Accessibility through agility: Building manufacturing and access systems that deliver affordable medicines at scale
The author opines that medicine affordability cannot be achieved through manufacturing efficiency alone and true affordability depends on combining operational efficiency with strong access strategies.
Across the pharmaceutical industry, one thing is clear: being efficient doesn’t make medicines affordable on its own. Affordability & accessibility is achieved when savings from efficiencies across manufacturing and supply chain are shared with customers. Recent global disruptions like pandemic, war and supply chain issues have brought to the fore a simple reality that access must be planned, not taken for granted.
Despite years of becoming more efficient, there are still big gaps in access to medicines. In major markets, generic medicines make up nearly 90 per cent of prescriptions. But in low- and middle-income countries, essential generics are still not widely available, averaging below 70 per cent. In some regions, patients have to pay days’ wages for basic treatments. This is not just due to manufacturing costs; however it also depends on the accessibility that leads to pricing outcomes.
Leading manufacturers globally now view affordability as an outcome of a broader healthcare ecosystem rather than a pricing outcome. Accessibility is a continued effort towards efficient procurement, manufacturing and distribution.
They use tiered-pricing models that match the ability to pay, pooled procurement through governments and multilateral agencies, and partnerships that reduce last-mile friction.
When all of these become effective, manufacturers would be able to predict the demand and plan accordingly to ensure costs are under control.
Access strategies only work when they are supported by strong operations. This is where manufacturing agility becomes helpful. Industry experience has shown that flexible manufacturing capacity creates the space needed to keep access commitments over time.
Few key capabilities build agile operations
Multi-product manufacturing is a key capability to build agile operations. Modular lines make it quicker to switch between products, reduce capital costs per product, and allow response to demand changes. Lowering costs and supporting access models.
Diversified manufacturing networks, another key element in agile operations has been a critical capability during crises ensuring there are no disruptions.
Technology and digitalization are becoming strategic capabilities in pharmaceutical manufacturing ensuring real-time visibility, maintenance and demand sensing, reducing waste, compressing release timelines, and improving service levels. More importantly digital traceability which strengthens regulatory confidence and clinician trust.
Economic reinforcement happens when affordability and accessibility are incorporated at the planning stage. Agile production systems support variable pricing models, while demand visibility helps in production and procurement planning ensuring consistent availability, building confidence amongst patients, doctors and purchasers.
While high capital investment, regulatory control and dependence on limited API sources remain key challenges. Addressing these requires policy alignment, government support, financing and API diversification.
For the pharmaceutical industry efficiency clearly is the biggest competitive advantage, while ensuring operational gains paveway for better patient access.Companies that align manufacturing strategy with access goals will be better positioned to deliver reliable, affordable medicines at scale.
