
manufacturing standards are an added advantage.
 India offers cost competitiveness in manufacturing (about 40 percent less than that in the West
for setting up and operating a modern plant) and labor as compared to China.
Key players and their strategies
The prominent players in the API market in India include Divi’s Laboratories Limited), Teva
Pharmaceutical Industries Ltd, Mylan India, ISAI Pharma (India), Pharmazell, Cipla), Zydus Cadila, Dr.
Reddy’s Laboratories Ltd Micro Labs, Lupin, OLON India, Sun Pharmaceutical Industries Ltd. Aurobindo
Pharma, Hetero Drugs, Laurus Labs, IPCA Labs, Solara, Aarti Drugs, Granules, MSN Laboratories.

These market players have adopted strategies such as agreements, collaborations, product launches,
technology advancements, partnerships, acquisitions, and expansions to expand their global presence
and increase their shares in the API market.

Future ahead
 In 2023, India’s pharmaceutical business underwent a tremendous transformation, moving from
being a volume producer to a valued supplier.
 Post-Covid-19, the Indian pharma sector has gained momentum as a key player in the global
market.
 India will double its API market in the next three years. Cutting-edge research and development
in producing generic APIs would be possible with the proper regulatory support through PLI
schemes and other incentives—combined with trained, high-skilled individuals.
 With the ongoing efforts, India is well-positioned to become a global leader in the
pharmaceutical API industry.
 (Source: From M&A sections of various annual reports of top Pharma companies)