Pharma Companies to Explore Analytics Amidst Increasing Price Pressure
Amidst increasing price pressures and an intense regulatory gaze, pharmaceutical companies are planning to spend on data analytics and digital tools to sharpen their marketing focus and improve compliance.
This step comes with the price competitiveness in key markets and regulatory actions causing adverse audit observations and warning letters.
“Businesses that digitalize will have a huge competitive advantage over others. At Cipla, we are leveraging new-age technologies to drive efficiencies,” said Kedar Upadhye, Cipla’s global chief financial officer.
The drugmaker has brought manufacturing-execution systems to offer real-time feedback, automate material flows, capture cost information, and drive a paperless workflow, so that waste and scrap can be reduced.
“This was piloted this year at our Patalganga plant and we hope to roll out in other facilities. Our fully digitized Business to Business(B2B) supplier network system was implemented this year. The tool has been used to procure direct and indirect materials worth ~260 crore,” Upadhye said.
Digital and data analytics are also going to bring other benefits too. PwC partner Sujay Shetty says, “With the help of data analytics, drugmakers can improve distribution, increase sales force productivity, and effectively manage working capital.” For companies, cost optimization is important since growth is under pressure due to price erosion. Domestic sales growth slowed to 7 per cent year-on-year in May, the slowest in the last 17 months. In June, domestic market growth was 6.6 per cent.