Discover how Pharma can break isolation, embrace collaboration and digital transformation to accelerate innovation. Essential insights for life science executives
Pharma is an empire trapped in the Middle Ages
The pharmaceutical industry finds itself trapped in a state of isolation and rigidity. TechOps functions as the medieval authority, much like an emperor, overseeing the various domains of generic medicine, innovative medicine, APIs (active pharmaceutical ingredients), and biosimilars. While crucial to the empire’s survival, these domains operate like isolated kingdoms — self-sufficient, disconnected, and often unwilling to collaborate. This lack of synergy between critical areas makes Pharma appear stuck in the Middle Ages, a period of stagnation and missed opportunities.
Just like in medieval times, where each kingdom sought its prosperity independently of its neighbors, the pharma industry struggles with silos. Each segment — whether generic drugs, APIs, or the more profitable biosimilars and innovative medicines — guards its resources and operates under its own rules. This isolation stifles the free flow of ideas, data, and knowledge, creating barriers to innovation. TechOps collects tribute in revenue but fails to unite these kingdoms.
Why has Pharma failed to break out of this medieval mindset?
The industry infrastructure heavily emphasizes the separation of departments and therapeutic areas. Business units and functions often work in isolation, each using its systems and processes. Different definitions and systems with risk-averse cultures prevent other departments from leveraging breakthroughs in one area, such as a new API for a generic drug. Instead of encouraging a cross-functional collaboration that could speed up drug development and improve supply chains, the industry continues to follow an outdated model of hierarchical control.
This reluctance to collaborate extends to external partnerships, too. Pharma companies often treat the contract manufacturing organizations (CMOs) and suppliers they rely on as outside contractors rather than integral parts of the supply chain. This closeness limits the ability to scale efficiently and respond to market disruptions. In essence, TechOps governs with the same inflexibility as an emperor bound by tradition, refusing to fully integrate all elements of the life science ecosystem into a cohesive, collaborative structure.
What’s holding back this change? A culture of risk aversion. Much like medieval rulers feared losing power through change, many in the pharma industry fear that breaking down these silos could lead to short-term inefficiencies, disrupting revenue streams, or slowing down established processes. The regulatory environment also plays a part. The need for compliance with various health authorities makes it challenging to streamline operations across the entire company.
However, this fear of disruption is shortsighted. The industry is undergoing a transformation driven by digital technologies.
These tools can transform the management of supply chains, the development of drugs, and the conduct of clinical trials. Yet, as long as these departments and functions remain isolated, the full potential of these innovations will remain untapped.
To move forward, Pharma must evolve beyond its current structure. The industry must break the medieval barriers that divide its segments and adopt a more modern, collaborative approach.
Only through collaboration can Pharma emerge from its self-imposed isolation, transform into a cohesive force, and truly embrace the future of life sciences.
Pharma response to disruption? Cutting costs rather than innovating
When disruption hits, Pharma reacts the same way — cut costs. Instead of embracing new ideas or pushing collaboration, the focus turns to cutting. It is a quick fix but causes more harm than good. Saving money means losing knowledge. This approach kills innovation and stops digital transformation.
In the last decade, many pharma companies relied on reducing costs to deal with patent expirations and rising research expenses. From 2011 to 2020, R&D spending by the top 20 pharma firms dropped by 8%. Instead of investing in internal innovation, they chose to outsource their ideas. The result? Wasted potential.
Then came the COVID-19 pandemic. It shook the industry in ways no one expected. Some pharmaceutical companies soared to incredible heights like Icarus flying too close to the sun. Revenues surged as vaccine makers and producers saw their profits skyrocket. The few that won the vaccine race doubled the revenue in 2021. Companies rode this demand wave, reaching growth that seemed impossible just a few years before.
But not everyone took flight. Others with the capacity to scale didn’t rise. Even with the means to deliver treatments, they struggled to catch the market’s attention or keep up with shifting demands. Some companies, weighed down by slow decisions and rigid structures, couldn’t react fast enough. They missed the chance to adapt and innovate.
Fast forward a few years, and the picture looks different. The revenue surge from the pandemic was short-lived. As the world moved on, so did the massive profits. Now, the same companies that had once seen explosive growth are back to old habits: cutting costs. Those that reached great heights are now grounded, slashing budgets instead of finding new ways to grow.
Despite their success, they now face the challenge of staying profitable without the COVID tailwinds. Their answer? Cut costs, freeze investments, and tighten budgets. It’s a cycle we have seen before.
While they saved money in the short term, they gave up on the future. They lost control of critical breakthroughs when they outsourced innovation. This strategic miss left them vulnerable, unable to pivot when new challenges arose. The rise of biosimilars highlights the flaws in this approach. The biosimilar market is booming, set to hit $60 billion by 2025, yet these life sciences kingdoms still will not collaborate.
The lack of collaboration between key areas, like biosimilars and APIs, is a clear sign. Instead of working together to share knowledge and co-develop, they stay isolated. This closed mindset prevents them from using each other’s strengths. Their goal is simple: maintain the status quo.
But this is a dead end. Cutting costs may save money for now, but it is robbing the future.
To succeed today, Pharma cannot act like a medieval empire. It is time to tear down the walls between departments and areas of expertise. If these kingdoms keep working alone, they will miss the power of digital sharing. And that is the pivotal driver of growth.
Innovation comes from collaboration. New ideas emerge when all parts work together, sharing data and insights. AI, machine learning, and automation can unlock huge efficiencies.
There is a catch: none of these tools will matter if the people behind them do not start talking to each other.
It is time for Pharma to stop cutting and start building. Cutting costs is an outdated strategy. The future lies in collaboration, innovation, and digital transformation.
Pharma can no longer act in isolation.
Life Sciences can no longer survive alone. The industry needs to face the truth — no part can succeed in isolation. The walls between generic medicine, biosimilars, APIs, and innovative therapies hinder progress. These divisions increase inefficiencies and slow down treatment development. If the industry sticks to this fragmented model, it will fall behind.
Right now, each kingdom operates on its own. Each part uses its data, its systems, and its own goals. People view collaboration as a benefit rather than a requirement. This siloed setup does not just slow innovation — it raises costs. Teams are solving the same problems repeatedly because they do not share knowledge.
The pressure on Pharma is rising. Competition is tougher, price controls are tighter, and there is more demand for faster approvals. At the same time, complex therapies like gene treatments and biologics are growing. These require quick, flexible production systems. However, departments working alone cannot gain the agility to meet these needs.
Collaboration is the solution. Like modern societies, life science needs partnerships to grow. It is time to break down the walls that silo departments, therapeutic areas, and external partners. We must treat CMOs and suppliers as partners, not as outsiders. Success will come from shared goals, open communication, and real-time data.
A new system is needed. We need a system integrating R&D, clinical trials, manufacturing, and distribution. All areas must share real-time insights. This collaboration can speed up production, optimize resources, and allow faster response to market shifts. Digital tools can help with data standardization and automation, streamlining operations.
The change does not stop there. Pharma must build deeper ties with CMOs and suppliers. These partners are pivotal to scaling up production and getting treatments to patients faster.
By treating them as partners sharing data and strategies, Life Sciences can gain the flexibility it needs to thrive in our fast-paced world.
The age of isolated kingdoms is over.
The future belongs to those who work together. For Pharma, this means tearing down the barriers that have held it back. Collaboration, not isolation, is the way forward.
Orchestrating Synergies Through Digital Pathways
So, how do we achieve this transformation? The answer lies in building a digital pathway that spans the entire biopharma ecosystem. It is not just about adopting new technologies. It is about modeling business processes, data standards, and supply chain functions to enable seamless collaboration.
First, we need data standardization and central storage across all departments — from R&D to manufacturing and distribution. Right now, different teams use different systems and formats. This scattering creates barriers. Data gets lost, misunderstood, or delayed. By standardizing data, we ensure information flows smoothly. Decisions get made faster. Teams react in real-time.
Imagine a world where a breakthrough in R&D is instantly available to the manufacturing team. No delays. No miscommunications. This alignment accelerates development and gets treatments to patients sooner.
Next, we should integrate model-based technologies. These tools improve decision-making in process design and technology transfer. They evaluate multiple scenarios, speculate on outcomes, and optimize processes before implementation.
Simulation reduces risks and saves time.
For example, digital twins can help test changes in a controlled environment. See how a new ingredient affects production. Understand how temperature fluctuations affect yield. This foresight prevents costly mistakes.
Automation and real-time monitoring boost efficiency, increase productivity, and cut risks. Automated systems handle repetitive tasks. This technology frees up human talent for complex problem-solving. Real-time monitoring tracks processes as they happen. Catch issues before they escalate.
Think about a production line equipped with sensors that monitor quality in real-time. If something goes off, the system alerts the team immediately. Quick responses prevent waste and keep schedules on track.
Moreover, AI-driven insights help teams predict issues and solve them proactively. Machine learning analyzes vast amounts of data to spot patterns humans might miss. It forecasts equipment failures, predicts supply chain disruptions, and identifies inefficiencies.
By leveraging AI, we turn reactive processes into proactive strategies. Instead of waiting for a machine to break down, we perform maintenance before problems occur. Instead of scrambling when a supplier delays, we adjust plans in advance.
All these steps lead to one goal: seamless collaboration across the biopharma ecosystem. Embracing digital pathways breaks down walls that keep us in the past. We create a network where information flows freely. Decisions are data-driven. Teams work toward common goals.
But this transformation requires a cultural shift. It is not enough to install new software or buy new machines. Leaders must champion collaboration. Teams need to share information openly. Training programs should equip employees with the skills to use new technologies effectively.
Building digital pathways is about creating a modern, collaborative society within Pharma.
No more isolated kingdoms.
We are forming a unified force that prioritizes innovation and efficiency. The tools are available. The technology exists.
It is up to us to embrace change and orchestrate synergies that propel the industry into the future.
Conclusion: Breaking the Cycle of Isolation
The pharmaceutical industry must embrace a new way of working. The era of isolated kingdoms must end. Instead, Life Science organizations must become a modern, collaborative society where every department, therapeutic area, and partner works toward a common goal.
This mission means embracing digital transformation not as a tech upgrade but as a cultural shift toward greater synergy, transparency, and collaboration. Only then can we fully leverage the potential of digital tools and ensure that life-saving treatments reach patients faster and more efficiently.
Are you ready to break down the walls and create a collaborative, modern supply chain?