Words by GOLD newsdesk
The pharmaceutical, healthcare and life sciences sectors expect to spend more on R&D in 2023 despite economic and political uncertainty, according to a new report from the business performance specialist company Ayming.
The fourth annual ‘International Innovation Barometer’ report reveals 36% of these companies expect to spend significantly more, and 27% somewhat more, on R&D next year, while working to reduce their energy consumption and dependence on fossil fuels to capitalise on the significant cost benefits associated with sustainability.
Some 82% of pharma companies have already been forced to make changes to counter rising energy bills, with over 36% describing those changes as radical – more than any other sector – and 47% making minor or incremental changes. Making energy efficiency savings was by far the most popular tactic (41%), with finding alternative energy sources following in second position (30%).
According to Fabien Mathieu, Partner and Managing Director, Ayming France, the energy crisis has forced a lot of companies to look at even the most generic products. “What’s profitable? Where can we reduce costs? Pharmaceutical companies might have not done any R&D on some of their basic medicines for five years because it works and was profitable. But now it might not be so, they might take another look at it and try to reduce the cost of it,” he explains.
What’s more, the report also reveals that the pharma industry leads the way at innovating locally, with 54% opting to innovate locally only – almost 10% above the average – and 39% choosing to innovate both locally and internationally. Mark Smith, Partner R&D Incentives, Ayming UK, puts this down to the complications of pharmaceutical regulation differing substantially from country to country, “especially compared to the automotive industry, which is more universal and consistent”.