Life Sciences Horizons Brochure 2025 - Flipbook - Page 31
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2025 Horizons Life Sciences and Health Care
Sustainability and digital transformation to reshape global supply chains
Over the next five years, we expect to see increased
digitalization of supply chain processes, particularly
in relation to supply chains supporting biologics (such
as mRNA vaccines) and complex, novel products, like
cell and gene therapies, where end-to-end visibility
and collaboration across stakeholders is required
for successful product delivery to patients. Digital
transformation has been reported as a top industry
priority in recent research3 : approximately 60% of
participants across the U.S., Europe (including the UK),
and Asia reported increased Gen AI investment in their
executive plans. Further, a significant proportion
reported in their plans the scaling of digital twin
capabilities, which create a virtual representation
of a physical asset or process at a point of time.
The shift in focus to digital twins is particularly interesting, as this
technology could improve processes and increase supply chain
resilience. For example, it could model disruption scenarios and
identify supply chain vulnerabilities. This would complement the
industry's current digital supply chain-tools: dashboards with
real-time visibility into suppliers operational performance,
command centers and sensor-enabled track and trace for
end-to-end material and product visibility.
With these developments, we will see greater collaboration
between pharmaceutical and biotech companies, and tech
stakeholders developing and/or licensing these tools. We also
anticipate increased complexity in upstream and downstream
supply chain arrangements to support rolling out these measures,
including in relation to data collection, assurance and ownership,
licensing, and possible handling & implementation fees.
Numerous key markets require biopharmaceutical firms to
commit to certain sustainability requirements with the aim
of reducing the environmental impact of the pharmaceutical
product life cycle specifically and new regulations are planned.
For example, the EU Pharma Package of reforms proposes a
broader environmental risk assessment (ERA), which would
have a reinforced role before granting marketing authorization,
alongside other concrete measures that would apply postmarketing authorization. If an applicant fails to submit
a complete or sufficiently substantiated ERA, or to propose
risk mitigation measures to address risks identified in the
ERA, it may be refused a marketing authorization.
3
The UK National Health Service, the top purchaser of medicines
in England, requires all suppliers to evidence net zero progress
and commitments by 2030. Companies will be required to address
emissions at three levels:
Scope 1: self-generated emissions through manufacturing and
transporting its goods;
Scope 2: emissions produced by energy consumption; and
Scope 3: the emissions of suppliers.
Scope 3 emissions are responsible for approximately 90% of the
industry’s carbon footprint, with the production of APIs, process
chemicals and excipients, and single-use packaging being the key
contributors.
With increased concerns about the demand for clean methanol
outstripping supply by 2035, and increased regulation of
single-use packaging, we expect upstream API suppliers and
downstream packaging suppliers to be key focus areas. It is not
immediately clear how companies will adjust their supply chains
to address these concerns. However, these challenges create
the opportunity for innovative collaborations with suppliers,
including investment in the development of new manufacturing
& packaging processes in return for long-term, secure supply
agreements for cleaner materials.
Penny Powell
Partner
London
Bonella Ramsay
Counsel
London
James Furneaux
Associate
London
Alexandra Wood
Associate
London
Research conducted in 2024 by The Deloitte US Center for Health Solutions with respect to 150 C-suite executives from pharmaceutical, biotechnology,
biosimilar, and medical device manufacturing companies.
