Technological advancements have played a crucial role in the the growth of pharmaceuticals and life sciences industries. The role of technology has transformed the way drugs are discovered, developed, and delivered to patients.
Meanwhile companies like Axtria seamlessly blending information, analytics, and technology on the cloud, and help life sciences organizations gain a competitive edge to improve patient outcomes and drive business growth.
Recently, during the Pharmaceutical Management Science Association (PMSA) 2024 Global Summit in New Delhi, Financial Express.com got the opportunity to interview Jaswinder Chadha, President & CEO, Axtria and he shared various aspects of the pharmaceutical and life sciences landscape and the beneficial role of the intersection of technology and healthcare. Excerpt:
Reflecting on the over a decade-long journey of Axtria, both domestically and internationally, how would you characterize the experience thus far?
Firstly, it’s imperative to emphasize that we’ve seamlessly integrated our operations between India and the global arena since day one. Despite being headquartered in the U.S., India has always been an integral part of our operations. Over the span of approximately 14 years, our trajectory has been nothing short of remarkable, both in terms of relative and absolute growth scales.
Success begets success, as they say. It’s evident that when value creation is at the forefront, valuation inevitably follows suit. While there have been instances of companies attaining unicorn status ahead of us, our focus remains on sustainable growth—a feat we’ve consistently achieved over the past decade. Maintaining consistently high growth rates over such a prolonged period is a formidable task, underscoring the significance of a sound strategy and a compelling value proposition. We take immense pride in our ability to navigate through diverse economic landscapes, from the aftermath of the global financial crisis to the recent pandemic-induced challenges.
One such instance is the resilience we demonstrated in 2023, a year marked by widespread disruption across industries. While many prominent players faced setbacks, including layoffs and product shelving, we remained steadfast. For us, the distinction between prosperous times and adversity is negligible. This steadfastness underscores our commitment to our vision and resilience in the face of adversity. Reflecting on our journey, it’s essential to acknowledge the inevitable learning curves and occasional missteps. However, each challenge has served as a valuable lesson, contributing to our growth and refinement as an organization.
What further opportunities do you see for leveraging technology within the life sciences and pharmaceutical sector, especially considering the significant advancements and innovations we’ve witnessed in the past decade, further accelerated by the recent pandemic?
Our primary focus lies within the commercialization of the life sciences industry, a sector we believe holds greater value beyond mere drug discovery and development. Over the years, significant strides have been made in these areas, notably with the groundbreaking mapping of the human genome roughly 15 years ago. This milestone revolutionized medical understanding by providing insights into the genetic underpinnings of various diseases, particularly rare diseases. Consequently, the pace of innovation in therapies, spanning immunology, oncology, and rare diseases, has markedly accelerated in the past decade. This acceleration owes much to technological advancements, particularly in gene sequencing, which have made genetic analysis more accessible and affordable. However, our role extends beyond mere technological capabilities. Once a drug’s ideal patient profile is understood, identifying these individuals amidst the vast sea of medical data becomes akin to finding a needle in a haystack. This necessitates innovative analytics to discern the most suitable candidates for treatment, as the efficacy of a drug can vary greatly depending on the patient. The drug must reach the patient and provide better care and data analytics enables right treatment at the right time!
In the United States and much of Europe, extensive patient data exists, yet its value remains untapped without thorough analysis. We believe that by leveraging this data effectively, we can significantly improve patient outcomes, which, ultimately, is the true measure of success in our industry. Rather than focusing solely on product sales figures, our aim is to drive tangible improvements in patient health through a deeper understanding of the human genome and its implications for disease management.
Excitingly, many chronic diseases, once thought incurable, are now within reach of effective treatments. For instance, the rapid development of a COVID-19 vaccine showcased the power of innovation, transitioning from chemistry to biology and through clinical trials in record time. Such feats underscore the potential of product and technology innovation to transform healthcare outcomes, offering hope for a future where diseases like diabetes may be eradicated within the next decade.
You mentioned two crucial aspects: rare diseases and the ongoing innovations, as well as chronic diseases. Regarding chronic diseases, despite the optimism for potential cures within the next decade, recent studies indicate a continued global rise in their prevalence. Various industries, including healthcare and pharmaceuticals, are actively addressing this issue. Given this context, how do you believe data analytics can play a pivotal role in achieving the goal of mitigating and ultimately curing chronic diseases? Could you elaborate on the specific ways in which data analytics can contribute to this endeavor?
When discussing the potential cure for chronic diseases within the next decade, it’s important to note that progress is already underway. However, achieving this goal at scale remains the focus. For instance, rare diseases, where less than 5 percent of known genetic conditions currently have a cure, ongoing innovation, buoyed by government incentives, is driving promising advancements. A key application of data analytics lies in connecting the right patient with the appropriate treatment. While clinical trials may demonstrate a drug’s efficacy, its success hinges on matching it with the ideal patient profile. This entails addressing various potential hurdles, such as misdiagnoses, prescription errors, or insurance coverage issues, which can impede treatment adherence.
By leveraging data analytics, we can systematically track patients throughout their treatment journey, promptly identifying and rectifying any disruptions. This approach not only enhances patient outcomes but also reduces the overall burden of disease. For instance, consider a scenario where a family member struggles with insulin resistance due to a genetic predisposition. By employing analytics to pinpoint eligible candidates for testing and subsequent treatment, we can effectively mitigate the long-term impacts of the condition, such as weight gain and related health issues. Data analytics plays a pivotal role in aligning patients with the most suitable treatments, thereby driving improved healthcare outcomes and alleviating the societal burden of chronic diseases.
As the current financial year is ending, what strategic initiatives do you have planned for the upcoming financial year, particularly regarding your operations in the Indian market? Additionally, what are your growth projections and expectations for your business in India?
As I mentioned earlier, our focus has always been on sustained high growth. Despite a challenging market landscape in 2023, where less than 5% of healthcare companies with revenues exceeding a hundred million dollars achieved over 20% growth, we managed to grow by 25%. Looking ahead to 2024, we anticipate similar market conditions, yet we remain confident in sustaining our growth trajectory. India holds a pivotal role in our growth strategy, with 75% of our workforce based in the Country. This substantial investment underscores our belief in India’s potential to outpace the company’s average growth rate. As a testament to this commitment, we recently unveiled our new innovation and capability centre in Hyderabad.
In June 2023, Axtria announced plans to hire around a thousand people and open new centers. Could share the current status of that plan and elaborate on any further developments or expansions?
Since the announcement, we’ve successfully onboarded a net total of 700 new employees. Looking ahead, we anticipate a similar trajectory for the coming year, aiming to maintain this momentum in our hiring efforts.
In today’s landscape, sustainability and environmental consciousness are becoming increasingly significant globally. Could you elaborate on how Axtria is addressing this trend and contributing to sustainability efforts? What additional measures do you believe are necessary in this regard?
As a global company, Axtria is deeply committed to sustainability and equity. One way we contribute is through our membership in the World Economic Forum, where sustainability is a key focus for mid-sized businesses. At Axtria, we meticulously track our consumption across various aspects, such as office buildings and transportation. For instance, our Hyderabad Center is LEED certified, ensuring both efficiency and accessibility, particularly for differently-abled individuals.
Additionally, when deciding to open offices in Pune, we conducted thorough analyses and opted for two locations to reduce commute times and subsequently lower our carbon footprint. We are conscious of avoiding disposable items in our offices and have implemented initiatives like providing metro cards to employees in NCR and Delhi to discourage car usage, thus reducing parking-related carbon emissions. These efforts align with our values of sustainability and equity, reflecting our commitment to responsible corporate citizenship and environmental stewardship.
Over the past 14 to 15 years, the pharmaceutical and life sciences industries have undergone significant transformation. Could you elaborate on Axtria’s role in driving these changes, and how do you envision India progressing in alignment with your company’s development?
Our most significant contribution to the life sciences industry lies in promoting the use of analytics and software technology to enhance the efficiency and effectiveness of product commercialization. By optimizing sales and marketing strategies, we help reduce healthcare costs by minimizing inefficiencies. Our clients gauge our impact through improved cost efficiency, as tasks that once took months now take mere hours, enabling them to make informed decisions swiftly. In terms of India’s market potential, while it’s still in the development phase, there are immense opportunities to harness the solutions we’ve honed for global markets. Despite the prevailing cost-consciousness and infrastructure challenges, India’s burgeoning healthcare landscape presents a fertile ground for innovation and growth. By strategically investing in data acquisition and technology infrastructure, Indian companies can unlock the transformative power of analytics and AI, driving efficiency and competitiveness in the global arena.
While outsourcing remains a prevalent strategy for Indian companies, there’s a growing recognition of the value in building in-house capabilities. By embracing this shift and investing in domestic talent and technologies, Indian firms can position themselves as leaders in the global life sciences industry. As attitudes evolve and investments increase, India stands poised to emerge as a hub of innovation and excellence in analytics and software technology within the life sciences sector.
While discussing data, the issue of privacy naturally arises, especially in light of recent data breaches in institutions like AIIMS and ICMR. Considering India’s evolving stance on data protection, including the Data Protection Bill, how do you perceive India’s potential in effectively managing healthcare and pharmaceutical data, given its vast population and the seriousness of the data involved? Do you believe additional measures are necessary to safeguard healthcare and pharmaceutical data, considering India’s status as the world’s most populous country?
Absolutely. There are several crucial aspects to consider here. Firstly, respecting patient privacy is paramount and non-negotiable. India has rightfully followed the lead of developed nations like the United States and Europe in prioritizing patient privacy regulations. However, continual investment in information security infrastructure is essential to prevent data breaches caused by security vulnerabilities. Secondly, India holds a unique advantage in leveraging digital innovations, particularly in financial transactions with initiatives like Aadhaar and UPI. This seamless integration has significantly reduced friction in financial dealings. Similarly, there’s immense potential to apply similar digital solutions to healthcare data management, provided patients retain control over their privacy and data security remains robust.
By streamlining healthcare data access and sharing, patients can enjoy improved outcomes while reducing healthcare costs. For instance, consider the scenario where a patient undergoes various tests at different healthcare providers without data sharing. This often leads to redundant tests and increased costs. However, with seamless access to comprehensive patient records, healthcare providers can make more informed decisions, thereby enhancing efficiency and reducing expenses.
When considering industry performance, particularly in the life sciences and pharmaceutical sectors, could you provide insights into the overall performance during 2023 across various aspects? Additionally, what are your expectations for the industry in 2024?
In 2023, the performance of the life sciences and pharmaceutical industry was marked by robust innovation, which serves as the primary engine of industry growth. It’s important to note that not every company experienced equal success, particularly those facing revenue declines due to patent expirations. The United States stands as the epicenter of innovation within the life sciences industry, with six countries collectively producing over 98% of new molecules worldwide. Despite this, over 95% of prescriptions filled in the United States are generics, underscoring their pivotal role in driving down costs.
When assessing industry performance, I gauge it by the pace of innovation and the iroduction of new products, recognizing their critical importance. Despite claims that we’ve moved beyond the era of blockbusters, medications like GLP-1 remain highly impactful. In 2023, GLP-1 sales in the United States alone amounted to nearly $20 billion, a figure projected to soar to $100-300 billion in the next six years. Overall, both the financial and business performance of the industry remain robust, driven primarily by ongoing innovation efforts.
What upcoming plans can you highlight for your organization?
Our focus moving forward is to sustain the growth trajectory we’ve maintained over the past three, five, or even ten years. This entails ongoing investments in new products, capabilities, and expansion through the establishment of new centers. We remain committed to fostering a growth mindset, prioritizing expansion and innovation over conservatism or immediate profitability.
To achieve this growth, what are your business expectations from the India market, and what additional measures do you foresee implementing?
For us, India primarily serves as an export market rather than a source of domestic billing. Many Indian multinational corporations utilize our software and analytics services. India is pivotal to our operations as it houses our software development and analytics teams. The primary driver of our growth in India is talent. The quality and scale of talent available here are unmatched globally, even surpassing that of the United States. Over the past year, the technology and analytics job market has softened, with major tech, consulting, and software firms scaling back on recruitment. This has made talent acquisition significantly easier for us compared to previous years, such as in 2021 and 2022. We anticipate this trend to continue into 2024.
Given your insight into the growth, challenges, and future trends within the industry, what key challenges do you perceive in India’s life sciences, pharmaceutical, and healthcare sectors?Also, considering India’s stature as a global pharmaceutical hub and a leading talent provider, what measures do you believe are necessary to address these challenges? Additionally, how would you assess the current status of data analytics in India compared to the rest of the world?
If you look at Asian countries that have excelled in various industries, such as Taiwan, South Korea, and China, it becomes evident that a pivot from prioritizing value to emphasizing quality is crucial for sustained success. India, thus far, has predominantly focused on providing value. However, to truly stand out on a global scale, India must shift its focus towards quality. For instance, Taiwan is renowned for producing the best semiconductors globally, while China leads in manufacturing prowess. India must identify areas where it can excel and strive to become the best in the world. I believe that data analytics presents one such opportunity. India has the potential to lead in analytics, providing solutions unmatched by any other nation.
