Arpita Singhal, Managing Director of Alvarez & Marsal’s Life Sciences division, gives EBR the inside scoop on investment trends within the biopharma industry today, addressing areas such as risk exposure, industry trends, and future growth potential.

EBR: How have life science companies reacted to the market shifts towards digital health innovations and AI?

Arpita Singhal: The majority of firms have reacted positively to the transition towards digital health innovations and the advancement of AI and, while certain firms lag behind in their progression, digital uptake is top of the agenda for the life science industry.

Thanks to digital health innovations, life science is now becoming increasingly integrated with healthcare
service and delivery. It used to merely create the pill that goes to the healthcare service provider, and then to the patient. Now, we are seeing better data connection and the tightening of the initial supply chain through digital capabilities. The pharmaceutical developer is now a part of the drug delivery process instead of just inventing the therapy itself, closing the loop and creating a new life science ecosystem.

What other trends should life science companies be mindful of when considering investment strategies?

A fundamental consideration for any life science company when it comes to their investment strategy is the point of delivery. The consumer and retail worlds are becoming a bigger part of how people receive their healthcare and health benefits. Firms ought to be diversifying away from in-person doctor consultations and reflect on how they are ensuring convenience to the end consumer in the development of medical products.

Another essential element, as demonstrated by the pandemic, is the speed at which pharmaceutical companies can introduce products to the market. Drug manufacturers have a limited amount of time to capitalise on the need for a particular product, and are essentially racing to beat competitors to the punch. As such, it is crucial that they are cognisant of speed-to-market in their investment procedures, particularly in the R&D process.

Have the turbulent last few years affected companies’ willingness to expose themselves to elevated risk?

I think it is less about elevated risk now; it is not something that firms want to expose themselves to. What the last two turbulent years have proven is that the old models of clinical research, product filing, R&D, and speed-to-market should all be challenged. It has also forced senior decision- makers to question how they can innovate and establish a robust framework from which businesses can act quickly the next time they need to bring a leading vaccine to market.

Has the COVID-19 pandemic opened up new opportunities for growth?

The pandemic has posed novel challenges to the pharmaceutical sector which have subsequently opened up new opportunities for growth that may have previously been overlooked. The nature of the COVID-19 vaccine and the need for it to be rolled out to patients globally has prompted firms to self-assess their supply chain resiliency and question how they can reach patients in less developed countries.

Conventionally, areas including Europe, China, and North America have been prioritised by pharma companies in their product roll-out, given that they have historically provided the bulk of business. Now, companies are self- reflecting on their existing infrastructure and questioning how they can access more remote areas such as Sub-Saharan Africa with their medicine. Undoubtedly, this will filter through to other therapeutic areas, creating new channels of growth for pharma companies, logistical- based investment into the various regions, and ultimately improving global access to critical medicines.

Where do you see the most potential for future growth within the life science industry?

Personalised medicine embodies the industry’s progression towards next generation, individualised treatment within the healthcare practice. It allows data originating from the patient to flow back to life science companies, essentially reinventing the one-way system that healthcare has previously been structured in. Crucially, it overcomes the limitations of traditional medicine, enabling the prediction of susceptibility to disease, shifting the emphasis from reaction to prevention, and fostering a greater connection between the patient and their treatment.

‘This article is taken from European Biopharmaceutical Review October 2022, pages 12-13. © Samedan Ltd’