Adoption of New Technologies: A CDMOs Perspective
Girish Basavaraju, PhD
Country Head | Building Cosette Pharmaceuticals in India
#cro #cdmo #pharmaceuticalindustry #digitaltransformation #ai #flowchemistry #datanalytics #lifesciencesindustry #automation #industry4point0
Technological breakthroughs are altering the landscape and moving the pharmaceutical sector toward unprecedented possibilities in the dynamic domains of Contract Research Organizations (CRO) and Contract Development and Manufacturing Organizations (CDMO). These developing technologies are having a long-term impact on everything from drug research to manufacturing operations. Let's look at some of the innovative technologies that are changing the way CROs and CDMOs operate.
There have been several technologies which are becoming buzz words and catching attention. Out of many, the following are becoming extremely necessity in driving the industry forward. But they come with hefty price tag and their own challenges. Let us look at each of them one by one.
The market for Artificial Intelligence (AI) and Machine Learning (ML) in the pharmaceutical sector is poised for substantial growth. Predicted to be worth USD 1,560 million in 2022 and is estimated to surpass around USD 6,700 million by 2030, registering a healthy CAGR of 20% from 2022 to 2030 by Precedence Research. The ability of AI algorithms to analyze vast datasets for predictive modeling is reducing the time and resources required for identifying potential drug candidates. As the technology matures and its applications expand, the AI market's size within the CRO and CDMO sector is expected to rise.
The global market for laboratory automation and robotics is witnessing a steady surge, with a considerable share of this growth attributed to their adoption in the pharmaceutical industry. Based on the market research from The Insight Partners, a CAGR of 14.4% during 2023–2033, it is projected to reach USD 78.97 billion by 2033 from USD 18.64 billion in 2022. As CROs and CDMOs integrate automation and robotics into their workflows, they are benefiting from increased accuracy, reduced human error, and enhanced throughput. The industrial robotics market size was nearly $27.11 billion in 2022 and is set to increase to about $60.57 billion by 2030 along with securing the highest CAGR of 10.7% from 2023 to 2030. The market's growth is driven by the need for precise and efficient processes in drug discovery, development, and manufacturing, positioning automation and robotics as critical components of the industry's future.
The Data Analytics and Informatics market is gaining momentum as CROs and CDMOs grapple with the exponential growth of data generated during research and manufacturing activities. This market's expansion is driven by the increasing demand for tools and platforms that can derive meaningful insights from complex datasets. The ability to make data-driven decisions and optimize processes is positioning data analytics as an integral part of the CRO and CDMO ecosystem. The global life science analytics market size was valued at USD 9.34 billion in 2022 and it is expected to hit over USD 24.12 billion by 2032, poised to grow at a CAGR of 8.63% from 2023 to 2032. U.S. life science analytics market was valued at USD 4.1 billion in 2022 from a market research report from Precedence research.
The adoption of Continuous Manufacturing is reshaping the traditional pharmaceutical manufacturing landscape. This disruptive technology's market growth is underpinned by its potential to reduce production times, enhance quality control, and optimize resource utilization. The Global Pharmaceutical Continuous Manufacturing Market was valued at US$ 404.8 Million in 2018 and is expected to reach US$ 940.3 Million by 2027 growing at a Compounded Annual Growth Rate (CAGR) of 9.82% during the forecast period from the Mordor Intelligence. As pharmaceutical companies recognize the benefits of continuous processes, the market size for this technology is projected to increase, transforming how drugs are produced and manufactured.
The personalized medicine market, driven by advancements in genomics and biomarker research, is carving out a significant niche within the pharmaceutical industry. Already more than 25 precision medicines were approved, and 40% development is taking place in this area. Herceptin®(trastuzumab), Gleevec® (imatinib mesylate) and Zelboraf® (vemurafenib) are few examples. As precision medicine gains traction, CROs and CDMOs are witnessing an increased demand for tailored treatments and therapies. The integration of biomarkers into clinical trials and treatment decisions is expanding the market size of personalized medicine, with potential benefits for patients and stakeholders alike. The only challenge with this is to have small scale production facility, with advanced technologies to bring down the turn-around time.
While the markets for Blockchain, Gene Editing Technologies, and Nanotechnology are still evolving in the pharmaceutical sector, their potential impact is not to be underestimated. The adoption of blockchain for enhanced data security and traceability is likely to grow, contributing to the overall integrity of the pharmaceutical supply chain. The global blockchain in healthcare market size stood at $304.04 million in 2021, and it is expected to grow at a CAGR of 48.90% during 2021–2030, to reach $10,939 million by 2030 from P&S Intelligence. The markets for gene editing and nanotechnology hold immense promise but are still in the early stages of development, with the potential to reshape drug discovery, development, and delivery in the years to come.
The adoption of these technologies in the fields of CRO and CDMO comes with its own set of challenges. While these technologies hold immense promise, addressing these challenges is crucial for their successful integration and widespread use.
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Evaluating a Brand-New Technology in the Market:
When considering a brand-new technology entering the market, thorough evaluation is paramount to ensure its alignment with your business objectives and industry trends. Begin by assessing the technology's novelty and potential advantages over existing solutions. Scrutinize its applicability to your specific needs and determine whether it can address any critical challenges your business faces. Investigate the technology's track record, if available, through case studies or pilot projects. Engage with industry experts, attend conferences, and gather insights to gauge its potential impact. Analyze the technology's scalability, compatibility with your existing infrastructure, and potential for integration into workflows. Assess the vendor's reputation, customer support, and reliability, as these factors will impact your long-term experience. Consider the technology's return on investment, factoring in implementation costs, training, and potential gains. Ultimately, a well-informed decision hinges on a comprehensive evaluation that balances innovation with practicality.
Evaluating a Familiar Technology New to our Business:
Adopting a technology that has a track record but is new to your business demands a strategic approach. Begin by understanding your organization's specific needs and challenges that the technology could address. Identify the gaps in your current processes that the technology might fill. Review case studies and success stories from businesses that have integrated the technology to assess its impact in real-world scenarios. Consider conducting a pilot project or trial to evaluate its effectiveness within your unique operational context. Engage with vendor representatives to understand how the technology can be tailored to your requirements. Gauge your team's readiness for adoption by assessing their familiarity with similar technologies or the need for training. Analyse the potential benefits against the implementation costs and potential disruptions. Finally, ensure a smooth transition by developing a comprehensive implementation plan that includes change management strategies, training, and ongoing support.
Whether exploring ground-breaking innovations or adopting existing technologies, a systematic evaluation approach is key to making informed decisions that align with your business goals and enhance your competitive advantage.
How Investors see these developments as opportunity?
Investors evaluating the adoption of emerging technologies in the realms CRO and CDMO focus on a combination of critical factors. They seek technologies that not only align with the growth trajectory of the pharmaceutical and biotech sectors but also offer tangible value, such as enhanced efficiency, cost savings, and improved quality. Differentiation and innovation are key, with a strong emphasis on robust intellectual property protection. Validation through rigorous testing and proof of concept is essential, as is the ability to seamlessly integrate the technology into existing operations. Scalability, competitive positioning, and the expertise of the technology's development team also play pivotal roles in investor decisions. Ultimately, investors strive to identify technologies that promise a clear return on investment, both in terms of financial gains and long-term viability within an ever-evolving industry landscape.
When evaluating new technologies, whether they're entering the market for the first time or are new to your business, a thorough and strategic assessment process is essential. For brand-new technologies, start by understanding their novelty and advantages over existing solutions. Investigate their fit with your business needs and potential to address challenges. Research their track record, seek expert insights, and analyze scalability and compatibility with your infrastructure. Vendor reputation, support, and ROI should also be considered. A balanced evaluation approach aligning innovation with practicality will empower you to make informed decisions that optimize efficiency, drive growth, and propel your business toward success.
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MOLWAY Stands for Innovation
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