As 2025 approaches, the pharmaceutical and life sciences sector confronts significant challenges including geopolitical tensions, cybersecurity threats, and an ageing workforce, reshaping operational practices.
As we approach the year 2025, the pharmaceutical and life sciences sector faces a multitude of challenges and transformations that are set to redefine its operational landscape. In a detailed analysis by Michael Burkhard and Amr Eltablawi from Hexagon Asset Lifecycle Intelligence, key trends poised to significantly impact industry practices have been elucidated, marking a transformative period for stakeholders.
One of the foremost trends identified is the influence of international tensions on supply chains and operational risk. The legacy of the COVID-19 pandemic has intensified geopolitical dynamics, leading to competition among global economic blocs, particularly in vaccine development. In 2025, tensions are expected to remain high, compelling companies to reassess their supply chains in light of new regulations, such as the U.S. Drug Supply Security Act and the EU’s 2024/1860 regulation. As these regulations aim to bolster supply chain resilience, agility will emerge as a critical attribute for companies. The analysts note that while the industry is unlikely to de-globalise drastically, there will be a shift towards strategic mergers, acquisitions, and asset optimisations rather than new facility construction, amidst stabilising capital expenditure growth rates in regions like Europe and the U.S.
Cybersecurity is projected to become an even greater concern for the pharmaceutical sector as the interconnectedness of operations increases. The analysts reference the 2024 cyberattack on Cencora, which disrupted the functions of multiple companies, highlighting the vulnerabilities that come with adopting digital tools. In response to the rising threat of cyberattacks, regulatory bodies are enhancing compliance standards, with the EU’s NIS2 directive imposing strict cybersecurity mandates on healthcare and pharmaceutical entities. They emphasize the urgent need for an industry-wide commitment to bolster operational technology security and improve inventory management to protect against potential breaches.
The trend towards technological integration is also guided by a focus on efficiency over expansion. The shifting demand for innovative therapies like RNA/DNA-based drugs and cell and gene therapies presents complex challenges for manufacturers, including the need for smaller batch sizes and intricate processes. With rising financial pressures from high interest rates and reduced government funding, companies are prioritising operational efficiency. The demand for improved information management systems is noted, as outdated processes consume substantial time and hinder productivity. Manufacturers are increasingly investing in digital twins, which serve as centralised data repositories to streamline decision-making and enhance data management. These tools are further expected to assist organisations in meeting their sustainability targets.
Another critical aspect shaping the future of the pharmaceutical industry is the ageing workforce. With a significant proportion of employees aged over 50 in the U.S. pharmaceutical manufacturing sector, companies face challenges related to worker attrition and a looming skills gap. The report indicates that 40% of the global workforce is contemplating leaving their jobs, exacerbating the existing gap between job openings and qualified candidates. In a bid to mitigate these challenges, there is a marked shift towards upskilling programs, flexible work models, and leveraging digital tools to capture essential institutional knowledge. This strategy aims to ensure that valuable expertise does not dissipate with retiring personnel.
In conclusion, the pharmaceutical industry is poised for a transformative journey as it navigates multifaceted challenges influenced by geopolitical tensions, the necessity for heightened cybersecurity, a drive for operational efficiency, and the complexities associated with an ageing workforce. The insights from Hexagon Asset Lifecycle Intelligence provide a comprehensive framework for understanding the dynamics at play, setting the stage for strategic adaptations in the coming years.
Source: Noah Wire Services
- https://www.tive.com/blog/the-challenges-in-pharma-life-sciences-supply-chains-the-role-of-visibility – Corroborates the impact of international tensions, such as the Russia-Ukraine war and China-US trade tensions, on pharmaceutical supply chains and operational risks.
- https://arxiv.org/html/2308.07434v2 – Supports the analysis of geopolitical strains on global pharmaceutical supply chains, including export bans and their effects on supply chain design and drug availability.
- https://www.csis.org/analysis/bilateral-approach-address-vulnerability-pharmaceutical-supply-chain – Discusses the vulnerabilities in pharmaceutical supply chains due to geopolitical tensions and regulatory issues, such as the concentration of production in single facilities and the impact of regulatory inspections.
- https://www.tive.com/blog/the-challenges-in-pharma-life-sciences-supply-chains-the-role-of-visibility – Highlights the challenges posed by rising energy costs due to geopolitical events, such as the Russia-Ukraine war, on the pharmaceutical industry’s high energy consumption.
- https://arxiv.org/html/2308.07434v2 – Mentions the impact of new regulations and policies on pharmaceutical supply chain resilience and agility, aligning with the need for strategic adaptations in response to geopolitical dynamics.
- https://www.csis.org/analysis/bilateral-approach-address-vulnerability-pharmaceutical-supply-chain – Addresses the importance of regulatory measures, such as the U.S. Drug Supply Security Act, in bolstering supply chain resilience.
- https://www.tive.com/blog/the-challenges-in-pharma-life-sciences-supply-chains-the-role-of-visibility – Notes the shift towards strategic mergers, acquisitions, and asset optimisations rather than new facility construction due to stabilising capital expenditure growth rates.
- https://arxiv.org/html/2308.07434v2 – Discusses the need for operational efficiency and the adoption of digital tools to manage complex challenges in manufacturing innovative therapies.
- https://www.csis.org/analysis/bilateral-approach-address-vulnerability-pharmaceutical-supply-chain – Highlights the importance of improving information management systems and adopting technologies like digital twins to enhance data management and meet sustainability targets.
- https://www.tive.com/blog/the-challenges-in-pharma-life-sciences-supply-chains-the-role-of-visibility – Mentions the ageing workforce and the need for upskilling programs, flexible work models, and leveraging digital tools to capture essential institutional knowledge.