Innovation the way forward for Pharma industry

"Innovation drives consumer growth, and healthcare is where innovation is going to be critical for the next 10 years"

In the wake of the financial crisis, innovation is proving a lifesaver for the pharma and pharma manufacturing industries.

"Innovation drives consumer growth, and healthcare is where innovation is going to be critical for the next 10 years"

There’s no denying the fact that the pharmaceutical world is in flux, if not downright turmoil. With each passing year, the pressure builds for pharma companies to go leaner across the value chain, to streamline drug discovery and execute a more time efficient drug development.

Not surprisingly, the old phama blockbuster model has fallen by the wayside and even the big industry players are increasingly seeking a cure, with some gobbling up their rivals in an attempt to boost flagging pipelines.

So it’s no surprise then that the word most frequently on the lips of Novartis’ new CEO, Jim Jimenez, is ‘innovation’.

“Innovation drives consumer growth, and healthcare is where innovation is going to be critical for the next 10 years,” says Jimenez. “This is an industry that has fundamentals that are going to lead to increased demand for healthcare. If you look at the ageing population and chronic illness increasing around the world – even in the emerging markets – there’s going to be increased demand that will require innovation to deliver on those needs.”

The key to robust and world-leading innovation is an ongoing commitment to R&D, he says.

“Investing heavily in R&D allows you to find the right scientists to ensure that your pipeline is strong. The more we can deliver medicines that provide more than just a small incremental benefit, but really deliver on unmet medical need and allow us to protect those with intellectual property, the better is our defence against generics.”

Another critical issue currently on the pharma radar is downward pricing pressures and a change to the customer base. “If you look at the debt crisis, governments in Europe have recently initiated significant price reductions on pharmaceuticals because they are debt strapped. They’re looking for ways to lower the total healthcare burden. I believe that the ‘old days’ of pharmaceuticals, where virtually everything was automatically reimbursed, are gone and we now have to have a different attitude to pricing.”

For Novartis, that means taking more of an outcomes-based approach: “We need to help governments and payers around the world to pay for those drugs and new medicines that are going to deliver on unmet medical needs. Right now, we’ve entered into a number of agreements with payers that are what we describe as ‘innovative pricing mechanisms’, where the payer is starting to pay on the positive outcome as opposed to the paying on the transaction of purchasing just the pill. I do believe that’s where trends are going to move over the next 10 to 20 years, so we’re trying to get ahead of it.”

It’s an issue that will be top of the agenda for the industry’s leading players at the Next Generation Pharmaceutical Manufacturing Summit 2011 in Vienna from 7-9 June 2011. Sponsored by GDS International and featuring more than 50 of Europe’s most respected pharma executives, the delegation will turn the spotlight onto topics such as trends shaping the future of pharma and pharma manufacturing, brand protection and anti-counterfeiting, packaging trends and the best way to streamline the value chain.

Addressing the issues will be some of the industry’s most notable figures, including Marc Jones, VP Global External Sourcing, AstraZeneca; Steve Dreamer, Head Global Pharma Engineering & Innovation Quality Production, Novartis; Simon Orchard, VP Biotech and CEO Healthcare, Pfizer, and Ingo Ebeling, Head of Technology and Product Service, Abbott Laboratories.

Next Generation Pharmaceutical Manufacturing Summit 2011 is an exclusive C-level event reserved for 100 participants that includes expert workshops, facilitated roundtables, peer-to-peer networks and co-ordinated meetings

For more information, visit www.ngpsummit.eu.com