Article Excerpt
The pharmaceutical industry has been trying to embrace sustainable production. For Indian players, this transition to sustainability can be a costly affair, leading to an increase in the prices of medicines. But, say experts, it is more important to consider the long-term benefits of such exercises.
“While the initial investment might be higher, embracing eco-friendly practices can lead to reduced energy consumption, waste reduction, and increased operational efficiency over time, ultimately resulting in cost savings,” says Nikkhil K Masurkar, CEO, Entod Pharmaceuticals. “Moreover, the global regulatory landscape and market trends increasingly emphasise sustainability, making it crucial for Indian pharma companies to align with these expectations to remain competitive in international markets and avoid potential market access barriers.”
“As consumer awareness and demand for sustainable products grow, companies demonstrating environmental responsibility could gain a competitive edge, potentially justifying a measured increase in medicine prices for environmentally conscious consumers. Governments and international organisations may also offer financial incentives or subsidies to support the adoption of eco-friendly practices, helping to mitigate transition costs. By strategically planning the transition, prioritising high-impact changes, and gradually implementing improvements, the Indian pharma companies can effectively manage the challenges and reap the long-term benefits of a more sustainable and competitive future,” adds Masurkar.
Similarly, Arushi Jain, Director Corporate Growth & Excellence, Akums Drugs & Pharmaceuticals, says while transition to sustainable production processes may initially result in increased costs, the Indian pharma companies have potential to effectively navigate this transformation.
Relevance
This article talks about some of the positive and negative effects that sustainability has / will have on the pharmaceutical market. Firstly, it mentions that prices will surely rise with the development of new technologies and lots of research going into new methods of medicine. However, the article talks about how the longterm effects of going more sustainable outweighs the negative short term effects. Reducing waste and increasing efficiency are two of the possible future outcomes that can come out of research into sustainable medicine practices.
Cost can be a massive roadblock for many patients seeking new treatments, especially for new and emerging tech. Patients will surely be unhappy with large price increases. However, sustainability and the overall waste that comes out of the pharmaceutical industry is something that needs to be better managed. Patient need to be able to trust their healthcare providers and seeing that their prices have increased dramatically can be a hard thing for patients to acknowledge. Creating a transparent and trusting environment is key to having successful treatment and management of a condition.
Sources
Pandey, A. (2023, October 16). Pharma industry’s costly transition to sustainability can be made lucrative. The Economic Times. https://economictimes.indiatimes.com/small-biz/sustainability/pharma-industrys-costly-transition-to-sustainability-can-be-made-lucrative/articleshow/104459557.cms?from=mdr
