“There have been several speculations about the stationary growth of the pharmaceutical industry, but recent technological advancements are expected to encourage the growth of this industry in the years to come.”
The recent population shift to urban areas and increasing accessibility of people to healthcare services has opened the doors for companies in the pharmaceutical industry to a broader target market. These emerging markets are becoming extremely important for pharma companies. However, for companies in the pharmaceutical industry, it becomes very essential to shift from a sales and marketing-focused model to an access-driven commercial model. Additionally, with healthcare becoming a priority for governments in several countries, the pharmaceutical industry seems to have a bright future. But on the flip side, there are several factors like consumer attitudes, drug availability, affordability, policies of governments, which might not entirely be in the favor of pharma companies and are challenging the growth of the pharmaceutical industry. In this article, we have talked about several critical challenges of pharmaceutical industry and have highlighted steps that will help companies to combat each of those challenges.
Top challenges of pharmaceutical industry
Challenge 1: Demand Forecasting
One of the biggest challenges companies in the pharmaceutical industry face is to devise reliable market forecasts and enhance the customer service levels, which is due to inefficient demand forecasting. Demand forecasting is an essential component for the pharma companies to stay ahead in the competition and match the supply to demand. Additionally, ensuring that all the goods are produced at the desired time and delivered seamlessly poses a big challenge to the pharma companies. The inconsistency and errors in the supply process is a significant hurdle that companies in the pharmaceutical industry are facing.
Quantzig’s solution: Predictive analytics solution to help in better demand forecasting
With expertise in offering effective predictive analytics solutions, Quantzig specializes in transforming the demand forecasting process and making it more efficient. By leveraging proprietary predictive analytics techniques and combining the internal and external data available, including consumer data, pricing data, stock exchange data, and others, Quantzig promises to cater to this challenge effectively.
Challenge 2: Price Fluctuation Assessment
A recent analysis of the pharmaceutical industry shows that many big players in the industry are poised to witness tough times due to digitization, which is changing the market landscape constantly along with the trends in the pharmaceutical industry. This has escalated the need for proper techniques to analyze pricing structures because pricing is the key to boost profitability. Analyzing shifting customer interests and fluctuating prices is one of the very big hurdles faced by companies operating in the pharmaceutical industry today.
Quantzig’s solution: Pricing analytics solution to assess the pricing strategy effectively
Quantzig’s pricing analytics solution can help gain real-time insights into the pricing scenario and make proactive decisions. Furthermore, our pricing analytics solutions can help firms to estimate the impact of pricing on the volume of sales. With the help of pricing analytics, companies can gain a clear and precise understanding of the customer base and their expectations on pricing. Quantzig offers pricing analytics solutions that can help companies in the pharmaceutical industry to identify new opportunities for revenue generation.
We have helped our healthcare clients address these challenges through smart analytics solutions. Request a demo to experience the meaningful insights we derive from data through our analytical tools and platform capabilities. Schedule a demo today!
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Challenge 3: Patient Journey Analysis
Today, customers’ preference for cost-effective products is a serious cause of concern for companies in the pharmaceutical industry. Therefore, it becomes important for the pharmaceutical industry players to ensure that new therapies are economically as well as clinically better than the alternatives. Besides, the increasing number of health issues is pushing the pharmaceutical industry players to provide promising solutions with the best quality. Thus, conducting an analysis of the patient’s journey, understanding the payer, provider, and perspectives of the patient becomes very crucial and challenging to fully understand the treatment drivers, barriers, and disease flow.
Quantzig’s solution: Real world analytics solution to properly analyze patient journey
Quantzig provides real-world analytics services that enable pharma companies to formulate better engagement strategies for both physicians and patients. Furthermore, Quantzig’s multi-stakeholder and dimensional patient journey analysis approach helps companies in the pharmaceutical industry to discover and quantify the key transition points along the continuum of care for patients. Also, it provides comprehensive insights on patient adherence, efficacy, treatment pathways, disease progression, and drug safety.
Quantzig’s analytics solutions can help pharma companies drive sales and profit margins using data. Experience the advantages firsthand by testing a customized complimentary pilot designed to address your specific requirements. Pilot studies are non-committal in nature.
Request a Free PilotChallenge 4: Risk Management
Managing risks in the manufacturing process and quality systems is of prime importance in the pharmaceutical industry. Every product and process are associated with risks. So, for pharma companies, it becomes very important to maintain product quality throughout the product’s life cycle. Hence, it becomes challenging for companies in the pharmaceutical industry to identify the possible risks associated with a product or the processes used to manufacture, develop, and distribute the product.
Quantzig’s solution: Big data analytics solution to devise robust risk management strategies
With Quantzig’s big data analytics solutions, companies in the pharmaceutical industry can improve their ability to monitor and measure whether medications are being used as prescribed. Also, they can analyze the number of drugs manufactured against market demand data and supply data. Pharmaceutical industry firms can make use of big data analytics to enhance customer experience, innovate products, and devise robust risk management strategies to aid them in making better business decisions and improving their market position. Pharma companies can also leverage big data analytics to improve margins as the volume increases and decreases inventory write-downs.
Challenge 5: Inventory Management
Factors like rising customer expectations, policy reforms, and slowdowns in the biosimilars market are posing a threat to pharma companies. For companies in the pharmaceutical industry, keeping track of their inventory, meeting constantly changing regulations, providing promising solutions with the utmost quality, and balancing risks associated with inventory shortages and gluts is very challenging.
Quantzig’s solution: Inventory analytics solution to optimize inventory efficiently
Quantzig’s inventory analytics solution helps pharma companies to identify items that are trending toward being out of stock. Also, companies can use inventory analytics to ensure efficient item distribution, flag obsolete items, and identify critical spare parts. This helps in managing the supply chain efficiently and establishing a loyal relationship with customers.
The Impact of challenges of pharmaceutical industry:
Challenges for pharmaceutical industry have far-reaching impacts, affecting not only the industry itself but also global healthcare systems and patients. Here are five significant impacts:
1. Delayed Drug Development:
Regulatory hurdles, clinical trials complexities, and stringent safety requirements often lead to delayed drug development. This delays the availability of new and potentially life-saving treatments for patients, impacting healthcare outcomes and costs.
2. Escalating Costs:
The high cost of research and development, coupled with stringent regulatory requirements, drives up the price of pharmaceuticals. This results in expensive medications and reduced accessibility, which can burden healthcare systems and limit patient access to essential treatments.
3. Intellectual Property and Generic Competition:
The pharmaceutical industry heavily relies on patents, which provide a limited period of exclusivity. Generic competition following patent expiration can significantly impact the sales and revenue of pharmaceutical companies.
4. Public Health Impact:
Challenges like counterfeit drugs, drug shortages, and inadequate access to medications can have dire public health consequences. Patients may receive substandard or counterfeit drugs, while shortages can lead to compromised care and even fatalities.
5. Global Health Equity:
Disparities in drug availability and affordability impact global health equity. Lower-income populations may struggle to access life-saving medications, exacerbating healthcare disparities.
Overcoming Challenges in the Pharmaceutical Industry
The pharmaceutical industry, a cornerstone of global healthcare, constantly grapples with multifaceted challenges ranging from demand forecasting to risk management. These challenges not only affect the industry’s profitability but also its ability to serve patients effectively. Here, we delve into the pivotal challenges facing the pharma sector and elucidate strategies to navigate them.
1. Demand Forecasting:
Forecasting demand remains a Herculean task for pharma companies, primarily due to the volatility and intricacies of market dynamics. A lapse in accurate forecasting can lead to supply-demand mismatches, potentially causing stockouts or overstock situations. Leveraging predictive analytics, such as Quantzig’s technology solution, can be transformative. By amalgamating vast datasets encompassing consumer behavior, market trends, and pricing dynamics, companies can achieve granular insights. Such insights empower firms to optimize production, streamline inventory, and bolster customer service levels.
2. Price Fluctuation Assessment:
In an era of rapid digitization, pharmaceutical companies confront the challenge of pricing volatility. Fluctuating prices, influenced by myriad factors like technological advancements and regulatory changes, can erode profit margins. To navigate this, pricing analytics emerges as a beacon. By harnessing real-time insights, firms can craft dynamic pricing strategies that resonate with evolving customer preferences, ensuring sustainability and profitability in a dynamic market landscape.
3. Patient Journey Analysis:
Understanding the patient journey is paramount for pharmaceutical companies aiming to deliver value-driven solutions. As patients increasingly prioritize cost-effectiveness and quality, pharmaceutical firms must decipher the intricate layers of patient-provider interactions, treatment pathways, and disease progression. Real-world analytics solutions, like those offered by Quantzig, facilitate this understanding. By mapping the patient journey comprehensively, firms can refine engagement strategies, optimize treatment protocols, and foster patient-centric innovations.
4. Risk Management:
Risk permeates every facet of pharmaceutical operations, from drug development to distribution. Given the criticality of product quality control and safety, managing risks proactively is non-negotiable. Big data analytics emerges as a potent ally in this endeavor. By scrutinizing vast datasets, firms can preemptively identify potential risks, optimize manufacturing processes, and ensure regulatory compliance. Moreover, leveraging analytics enhances post-market surveillance, fostering a proactive approach to risk mitigation and bolstering patient trust.
5. Inventory Management:
Inventory management stands at the crossroads of customer satisfaction and operational efficiency for pharmaceutical companies. Amidst evolving customer expectations and regulatory landscapes, maintaining optimal inventory levels is paramount. By integrating advanced inventory management systems with predictive analytics, firms can achieve real-time visibility into supply chains, optimize stock levels, and mitigate risks associated with inventory imbalances.
Combating these pharma industry challenges without expert assistance and in-depth insights is an uphill task. Get started with your complimentary trial today and delve into our platform without any obligations. Explore our wide range of customized, consumption driven analytical solutions services built across the analytical maturity levels.
Start your Free Trial NowIn conclusion, pharmaceutical industry problems ripple throughout healthcare systems, affecting drug development, costs, accessibility, intellectual property, public health, and global health equity. Addressing these pharmaceutical industry challenges is crucial to ensuring accessible, affordable, and safe pharmaceuticals for all.
The pharmaceutical industry’s landscape is replete with challenges, but with proactive strategies and advanced analytics solutions, firms can navigate these hurdles adeptly. By prioritizing data-driven decision-making, fostering innovation, and embracing transformative technologies, the pharmaceutical sector can not only overcome existing challenges but also pioneer advancements that redefine global healthcare paradigms. As the industry continues to evolve, agility, innovation, and a patient-centric approach will remain paramount, ensuring sustainable growth, enhanced patient outcomes, and enduring industry relevance.
