EY Parthenon & BioAsia’s latest report reveals GenAI's impact on drug development, operational efficiency and more

• Indian pharma companies are incorporating AI algorithms into their R&D operations, clinical trials and streamlining processes
• Firms deploying GenAI are seeing reduction in early-stage drug development costs, and improvement in operational efficiencies

Hyderabad, 27 February 2024: EY Parthenon (EY-P), the leading strategy consulting firm, in partnership with BioAsia, released a report titled, ‘From volume to value: Indian pharma’s transformation with data and AI’. Released at the marquee life sciences summit - BioAsia 2024, the report underscores Gen AI's potential in revolutionizing drug discovery and R&D, employing advanced technologies for Good Manufacturing Practices (GMP) and reinforcing supply chains.

The report signifies a paradigm shift in the Indian pharma landscape, heralding a future where data and Artificial Intelligence (AI) converge to unlock unprecedented possibilities. As stakeholders embrace these transformative trends, India is poised to lead in pharmaceutical advancements, driving innovation, and fostering a resilient ecosystem for the benefit of global industry.

Suresh Subramanian, Partner & National Life Sciences Leader, EY Parthenon India, emphasized the seismic impact, citing the recent EY India Gen AI report, which projects that GenAI will contribute with USD 4-5 billion addition to the Gross Value Added (GVA) of the Indian pharma sector by 2030¹.

“GenAI is making humble beginnings in revolutionizing the Health Sciences sector in India. In the realm of patient care, it is significantly impacting the patient journey by empowering patients to better manage their conditions, help in making decisions and overall, a seamless patient-doctor interface. Larger gains are to be witnessed in areas such as R&D, manufacturing, and supply chain management, where both artificial intelligence (AI) and GenAi are poised to deliver substantial operational efficiencies. While we celebrate the remarkable gains, it is imperative to underscore the importance of data governance and management. As we embrace these technological advancements, ensuring data privacy and compliance with regulatory requirements must remain a top priority.”

Echoing this sentiment, Shakthi Nagappan, Director of Life Sciences, Govt. of Telangana, and CEO of BioAsia, hailed the age of Data and AI as a transformative era in healthcare and life sciences. He said, “This technological fusion is propelling advancements across the entire life sciences value chain.  The transformative impact of GenAI on the life sciences sector is significant, ranging from catalyzing drug discovery, clinical trials, and enabling precision medicine to streamlining healthcare operations. Healthcare delivery mechanisms too are undergoing profound reshaping due to innovations in data and GenAI. Against this backdrop, we're pleased to collaborate with EY Parthenon as our knowledge partners for the 21st BioAsia edition, dedicated to the theme of 'Data and AI: Redefining Possibilities’.”

Key imperatives to achieving Indian pharma’s transformation with data and GenAI:

GenAI in drug discovery

The report highlights that AI, particularly Gen AI, now emerges as an efficient alternative to traditional screening methods, offering a transformative tool with the potential to significantly impact drug development. Indian companies have increasingly started experimenting with Large Language Models (LLMs) and Gen AI applications in R&D, highly targeted therapies, and operational efficiency improvement.

From reshaping the entire value chain of R&D through the use of Machine Learning (ML) and Natural Language Processing (NLP), Gen AI is accelerating drug discovery, revolutionizing clinical trials, and guiding scientists in the development of new drugs for diseases such as cancer, Alzheimer’s, arthritis, fibrosis, and other rare diseases.

Shifting to value-centric R&D with Gen AI

By leveraging Gen AI, the industry can ambitiously construct a robust innovation pipeline, report early stage development cost savings, and detect failure early on. With its capability to establish the right structure for drugs and make predictions related to bioactivity, toxicity, etc., GenAI can significantly contribute to target identification, predicting drug target interactions, compound generation, pharmacology analysis, drug formulation design, and safety monitoring. These strategic advancements underscore the transformative potential of Gen AI in reshaping the landscape of drug development, fostering innovation, and positioning India at the forefront of pharmaceutical advancements.

Building resilient supply chains

As the pharmaceutical sector charts its course forward, the convergence of these trends — localization, digitization, and sustainability — will shape a more resilient, efficient, and responsible supply chain. Navigating these transformative currents requires strategic foresight, collaboration, and a commitment to overcoming challenges on the path to a future-ready pharmaceutical supply chain.

Beyond cheap pills: digital upgrade to boost manufacturing, quality and compliance

The report points that to achieve India’s target by 2030, the country must prioritize setting up large-scale plants, both for APIs and formulations. Reducing human intervention in pharmaceutical processes is considered a key strategy for enhancing medicine quality and standardizing procedures, promising improved efficiency and high standards in manufacturing. The path forward is clear: double down on quality, embrace Industry 4.0 technologies, and prioritize innovation.  

About EY Parthenon

With over 6,500 EY Parthenon professionals and 750+ partners across the globe, EY Parthenon is one of the largest strategy consultancies in the world. EY-P help CEOs and business leaders design and deliver transformative strategies across the entire enterprise, to help build long-term value to all stakeholders. With a result-oriented approach, EY-P teams bring experience and scale to each client, helping them to realize their strategies. By connecting teams and technologies from within EY-P and the broader EY ecosystem, EY-P can provide clients with corporate, transaction and turnaround strategies that are actionable and impactful and that help deliver long-term, sustainable value.

Whether it’s digital transformation, sector convergence and dislocation, or financial and operational complexities, EY-P teams bring data analytics, leading technology, and digital capabilities to a CEO’s toughest strategic issues. In doing so, EY Parthenon teams can move quickly from idea to implementation to help clients realize their strategy with speed and certainty; we call this Strategy Realized. 

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About BioAsia:

BioAsia is born with a vision to enhance, enrich and encourage newer innovations, path-breaking discoveries and effective solutions in the biotechnology industry by offering a vibrant global platform for convergence of the key stakeholders - Biotech & Biopharma Companies, research institutions, academia, investors, service providers, policymakers, regulators, and analysts. BioAsia is focused in its efforts - to drive the growth of the industry by enabling an effective environment for fostering collaborations, JV’s M&A’s; ensure knowledge and experience sharing by global industry players to benefit all stakeholders; promote innovations and initiatives through appropriate awards and recognitions; play a pivotal role in advocating issues to the policymakers and chartering the road-map of biotechnology. BioAsia is a dynamic platform for companies -to exhibit, launch and showcase their unique strengths, products, and services. BioAsia is playing the role of a key catalyst in mobilizing all elements that are required to drive the growth of the emerging industry of Biotechnology as well as optimize the immense business potential of biotech. On a larger level, BioAsia is working to drive a global transformation from the treatment of illness to wellness.