Five key trends shaping the pharma industry in 2024

We rate, rank and count down the biggest influences behind the evolving pharmaceutical landscape (1,400 words, 7 minutes)

The pharmaceutical industry is undergoing transformative tech changes; there is no argument about that. In the life sciences sector, the Deloitte consultancy reports that merging technologies such as Artificial Intelligence (AI) and Machine Learning (ML) are becoming integral by automating tasks, improving workflows, and optimizing processes, leading to cost savings and enhanced productivity.

An article in Contract Pharma Magazine reports that other key trends, such as breakthroughs in cell and Gene Therapy, the growing presence of biosimilars, the increasing reliance on real-world data (RWD), and the shift toward outsourcing to Contract Development and Manufacturing Organizations (CDMOs), are also reshaping the industry.

While our sources note numerous tech trends affecting the life sciences, here are the five considered most significant:

1. Artificial Intelligence (AI) and Machine Learning (ML)
   According to Technology Networks, AI and ML are transforming every aspect of drug development, from initial discovery to clinical trials and marketing approaches. AI-powered tools can now identify potential drug targets, refine clinical trial designs, and predict how patients might respond to therapies. Leading pharmaceutical firms, including Moderna, are incorporating AI into their operations to boost efficiency and safety. Moderna has recently partnered with OpenAI to further mRNA medicinal research. This alliance has led to mChat, a bespoke version of ChatGPT for Moderna, which has been embraced by 80% of the company's workforce since its debut in early 2023. The collaboration extends throughout Moderna's divisions, encompassing legal, research, and production sectors.

2. Cell and Gene Therapy
   According to Pharmaceutical Technology, the emergence of cell and gene therapies (CGT) is the top pharmaceutical industry trend for 2024. These therapies are reshaping the industry by offering groundbreaking treatments for complex diseases such as genetic disorders and cancers. The field has rapidly evolved since the approval of Dendreon Pharmaceuticals’s sipuleucel-T (Provenge) and CAR-T therapies in 2017, but the full potential of CGTs is still being explored. Oncology remains the primary focus, although efforts are underway to explore CGT for other conditions, such as metabolic and central nervous system disorders. The publication notes that the global CGT market is projected to reach US$80 billion by 2029, with oncology continuing to dominate.

3. Biosimilars
   Another trend for 2024 in the pharmaceutical industry is the rise of biosimilars. Technology Networks says biosimilars are gaining traction as cost-effective alternatives to original biologic drugs, particularly as patents for significant biologics such as Humira expire. However, the publication notes that while biosimilars promise reduced healthcare costs and broader patient access, their market penetration has been inconsistent. For instance, despite the availability of multiple Humira biosimilars, market uptake has been hindered by formulary placement issues and economic dynamics, such as rebate structures. On the other hand, the success of biosimilars for trastuzumab (Herceptin) indicates that with favourable market conditions, biosimilars can significantly affect pricing and market share.

4. Real-World Data (RWD)
   International services company Global Pharma Tek reports the utilization of real-world data is becoming increasingly integral to drug development and post-market surveillance. Clinical Pharmacology and Therapeutics notes that RWD includes a detailed study of patient health status, treatment data, and health reports, which offers insights into how drugs perform outside the controlled environment of clinical trials. This information provides valuable insights on long-term efficacy, safety, and patient outcomes. Regulatory agencies are increasingly recognizing the value of RWD in therapy approvals and monitoring, particularly for chronic conditions.

5. Pharmaceutical Outsourcing and CDMOs
   According to Contract Pharma Magazine, the shift toward outsourcing in the pharmaceutical industry, particularly to Contract Development and Manufacturing Organizations (CDMOs), is accelerating. Companies increasingly rely on CDMOs to manage complex processes, from early-stage development to commercial manufacturing. This trend is particularly pronounced in the biologics sector, where the development and production complexity requires specialized expertise and facilities. The flexibility and scalability offered by CDMOs enable pharmaceutical companies to respond more quickly to market demands.

Additional reading:

• pwc - Global M&A Trends in Health Industries

• Apprentice - Top 10 Pharma Trends for 2024

• ZS - A coming (r)evolution? Pharma industry outlook, trends and strategies for 2024

THIS WEEK 08/13/24

• Adaptimmune Therapeutics announced the U.S. FDA accelerated the approval of afamitresgene autoleucel (Tecelra) for treatment of adults with unresectable or metastatic synovial sarcoma who have received prior chemotherapy, are HLA-A*02:01P, -A*02:02P, -A*02:03P, or -A*02:06P positive and whose tumour expresses the MAGE-A4 antigen.

• The U.S. FDA approved Sandoz’s aflibercept-abzv 2 mg vial kit and pre-filled syringe for intravitreal injection (Enzeevu) to improve and maintain visual acuity in neovascular age-related macular degeneration patients.

• The U.S. FDA approved RS Pharmaceuticals’ epinephrine nasal spray (neffy) for treating Type I Allergic Reactions, including anaphylaxis, in adults and children who weigh at least 30 kg (66 lbs).

• Citius Pharmaceuticals announced the U.S. FDA has approved denileukin diftitox-cxdl (Lymphir), a novel immunotherapy, for treating adult patients with relapsed or refractory cutaneous T-cell lymphoma.

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NOW LISTEN UP

In season 12 of the NPC Podcast, Brian Bloom, CEO of Bloom Burton & Co., gives insights into changes in the Canadian Healthcare investment landscape, the return of the generalist investor, and the rise of consumer empowerment in healthcare. Hear him in conversation with podcast hosts Mitch Shannon, Jim Shea, and Mark McElwain.

HEALTHBIZ REWIND

This feature of NPC Healthbiz Weekly looks back at some of the most insightful moments from previous NPC Podcast episodes. In Healthbiz Rewind, you’ll read bold life sci predictions made during the renowned “Prognostication Korner” segment of the NPC Podcast.

Durhane Wong-Rieger
President & CEO
Canadian Organization for Rare Disorders
Season 01, episode 01
Listen to this episode here

What advice would you give the pharma teams listening to the podcast about working with patient groups? (This episode was recorded in July of 2020)

We should continue to do the one thing that has always worked: start with the patient. This approach has been successful for companies that have truly committed to it, and it’s become increasingly important over time. In the rare disease space, patients often find researchers and raise enough money to attract interest from companies. They’ve always been at the centre of it. The most successful companies genuinely start with the patients, partner with them, truly understand them, and adapt—not just in clinical trials but in the product itself.

Continuing to work closely with patients has been invaluable, not just in delivering therapy but in every aspect of the process. In the rare disease space, when a big company buys a smaller one, we often fear losing the personal connections those smaller companies have built with the patient community over time. These connections aren’t just about selling a product; they’re about relationships—companies knowing these people, living with them, becoming like friends and family.

That’s what we need to maintain, starting with the patients. What I’d love to see the industry do, especially in rare diseases, is think about global access. Companies have traditionally priced drugs based on the assumption that they’ll only reach a small percentage of the appropriate patients. But what if we could give them access to the entire world? How would pricing change pricing if we had 20,000 patients globally and could make the drug available to everyone? This requires investment, starting with the patients. We do this well in the developed world, where clinics already exist, but we must invest in places where they don’t.

Successful rare disease clinics exist in countries like Malaysia, Indonesia, China, and parts of Africa because companies have stepped in to help build them from the ground up. This is a strategy that can be replicated. As we develop new therapies, we must think about global access and invest in regions that need it most. Some of the latest therapies, like gene therapies, are most needed in areas with the least resources. We need to ensure these treatments are available globally. As countries come together to provide the Covid-19 vaccine worldwide, we need to do the same with new drugs and therapies.

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INTRODUCING DERMATOLOGY.BUSINESS

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If you’ve got your hand up, head over to Dermatology.Business, the new newsletter from the same fine folks who bring you NPC Healthbiz Weekly, and so many other information sources you depend on. It’s published every other Wednesday, and the edition is coming out tomorrow (08/314/24) at precisely 6:00 a.m. EDT. It has plenty of breaking news to tell you about, as reported directly from the Dermasphere. Check it out here and request your free subscription.

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