Pharmaceutical Industry Must Seize Opportunity to Improve Access to Global Healthcare

Research by Sagentia and Cambridge Judge Business School reveals lack of integration between social, environmental and economic sustainability initiatives.Undergraduate students from Cambridge Judge Business School, part of the University of Cambridge, have found that pharmaceutical companies are missing a trick by addressing social and environmental sustainability separately from economic concerns. Their research revealed ways in which pharmaceutical companies can improve access to healthcare on a global basis and potential alternatives to the ‘blockbuster’ business model this industry has traditionally adopted.An intensive four week research project, completed in collaboration with global technology and product development company Sagentia, explored the opportunities that sustainability could bring to the pharmaceutical industry.The research found that the overall concept of ‘sustainability’ has a range of distinct meanings:Environmental (limiting the impact of a business on the environment in terms of both waste and resources used)Economic (achieving the financial and growth objectives for the firm and continued profitability)Social (meeting the needs of society and improving quality of life in a way that is non-exploitative).A combination of desk research and interviews with key players in the pharmaceutical industry showed that companies are primarily concerned with addressing social and environmental sustainability separately from economic concerns. Their efforts in environmental and social sustainability were focused on managing reputation rather than any potential cost savings or efficiency gains. A number of companies interviewed for the project had begun to develop an integrated approach to sustainability in their corporate policies. However, it was often seen to be an ‘add-on’ to existing business practices rather than having the potential to be a powerful driver for competitive advantage and growth.The research found that the pharmaceutical industry is already making some significant steps towards addressing environmental sustainability through the reduction of waste and, where possible, the use of hazardous chemicals. However, opportunities remain for companies in the areas of social and economic sustainability. For example, in the emerging markets such as India, China and Brazil, pharmaceutical companies have an opportunity to make their products more accessible and protect future revenue streams by developing products more suited to the unique needs of these markets. In addition it was noted that they could also address issues around counterfeiting, cold-chain distribution and pricing strategies.Meanwhile, with the demise of the ‘blockbuster’ drugs business model pharmaceutical companies have an opportunity to improve their economic sustainability by moving towards a more customer focused and healthcare orientated product offering. Moving beyond the traditional ‘drugs selling’ model is an important source of potential competitive advantage and differentiation for these companies.Tim Ollerenshaw, from the Innovation Technology Management Group at Sagentia, commented: “There is a real opportunity for the pharmaceutical industry to address sustainability in a more integrated way, which should improve access to healthcare on a global basis and might just provide an alternative to the ‘blockbuster’ model which is increasingly looking untenable.”The project demonstrates the importance of academic and industry collaborations in maintaining a close link between science and technology research and the commercialisation of medical products. It involved specialists in drug delivery and front end innovation from Sagentia and two Cambridge undergraduate students participating in Cambridge Judge Business School’s Management Studies Tripos. The programme provides students from across the University with skills and experience in the commercialisation of technology, which is core to Sagentia’s service offering which recognises the value of industry and academic working together.Student Nick Cross, Tripos student, commented: “This project gave us an important insight into how academic theory is applied in the real-world which is an invaluable experience for us.”Fellow student Benedict Treloar added: “The ability to speak directly to contacts involved in the industry and talk to them about the issues concerned enabled us to gain insight into the ways that companies actually think and operate in the commercial world.”