IIR Webinar: Pharma-Biotech Sector Strives to Keep up With Trends, Maximize Profits

The old adage "the more things change, the more they stay the same," is perhaps more applicable to the Pharmaceutical-Biotech Industry than it is to many others. The industry consistently responds to new demand for drug therapies and medical devices, often planning large projects that can exist in a state of flux until they break ground--and even then, may be subject to serious changes or cancellation. In a recent webinar, Annette Kreuger, Industrial Info's vice president of research for the Pharma-Biotech Industry, discussed the changes and developments of the industry throughout the world.

What are some of the larger trends in the Pharma-Biotech Industry? As always, companies are focused on the drugs that will bring in the most money. Patent expirations for drugs often hurt a company's bottom line, and drug developers are working to keep the pipeline filled with new, profitable products as their patents expire and biosimilars (highly similar products to an existing biologic medicine) are developed that compete with the market share of an original drug.

Other trends, such as growing automation at plants, take aim at both profit and efficiency. Drug and biologics manufacturers learned during the COVID-19 pandemic that they could increasingly automate their plants, reducing both human error and long-term capital outlays. In a similar vein, artificial intelligence and machine learning are becoming a big part of drug development. "Smart factories" are becoming the norm for many new bio plants, underscoring the importance of a strong digitation platform.

Cutting-edge trends such as personalized medicine, which includes genetics and immunotherapies, are gaining ground, as these can be huge moneymakers. While the sectors for traditional over-the-counter (OTC) and prescription drugs are less dynamic, they still attract plenty of spending as aging populations and an increased focus on wellness drive demand for these products.

Regarding pharma projects under construction, the U.S. leads the world with $76 billion worth underway, followed by China with $35 billion and Western Europe with $21 billion. Of the projects that are planned to kick off over the next two years, new plants (grassroot and brownfield) lead the world with $60 billion in planned spending, followed by plant expansions at $58 billion. Drug and medical device manufacturers increasingly are building plants with a view toward expansion, rather than outlaying additional capital for a new plant built to spec.

But it's not just about profits. In the West, pharma-biotech companies are focusing more on environmental, social and governance (ESG) initiatives, which are more often included as part of a new project plan. In the U.S., an element of this has been underway for years in the form of Leadership in Energy and Environmental Design (LEED) guidelines that ensure that facilities are constructed with a multitude of "green" features. The Pharma-Biotech Industry has been one of the largest developers of LEED-certified facilities for many years.

Kreuger discussed these subjects and others in her presentation, including biologics, traditional pharmaceuticals and OTC drugs, and active pharmaceutical ingredients (APIs).

Finally, the presentation took a deeper dive into the activity in North America, Europe and Asia, highlighting some of the largest projects in these regions.

If you missed the presentation or would like to listen to it again, it soon will be available in Industrial Info's On-Demand Webinar Library.

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