The $50-billion Indian pharma industry, which is referred to as the pharmacy of the world, has emerged as a top-five pharma player globally in terms of volume. When it comes to value it, however, stands at a distant 14th, indicating that it lags behind its peers.

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Generative AI and data can propel India as a top player value-wise also, according to BioAsia and EY Parthenon (EY-P).

In a white paper titled ‘From volume to value: Indian pharma’s transformation with data and AI’ released at the inaugural of BioAsia 2024 here on Tuesday, they said the industry set a target of breaching the $130-billion mark by 2030. “With the prevailing growth rate of 6.2 per cent, achieving this target seems improbable. Rather than relying on manufacturing simple generics, there is a heightened need to embrace diversification and value addition over volume,” it  said.

Revenue augmentation demands a strategic revamp, necessitating a departure from conventional growth models. It should also focus on up-and-coming areas such as biologics and biosimilars, and antibody-drug conjugates linage products in order to make a shift to value from volumes.

Radical shift

Calling for a radical shift in the research and development value chain, the report said that GenerativeAI could bring down the time to develop a drug significantly while also bringing down the cost of developing drugs. “GenAI can predict bioactivity, toxicity and physicochemical properties. By offering the potential to lower early-stage drug development costs by 25 per cent to 50 per cent and accelerate the identification of failures, Gen AI positions Indian pharmaceuticals as innovators beyond generics,” it said.

The report was released by Telangana Chief Minister A Revanth Reddy along with keynote speakers at the inaugural of Bio Asia 2024.

Suresh Subramanian, Partner & National Life Sciences Leader, EY Parthenon India, said that  GenAI will contribute $4-5 billion to the Gross Value Added (GVA) of the Indian pharma sector by 2031. “GenAI is making humble beginnings in revolutionising the health sciences sector in India. In the realm of patient care, it significantly impacts the patient’s journey by empowering patients to better manage their conditions, help in making decisions and overall, as a seamless patient-doctor interface,” he said.

Earlier the Chief Minister presented Genome Valley Excellence Award to Gregg L. Semenza, Nobel Laureate and Professor, Johns Hopkins School of Medicine. Christopher Boerner, CEO of Bristol Myers Squibb; Gregg Semenza, Nobel Laureate and Professor at Johns Hopkins School of Medicine; and Rodney Hochman, President & CEO of the US-based Providence, delivered the keynote addresses.