European companies must be alert to a number of specific risks that are unique to the pharma industry. Here we will look at seven deadly risks of the European pharmaceutical industry.
Drug companies are constantly grappling with new pharmaceutical risks and policies to mitigate them. Those that are quick to identify them and develop policies/procedures to mitigate them can reduce their exposure in an ever-changing landscape.
Pharmaceutical industry trends reshaping the future, we characterize these as the 7 deadly risks of pharma.
Effects of Brexit
The departure of Britain from the EU came as a shock to the pharmaceutical industry, which had voiced deep concerns about Brexit before the referendum.
The full impact of the decision to leave the European Union has yet to be determined, but there are concerns that it may jeopardize European funding for UK-based research projects.
Industry leaders are concerned about the potential implications of restrictions on the movement of workers from Europe and the lower value of the pound against the euro and US dollar.
Health care spending has declined
Europe has struggled to recover from the economic crisis of 2008 and continues to face economic uncertainty, especially in the EU’s poor member states. Analysts predict that austerity and government debt will restrain public healthcare spending in Europe to just 2.5% a year over the next two years, which is bad news for pharmaceutical companies across Europe.
Stronger economies like Britain, Germany, and Sweden will show a more robust recovery in healthcare spending over this period, but there will be restraints on growth and increased competition among providers.
Regulatory shifts may happen rapidly.
The pharmaceutical industry is overseen by a robust and complex regulatory system. This, in turn, has led to patient protection is at the heart of this complex regulatory system. However, approaches how to handling patient protection can vary widely from market to market.
Additionally, the industry also has had to contend with an ever-changing landscape, increased scrutiny, more sophisticated risk-monitoring technique, and improved coordination between agencies & regions.
Sector has been likened to the financial service industries of 10.5 years ago when authorities started to crack down in many areas such as product safety and security issues while also having to contend with intellectual property disputes.
Risk in supply chain management
Supply chain disruptions are a growing concern for European pharma as it relies on emerging markets where compliance, ethics, and health and safety standards can be lower than in Europe. The result is supply chain failure, loss of profits, cost of mitigating incidents and reputational damage.
Poor communication usually underlies problems with supply chains and companies are unaware of their suppliers and are susceptible to a range of risks.
Talent and knowledge deficiency
Pharmaceutical companies and universities have always lost their top scientists to the US. However, many feel there is more to a current shortage of talent than that longstanding brain drain. Industry analysts believe that poor recruitment strategies and planning weaknesses are behind the very shortage.
Businesses that show interest in developing talent pipelines, target professionals early in their careers and lifes and often find its difficult to build a strong financial case for implementing their strategies. They approach a wait-and-see approach before implementing any bold training or recruiting programs with Brexit muddying the waters with the whole industry.
Cybersecurity for Pharmaceutical Industry
this is pharma hot topic and offers more effective and efficient personalized healthcare to patients and careers.
this is all about the use of emerging technology to offer greater potential for better self-care, a more proactive health management system and faster recovery from diseases. In more hospitals, digitization will decrease error rates, offer faster recuperation and support skilled clinicians in treating patients collaboratively across borders.
But it brings with it an increased risk of cybersecurity breaches.
The most robust way of approach to address cyber security risks is to identify who is targeting the organizations, and then assess the potential impacts and put controls in place. This way of approach allows operators and managers to balance disturbance against cyber risks while, at the same time, providing safety assurances.
increase in prices of medicine and their impact on the sustainability of healthcare system are garnering more. European’ regulators are willing to play their part in safeguards access to safe and effective medicines. Regulators can speed up the approval of generic drugs and biosimilars to boost competition and drive down prices. They can work to ensure a steady rate of new products coming on the market, which will also help drive down prices through increased competition.
Regulators can also promote research and development in areas that could lead to price reductions. This means reflecting on new approaches to medicine development, such as the adaptive pathways approach being explored by the EMA (European Medicines Agency). These is scientific concepts for medicine development and data generation that allows early and progressive patient access to medicine. The approach makes use of the existing regulatory framework for medicines.
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Vijay comes with a vast experience in ERP and enterprise solutions space with about 20 years of experience in various packaged application like Acumatica, SAP, Orion, Salesforce.com, SugarCRM and, SalesLogix.