The Indian pharmaceutical and life sciences sector is undergoing a transformative shift, driven by the integration of artificial intelligence (AI), automation, and advanced analytics. This evolution is not just about technology; it represents a paradigm change in how research and development (R&D) processes are conducted, significantly enhancing efficiency and reducing costs.
Key Findings of the KPMG and UnearthIQ Report
A recent report by KPMG in India and UnearthIQ highlights the measurable advancements made by Global Capability Centres (GCCs) in the country. The study reveals that the traditional drug development cycle, which typically spans 10 to 15 years, has been compressed to a range of 9 to 13 years. Additionally, the costs associated with R&D have decreased from 20 to 30 percent to a more manageable 15 to 25 percent, as automation allows research teams to focus on more complex tasks rather than routine operations.
Accelerating Drug Development Timelines
The report emphasizes that GCCs are making significant strides in various phases of drug development. In areas such as target identification, protein modeling, and compound screening, the use of AI has expedited early-stage timelines by approximately 5 to 6 years. Moreover, clinical trials have also benefited from AI applications in patient recruitment, trial design, and real-time analytics, resulting in a reduction of development cycles by 4 to 6 years while simultaneously improving success rates.
The Future of GCCs in India
Shalini Pillay, a partner at KPMG in India, points out that the next phase in the evolution of GCCs will rely heavily on integrating deeper business insights and domain expertise. By leveraging emerging technologies and generative AI, these centres can tackle core challenges within the sector, leading to enhanced returns on investment. This trend is evident as GCCs increasingly invest in data integration and technology alignment throughout the value chain.
A Thriving Ecosystem of Healthcare GCCs
India is home to over 150 healthcare and life sciences GCCs, which include R&D centres, Global Business Services, and Centres of Excellence. Collectively, they employ more than 300,000 professionals. The landscape remains predominantly driven by pharmaceutical centres, which account for 30 to 35 percent, followed closely by life sciences and medical devices.
Innovation at the Core
The GCC landscape is shifting towards a more innovation-driven focus, particularly within healthcare and MedTech. Traditional engineering roles are giving way to mandates centered on product development and innovation. By incorporating AI platforms, digital engineering, and regulatory automation, medical device GCCs are reducing development cycles from 5 to 8 years down to 3 to 5 years. This shift has also resulted in improved software-led margin leverage, which has increased from 10 to 15 percent to 18 to 25 percent.
Embracing a Core-First Approach
According to the co-founders of UnearthIQ, Gaurav Vasu and Shail Maniar, the Indian healthcare and life sciences GCC ecosystem is advancing beyond conventional maturity models. Organizations are adopting a “core-first” strategy, focusing on building capabilities in areas such as discovery, clinical development, and digital health. This approach is vital for reinforcing their roles in global innovation efforts.
Collaborative Ecosystem Dynamics
Kartik Ramakrishnan, a partner at KPMG in India, highlights the importance of collaboration within the broader ecosystem. Enterprises, technology partners, startups, academia, and government initiatives are all playing integral roles in fostering specialized expertise and innovation. The emphasis on collaboration and knowledge-sharing distinguishes India’s GCC landscape, promoting a culture of continuous improvement.
Visible Impact on the Healthcare Value Chain
The report concludes that as GCCs take on more comprehensive responsibilities across the healthcare value chain, their impact becomes increasingly apparent. Faster access to therapies, improved clinical trial outcomes, and reduced development costs are now observable benefits of this transformation.
Key Takeaways
- AI and automation are pivotal in reducing drug development timelines and costs in India’s pharmaceutical sector.
- GCCs are enhancing their operational efficiency by focusing on innovation and automation across all phases of R&D.
-
The ecosystem thrives on collaboration, integrating contributions from various stakeholders, including technology partners and academic institutions.
-
A core-first approach is enabling GCCs to strengthen their roles in global healthcare innovation.
In conclusion, the adoption of AI and advanced technologies is revolutionizing India’s pharmaceutical landscape. This evolution promises not only faster and cost-effective drug development but also a more dynamic and innovative approach to healthcare solutions. The future of India’s pharma sector is poised for robust growth, characterized by enhanced collaboration and continual advancements in technology.
Read more → www.businessworld.in