Can you provide an overview of ACG’s offerings to the pharmaceutical industry?

ACG is now the world’s largest integrated supplier of solid dosage products and services – providing hard-shell capsules, film and foil barrier solutions, track and trace systems, and process, packing and inspection equipment. We have over 30,000 installations around the world of pharmaceutical process equipment, packaging equipment, and software and inspection, where we have developed an entire platform for track and trace serialization aggregation and are working on data analytics. These are facilitated through 25 manufacturing sites world over.

What work has ACG undertaken in the track and trace space?

ACG serializes every product coming off a production line. This has been enabled via adoption of tech such as blockchain that allows us to efficiently track and trace each step of the process. For example, an individual blister in a carton receives a unique identification tag. This link is tracked till the end-point, delivery of the parcel. Today, a consumer can purchase a pharmaceutical product and scan it with their phone to see exactly where it was produced and when it will expire. If there are any discrepancies in the supply chain – this method also helps us identify the gap quickly.

Despite ensuring affordability of pharmaceutical products, how do price control mechanisms impede innovation?

Price control is a unique bind for Indian pharma. Unlike mature markets such as the US, where drug prices are market-controlled, here the government and regulators play a pivotal role in the entire process.

For Indian pharma this is a double-edged sword—companies have learned to maximize efficiency from this system by squeezing every ounce of efficiency out of their processes—but with slim margins, that allow little incentive to modernize and upgrade their manufacturing capabilities and capacity. On the world stage, this places our industry at a distinct disadvantage, as companies can’t compete with their rivals worldwide and don’t invest in R&D to develop breakthrough high-margin drugs.

I contend that its a myth that Indian Pharma cannot competitively manufacture essential medicines under these constrained circumstances. Instead, with technological developments such as Industry 4.0 and digital manufacturing globally, I believe that Indian drug makers can harness these tech upgrades to rejuvenate their outmoded businesses—and even prosper.

Today, medicines are manufactured using a batch process, which is wasteful and inefficient. These firms need to consider shifting to a process of continuous manufacturing, which shaves valuable startup capital costs and helps pharma companies build sounder businesses

The government has a role to play too: it needs to incentivize companies making this upgrade with financial sops to ensure they invest in building a more robust and competitive industry, primed to compete in the global stage.

In what ways do you see India’s government supporting the development of the country’s pharmaceutical sector?

India became a leading supplier first with life-saving medicines and later with Made-in-India vaccines during the pandemic, solidifying our position as the ‘Pharmacy of the World’.

To consolidate this momentum, our industry needs to build on its fundamental strengths while making a quantum leap towards innovation.

The route for India’s success is three-fold: Firstly, after establishing ground in the generics space, the industry is ready to build its R&D and innovation capability and adopt advanced manufacturing technologies to remain competitive in the global scenario. Secondly, we must embrace USFDA benchmarks to improve our current levels of quality and compliance. Thirdly, despite a vast skilled population and deep expertise in healthcare, we lack the infrastructure and foundations such as hospitals, availability of latest medical technologies, amongst others.

Looking ahead, are there any areas of the life sciences that you find particularly exciting?

Personalized medicine will disrupt the pharma industry. I also see more people looking to leverage the digitization of patient care, such as through telemedicine or the creation of wearable technologies. In most cases, it is about pharmaceutical companies going beyond the hospital setting to connect with patients in a more comprehensive way that accounts for their lifestyles.