#Pharma-Manufacturing

Sustainability challenge and related SDGs

Until the 19th century, pharmacists were artisans which produced drugs and medications in small quantities in their backrooms.

Today, drugs come from mass production and pharmaceutical companies are subject to strict guidelines in the production process to ensure that the medicines are sterile, pure in quality and safe.

New products take years to develop and go through a strict multi-step approval process. Once a new product is ready to be launched, it must be manufactured to a high standard, efficiently and on a large scale.

The process differs for the various pharmaceutical forms such as tablets or intravenous treatments. Different feedstocks and catalysts are needed for a great number of chemical processes, and a lot of energy is being used.

Before pharmaceuticals can be given to patients, they must be manufactured and distributed. Therefore, #PharmaManufacturing is essential for achieving SDG 3 "Good health and well-being".

Possible solutions and their contribution to achieving the SDGs

The efficient production of pharmaceuticals in large quantities and high quality requires specific know-how, machinery, processes, quality control and, of course, access to chemical ingredients.

For smaller innovative companies building their own infrastructure may not be worthwhile. Therefore, these tend to cooperate with suppliers of chemical ingredients and larger manufacturers, often even with competitors.

To provide the required capacity and keep up with latest production methods, even the largest manufacturers have to regularly modernize their facilities. Recent developments have shown that the design, development and manufacturing of pharmaceutical products can be improved by efficient processes that minimize waste, reduce the consumption of resources and avoid the use or generation of hazardous substances.

Chemical processes can be optimized, for example by intelligent selection of starting materials and reagents, sensible use of solvents, or use of catalysis.

In addition, these updates also enable a transition from existing linear manufacturing to a more holistic, circular approach. This will optimize costs while achieving greater sustainability within the supply chain.

Primarily related SDG Targets:  3.1, 3.2, 3.3, 3.4, 3.5, 3.6, 3.8, 3.9, 3.b

Investment Rationale and Growth Potential

Pharmaceuticals are of great importance for the health and well-being of mankind. Therefore, pharmaceuticals are a large and growing market. Global sales have increased from about 400 billion USD in 2001 to 1'400 billion USD in 2021. In 2021, revenues increased even further as #PharmaManufacturing benefited from increasing demand for Covid-19 remedies. With continued population growth and the increasing risk of pandemics, #PharmaManufacturing will continue to be a welcome investment opportunity.