Market shares are increased and more innovative, safe and exceptional products are produced within any business as the result of competition. In the biotech industry, many businesses will compete against one another to create better or newer drugs.
As part of the pharma industry, biotech suffers from having business processes and manufacturing techniques that are behind other industries.
Strategies can be improved
There are ways in which the industry can improve its manufacturing technology innovations and change the way in which business practices are carried out. The pharma industry has the potential to grow its patient base by approximately 1.5 to two billion, while lowering the costs of global health care, and it can do this while improving its profits and revenue.
Marketing is currently put in place as quickly as possible when a new molecule is created by a company, with the company hoping to overtake its competitors with a greater market share. This works well; however, due to pricing policies, it often comes unstuck. Patients may not be able to afford their dosage or the drugs, even in countries with healthcare programmes, and those without a healthcare programme may be forced to decide between drugs and food.
Poor process yields, low inventory turnovers, poor asset utilisation, poor product quality and shortages have all been witnessed in the past few years. With inherent differences in people, curing diseases may require different doses or molecules. This adds to the risk of inefficiency in operations and the complexity of a business.
Driven by regulations
Regulations drive the industry, as do profits, and it is these that can have a huge impact on how creative and innovative a business can be in its business practices and manufacturing; therefore, external sources should be considered to provide this innovation.
This could come from a variety of different areas; for example, scientific staffing solutions can be obtained from companies such as G and l scientific. Perhaps the changes that need to happen will come from pharmacy benefit managers or astute business people.
Alternatively, major buyers could potentially enforce the changes required by pushing companies to use the best supply chain practices and manufacturing technologies available. This would result in lower-cost drugs; in turn, this would lower the costs of healthcare while improving drug accessibility and company profits.