The pharmaceutical industry, both globally and in Germany, is facing a fundamental transformation. New technological innovations, constantly changing regulations, and growing digitalisation demand a high degree of flexibility. In a world that, since the 2020s, has been described as BANI (in addition to VUCA) – brittle, non-linear, and incomprehensible – all industries are required to respond to these circumstances. This also impacts the professionals needed in the future. How employees can be retained and how interest in future generations can be sparked will be explored here.
Growth and Challenges for the Pharmaceutical Industry
In 2024, the pharmaceutical industry is expected to grow by 2.0%, and new investments in Germany are also planned, as described here. The pharmaceutical sector remains a reliable economic factor in Germany, and international pharmaceutical companies are once again investing. Additionally, 40 new medicines are expected to be approved in the European market in 2024. Therefore, the Association of Research-Based Pharmaceutical Companies concludes that the patent market is stable.
However, there are some challenges that need to be addressed in the future. On the one hand, the costs of medicines are increasingly being regulated. For example, the EU plans to shorten the exclusivity period for new medicines from 10 to 8 years, as reported by the management consultancy and technology company ZS. Furthermore, due to demographic changes, the contribution rates for healthcare expenses are also being adjusted. The costs of an ageing population are rising, while the younger generation is not large enough to cover these expenses adequately.
Nonetheless, the pharmaceutical industry is highly innovative. It is already adapting to the growing digitalisation of the life sciences sector through various measures. It could be said that the pharmaceutical sector is responding to the complex conditions of the BANI world with greater flexibility and new networks. This is, in part, a necessity, as can be seen in the example of supply chains.
Diversification of Supply Chains
Across Europe, the dependence on certain active ingredient sources, such as those from China for the production of antibiotics, is a reason to diversify supply chains. Politically, laws are being proposed to combat supply shortages. For example, European suppliers will be prioritised for antibiotic tenders for the first time. In Germany, there is the Pharmaceutical Supply Shortage Prevention and Improvement of Supply Act. Europe-wide initiatives are also underway to diversify supply chains and strengthen resilience and competitiveness.
To deal with the volatility of supply chains, the pharmaceutical industry has already implemented several solutions, ranging from supply chain optimisation to end-to-end data collaboration. Ilse Henne suggests forming networks to better protect supply chains in the future. A key factor in stabilising these supply chains is the integration of digitalisation and artificial intelligence (AI). These technologies are already being applied, often unnoticed, across various levels of the pharmaceutical industry, from research to production. The German Association of the Pharmaceutical Industry concludes: The revolution is already a reality in the pharmaceutical industry.
Digitalisation in the Pharmaceutical Industry
Artificial intelligence is already being used in drug research and will continue to be expanded. For instance, researchers use search algorithms to find specific building blocks for antibiotic molecules, enabling the creation of new active substances. International collaborations are already in place, such as Novartis partnering with Microsoft and AstraZeneca with Nvidia, using big data and data analytics to unlock shared databases.
AI and machine learning are also being utilised in pharmacovigilance, the monitoring of drug safety, enabling personalised medicine. This approach, through genome sequencing of individual patients, can predict drug compatibility. The impact of genetic engineering on the pharmaceutical market became particularly evident with the approval of the mRNA vaccine from BioNTech and Pfizer during the COVID-19 pandemic. Genetic diagnostics have been applied in medicine for years and are regulated under the Genetic Diagnostics Act.
Personalised Medicine
Through genome sequencing, the compatibility of a drug can be measured using comparison data. Preventive individual medication can also be prescribed through genetic diagnostics. Pharmacogenetics, which examines the effects of genes on individuals, will play an increasingly important role not only in research but also in applied medicine. This allows for the creation of individual therapies. However, the issue of data protection is extremely important, especially on this personalised level. On a nanoscale, the use of miniaturised electrodes can provide much more precise results in measuring the effects of drugs or bodily functions. This touches on the brain-computer interface, which, through precision medicine, could also open the door to manipulations. Moreover, the use of robots in the pharmaceutical industry is experiencing significant growth.
Bioinformatics and Interdisciplinary Teams
Bioinformatics, which is also offered as a master's degree programme, can assist in applying software tools and computer programmes to genomic data. This ranges from data analysis to the identification of target molecules and, ultimately, the optimisation and prediction of drug compatibility. Laboratory medicine and robotics can also be supported by these professionals.
In any case, it makes sense to connect IT professionals with knowledge of the specific requirements of the pharmaceutical industry, and vice versa, to address the growing digitalisation. Ethical questions can also be supported by these professionals. Another point to consider is dealing with (mostly older) employees who are not digital natives and need to become familiar with a new digital mindset. This can be supported by professionals knowledgeable in IT, facilitating intergenerational teamwork.
Furthermore, interdisciplinarity extends beyond just IT professionals. In university research, interdisciplinarity in pharmacy has already progressed significantly, as mentioned here. The PharmaScienceHub, an interesting collaboration between the university and the Helmholtz Institute for Pharmaceutical Research, was opened this year to consolidate active ingredient research at the Saarland location.
Recommendations for Action
To meet the increasing complexity in the pharmaceutical sector, professionals should be as flexible as possible. This starts with the place of work, as the pharmaceutical industry in Germany is often concentrated in clusters (Bavaria, Ruhr area). Promoting intergenerational and interdisciplinary collaboration will also support the existing workforce, as traditionally, a wide variety of professional groups work together in the pharmaceutical industry.
There is also the need for flexibility regarding growing digitalisation. It is worthwhile to build a communication structure that is open enough to inform all employees and reduce potential uncertainties. This could also help encourage experienced employees to pursue further training in IT, and vice versa. In any case, it is advantageous to seek professionals who are aware of or trained in the significant impact of digitalisation on all processes in the pharmaceutical industry.
Conclusion
The ongoing development and implementation of bioinformatics solutions will be crucial in meeting the future demands of modern medicine. The challenges in pharmacovigilance, genome sequencing, and the pharmaceutical industry's supply chains are as diverse and complex as the global situation. It is all the more important to respond as flexibly as possible and build networks at all critical points, whether through supply chain diversification, research cooperation, or interdisciplinary collaboration. Professionals should be familiar with or trained in IT and be aware of the needs of the pharmaceutical sector. Through further training and the creation of networks, a company can become very attractive to future applicants while simultaneously retaining and training current employees for the future of the pharmaceutical industry.
