By: Hillary Dukart, Laurie Lanoue, Mariel Rezende, and Paul Rutten

The article examines how pharmaceutical companies must rethink their operations strategy amid multiple global pressures.

Key Challenges

  • Rapidly growing global demand
  • New therapeutic modalities like cell and gene therapy expanding to 21% of drug pipelines
  • Supply chain disruptions representing potential 25% EBITA losses over a decade
  • Inflation pressuring profit margins

Six Major Implications

  1. Rising operational complexity
  2. Increased risk
  3. Shifting capability requirements
  4. Higher capital expenditure
  5. Variable-cost increases
  6. Potential cost-saving opportunities

The authors emphasize that "rising global demand is still a significant challenge for the industry" and note the pharmaceutical sector faces a "talent shortage linked to wider labor market trends."

The Path Forward

The article concludes that digital and analytics advancement offers a pathway forward, though no pharma company has yet emerged as a global leader in this transformation. Leadership must act quickly to develop integrated, long-term operational strategies ensuring enterprise continuity while maintaining patient delivery.