Now that we rely on AI, worldwide supply networks and live data, people in the pharmaceutical industry are moving away from seeing the Scientist-CEO as the typical leader. Executives in the pharmaceutical sector today are expected to be expert in both technology, politics, digital topics and quick decision making.
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From the Small Things to Big Data: The Rise of Machine Learning
Many pharma companies are now operating digitally as much as they do scientifically. Research from Deloitte shows that half of the companies in the life sciences sector are investing heavily in data science, with a similar number of pharma executives believing that future success depends on data analytics and AI.
Today, leaders in science must have the ability to lead along with scientific knowledge. According to real-world data, advances in AI and predictive diagnostics, leaders should be able to manage data platforms, follow data privacy rules such as GDPR and make use of algorithms.
ZS estimates that AI spending for healthcare will rise to $188 billion in 2030, up 37% from the 2022 rate. The increase in the number of drugs is a result of the industry using AI to drive both innovation and individual patient care.
According to the 2023 report from McKinsey titled “Pharma’s Digital Rx: Solving the Innovation Equation,” more businesses appoint Chief Digital and Chief AI Officers as a key approach to achieving growth. McKinsey points out that companies using digital technologies in the pharmaceutical sector do RandD five times more efficiently than the rest.
How geopolitics affects the pharmaceutical industry
Pharmaceutical supply chains have proven to be fragile, as illustrated by the pandemic, war in Ukraine and new trade developments. Executives need to have expert knowledge about drugs and must also understand trade, key diplomatic strategies and the rules in other countries.
The report from EY also points out that 79% of pharma company leaders consider geopolitical instability a serious threat to their business plan. The same document also reports that boards are often selecting CEOs and top managers with knowledge in international law, public policies or diplomacy to address localised rules for production, growing nationalism in regulations and greater reliance on specific resources.
As the largest global vaccine maker, the Serum Institute of India demonstrates how to use this skill well. Throughout the COVID-19 pandemic, its management needed to handle negotiations with other countries globally, enforce trade bans and build partnerships with private companies, all in support of both business interests and addressing the pandemic.
Choice Stance: Overcoming Leadership in Isolation
Today, pharma leaders need to bring together teams from different areas because their jobs are very complex.
The research shows that 72% of leaders in the life sciences believe better results will come if data scientists, regulators, clinicians and technologists are all encouraged to align under a shared vision.
A leader in technology must learn and work with various languages such as laboratory terms, code, ethics and user concerns. Leaders of scientific companies should focus on relating concepts to the wider world, not only on leading research.
A New Approach: From Treatment to Prevention
There is also a trend toward preventive care which is transforming how leaders act because of rising healthcare expenses and an increase in diseases caused by lifestyles, pharma companies are now choosing to focus on preventative care and early treatments.
Deloitte Centre for Health Solutions states that preventive healthcare may bring economic value of over $1 trillion across the globe by 2030, most of which is expected to come from digital monitoring, new wearables and predicting illnesses. Due to this, pharma firms now shift from making one-off medications to involving patients over longer periods of time.
Health companies are now focusing on hiring CEOs with knowledge of digital health, engaging customers and understanding behaviour. It is not enough to only create a molecule and work on getting it approved, as we used to do.
Changing the Role of the C-Suite: Why the Hybrid Leader?
The combination of digital change, individualised medical services and politics is forming a new style of leaders. McKinsey refers to this new breed as “hybrid leaders” executives equally comfortable in scientific discussions, digital design reviews, ESG boardrooms, and international trade summits.
This is visible through the high-profile appointments many Big Pharma companies have made. Novartis and Roche are working with experienced leaders in both AI and the field of public policy. Likewise, Sun Pharma and Biocon from India are focusing more on digital strategies and approaches that benefit patients.
According to EY’s Future of Work in Pharma 2024 report, leadership responsibilities may shift, starting from CXOs stewarding areas focused on patients, technology and sustainability instead of just having one person as CEO. Technology company leaders still rely on their technical skills, but things are changing.
There is no indication that the Scientist-CEO should step down just yet. In fact, it marks a new stage in what the position involves. Trust among regulatory bodies, academic groups and R&D teams can be solidified mainly through scientific rigour. Still, we should balance this with being flexible, curious and open to seeing the whole of the system.
According to KPMG, nearly two-thirds of drug-making board members want their next CEO to be skilled in AI, ESG issues and developing markets.
Proposing a Change in Leadership for the Pharma Everyone Admires
The role of pharmaceutical leaders is being transformed without much noise. We can expect the CEOs of tomorrow to be more than makers of molecules; they will also guide the ecosystem, master the digital world and set global strategies.
The emerging leader in pharma keeps the science close and extends the definition of science-focused leadership. They use more than one language in computer science and chemistry, strategy and statistics, ethics and economics.
The industry’s new role in the connection of AI, cost, openness and support will guide the future of pharmaceutical products and achievements.
