Pharma industry’s costly transition to sustainability can be made lucrative
sustainability can be a costly affair, leading to an increase in the prices of medicines. But, say experts, it is more important to consider the long-term benefits of such exercises.
“While the initial investment might be higher, embracing eco-friendly practices can lead to reduced energy consumption, waste reduction, and increased operational efficiency over time, ultimately resulting in cost savings,” says Nikkhil K Masurkar, CEO, Entod Pharmaceuticals. “Moreover, the global regulatory landscape and market trends increasingly emphasise sustainability, making it crucial for Indian pharma companies to align with these expectations to remain competitive in international markets and avoid potential market access barriers.”
Industry stakeholders say collaborative initiatives with industry associations, government agencies and research institutions can help in sharing of knowledge and resources, minimising the financial burden.
“As consumer awareness and demand for sustainable products grow, companies demonstrating environmental responsibility could gain a competitive edge, potentially justifying a measured increase in medicine prices for environmentally conscious consumers. Governments and international organisations may also offer financial incentives or subsidies to support the adoption of eco-friendly practices, helping to mitigate transition costs.
