Arjun Juneja, Chief Operating Officer, Mankind Pharma LtdRecent advances in Generative artificial intelligence (GenAI) and AI-enabled analytics have seen the pharmaceutical industry adopt these technologies at an accelerated pace over the past two years. These technologies provide enormous opportunities for pharmaceutical companies to accelerate innovation, improve productivity, improve consumer experience and drive business impact. According to McKinseyadvanced analytics could improve pharmaceutical earnings before interest, taxes, depreciation and amortization (EBITDA) by 45% to 75% over the next decade.
Potential value creation extends across the entire pharmaceutical value chain. In research and early development, advanced analytics and AI are already being used to deepen understanding, better select lead candidate molecules, and optimize dose selection and clinical trial endpoints. These predictive modeling applications could increase the overall probability of portfolio success for new medical assets by 10-20%.
AI and analytical models allow researchers to streamline trial site selection and better predict patient enrollment rates. AI-based tools in trials can speed up patient selection by 15%, reduce trial costs by 10-15%, and increase ultimate success rates by up to 10% in some cases.
On the manufacturing and supply chain side, advanced analytics supports improving purchasing efficiency, optimizing production facility yield, and supply chain planning. Across sales and healthcare functions, analytics and AI can significantly improve field force targeting and personalization of customer engagement to drive net revenue gains of 5-10%. Advanced analytics also supports better ongoing safety monitoring and post-market evidence development, enabling a more nuanced understanding of real-world therapeutic outcomes.
Despite this wide range of applications, most pharmaceutical companies have only scratched the surface when it comes to growing analytics and AI initiatives within their organization. To fully realize the potential value at stake, pharmaceutical companies must adopt modern, product-driven operating models focused on business outcomes.
The primary way to achieve this is through cross-functional, empowered teams responsible for driving progress toward overarching goals centered around the patient experience. Implementing Data Operations practices and tools are also essential for increasing access to high-quality, integrated data across the organization. Common standards and automated processes enable the development and deployment of advanced analytics at scale.
Additionally, pharmaceutical companies need to industrialize AI by leveraging machine learning operations (MLOps) principles and systems. Rather than one-off analyses, MLOps enables reliable, compliant models to be created on a production line and seamlessly integrated into workflows and business processes on an ongoing basis. Proactive talent strategies, focused specifically on hiring and retaining scarce digital, analytics and AI professionals, are also essential. Creative approaches to sourcing talent, such as acquiring small AI startups, can give companies a competitive advantage.
Clarifying digital health strategies is another imperative, including how solutions fit into portfolios and business models to scale externally developed solutions. As scientific innovations increase the complexity of therapies, digital tools such as apps and sensing tools will be increasingly critical to driving patient adherence and engagement. Companies that develop world-class capabilities in the design and implementation of digital health solutions will have advantages in providing market-leading patient support services.
The potential impact of advanced analytics and AI on the pharmaceutical industry is profound. These technologies can catalyze disruptive innovations across the value chain, accelerating the development of new therapies, enabling more personalized and effective treatments, and optimizing business models.
Delivering on all promises will require comprehensive changes to the operating model and substantial new capabilities. Companies that lead this transformation will benefit from enormous competitive advantages. Their offerings could reshape patient care globally by providing precisely targeted, highly adaptable solutions that continually improve over time.
The future for these pioneers is one of rapid growth, increased agility and, above all, the ability to deliver unprecedented therapeutic value to patients who need it most. Through the power of data and analytics, pharmaceutical leaders can usher in a new era defined by life-changing scientific advancements. The calls to action are clear and now is the time to make this vision a reality.
The author is Arjun JunejaChief Operating Officer, Mankind Pharma Ltd.
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