< PreviousFINANCE AND INVESTMENT 20 Pharma Business International www.pbiforum.net Less savvy investors or those new to how the pharmaceutical industry worked may have been drawn in by the promise of easy returns – and received them given 2021 was an unusual year – and then committed too heavily into 2022, hoping to reclaim the magic and have a repeat performance. One of the biggest problems is investors seeing too much “hype” in the increased emergence of IPOs and SPACs to the market and believing this would continue. In many cases these were systematic of trends, and not realistic businesses, and the biggest winners of 2022 have been the start-ups who raised money in 2021, as it’s expected that investment may falter in 2023 as these fair-weather investors freshly burned by the market return to their more familiar stomping grounds. That’s not to say investment won’t exist – it always will – but there is likely to be a more cautious rebound into 2023 that will see investors focusing on existing companies with actionable intellectual property, or on mergers from larger pharma giants, rather than new start-ups. In fact, 2023 may be one of the most difficult years on record to be a start-up in the pharma industry, though that won’t stop some from making it through on clever fundraising and merit. With venture capitalists especially, 2023 is expected to be a pessimistic scenario, at least in the pharma industry. Many of the start-ups from 2022 will be struggling to gather the funds they need to keep running and will go under, and funds are likely to be targeted toward © stock.adobe.com/Egor 18-21.qxp_Layout 1 08/12/2022 11:10 Page 3Pharma Business International 21 www.pbiforum.net FINANCE AND INVESTMENT existing portfolios rather than pipeline drugs. There are likely to be more familiar and experienced investors and VCs taking a more long-term approach, but the competition to attract these investors will be heightened and fierce, meaning that while 2023 could be a good time for savvy investors, it may not be as opportune a time for those desperate to raise money. In the face of this, companies who need to raise money in 2023 will want to get a start early on doing just that and take every opportunity available to them. It will be no good starting later in the year if 2023 is expected to be difficult. Pushing the portfolio will be the goal as investors are going to be looking for safer options as many economies tumble into recession, and the bigger funding groups will become increasingly risk averse. Given the poor recruitment market at the moment and the shortage of skilled workers, it’s also more important than ever to optimise the workforce and ensure companies are getting as much out of them as is possible. Bolstering numbers will be challenging – and likely expensive – which will only make the investment scenario worse. It might be time to look at making the most of what you have, rather than looking to expand. Of course, with high risks can come high rewards, but that is a consideration to be had given the particulars of any one business, their pipeline, and their portfolio, and no one piece of advice will ring true there. © stock.adobe.com/Alex_Traksel 18-21.qxp_Layout 1 08/12/2022 11:10 Page 4DEPOSITORS AND FILLING 22 Pharma Business International www.pbiforum.net © stock.adobe.com/wacomka Accurate measurements Accurate measurements 22-25.qxp_Layout 1 08/12/2022 11:11 Page 1Pharma Business International 23 www.pbiforum.net DEPOSITORS AND FILLING T hough depositors and filling machines carry out slightly different functions, they are each used for dosing or dispensing an exact amount of a mixture onto a conveyer or surface, or into a container. Most depositors are simple machines by design, thanks to their individual function, but it is still possible to customise them to suit any purpose or production line by size and level of output. A micro depositor is the smallest available, bench mounted and easily portable, and able to have its place in any size of factory. They can also be fully or semi-automatic, depending on whether they’ll be used with or without a conveyor, but will only handle deposits in small volumes. Levelling up a step from there, a tabletop depositor will have many of the same design features but becomes more useful for successive runs of short batches. As these machines get to the upper levels of size and cost, however, they grow to be of use only to medium or large scale factory operations. With the right amount of space available on the production floor, further conveyors, rotary pot machines or FFS (form, fill and seal) elements can be added on, sometimes Accurate measurement, efficient filling and maximum hygiene all add pressure to the depositors and filling sector, and there are plenty of options available to suit any size of operation. 24 Á 22-25.qxp_Layout 1 08/12/2022 11:11 Page 2DEPOSITORS AND FILLING 24 Pharma Business International www.pbiforum.net for use in tandem with a larger self-contained hopper, as desired for maximum productivity. For further customisation when depositing requirements are varied, more bespoke designs can be brought in. A pillar lift depositor employs a telescopic lift for adjusting the nozzle height when filling multiple sizes of container, ensuring accuracy and hygiene with every batch run. Every specificity of function can be accounted for. In comparison to depositors, filling machines have a wider variety of applications. Just a few container types that need filling machines for accuracy and quality assurance typically involve bottled medicines. The dosing of pharmaceutical products can be achieved by several means, using a variety of machines with their own method and function. They can be floor standing or portable and, like depositors, as compact or large as needed for any production line. Depending on factory size, output and efficiency can be optimised by arranging filling heads and the best way for a line, whether on a rotary filler, or in a row for linear filling. Either option can dispense a range of ingredients – including fine powders with the correct auger system – into a multitude of different container types and can come available with electric and mechanical interfaces. The topic of form fill seal machines was glossed over earlier as an add-on alongside depositors, but these are more than just an optional extra in many fast-paced factories, capable of forming a package into a shape suitable for filling, then dosing out ingredients and sealing as an all- in-one unit. Available in vertical (VFFS) and horizontal (HFFS) types, the latter is used for items that suit being produced and stored horizontally, such as sachets, blister packs and flow- wrapped items. FFS machines work by dispensing packaging from a roll, before being shaped and closed on all sides except the designated opening. Each pack is then filled, before the opening is securely sealed for easy transportation and distribution, while also maintaining high levels of hygiene. These systems can be complex and sophisticated, but user-friendly computer interfaces make control settings as simple as possible and keep production going at a fast rate. Speed and flow are what FFS machines are designed to facilitate in a production process, being an important part of high-demand sectors like over-the-counter pharmaceuticals, where rapid changeover between items can be crucial. This type of machine is also versatile for factories producing a range of product types, enabling the quickest possible shift between packaging formats. 22-25.qxp_Layout 1 08/12/2022 11:11 Page 3Pharma Business International 25 www.pbiforum.net DEPOSITORS AND FILLING © stock.adobe.com/Bill Gallery 22-25.qxp_Layout 1 08/12/2022 11:11 Page 4PROCESSING AND AUTOMATION 26 Pharma Business International www.pbiforum.net More than just a machine 26-29.qxp_Layout 1 08/12/2022 11:11 Page 1Pharma Business International 27 www.pbiforum.net PROCESSING AND AUTOMATION Automation is about more than replacing human workers with machines – it is about achieving more than humans ever could and creating new opportunities for the company because of it. A s companies struggle to get to grasp with labour shortages, heightened demand of products and the challenges the industry faced during the COVID-19 pandemic and lockdown, it should come as no surprise that the process control and automation industry reaped the benefits. Indeed, pharma has a good excuse to rely on automation more than many other sectors, as one of the major arguments detractors use is that it takes away jobs from people – but the human element needs to be limited in pharmaceutical manufacturing for hygiene reasons. So, the case is simple and everything is automated, right? Wrong. Automation is not a new term but it’s still a subject that is so often misunderstood by companies. It is a constantly evolving phenomenon that needs constant work to stay at the head of the game, but also one which doesn’t always make that obvious. An automated line will continue to work even if it is inefficient, and it will look for all intents and purposes like it’s doing it well. In truth, it probably is doing it better than humans could, but it might not be 28 Á © stock.adobe.com/Mike Mareen 26-29.qxp_Layout 1 08/12/2022 11:12 Page 2PROCESSING AND AUTOMATION 28 Pharma Business International www.pbiforum.net operating as effectively as it could be. In short, while the move toward automation is obvious, the optimisation of it is anything but. There’s no one part of the pharmaceutical process that is specifically designed for automation – it is used in manufacturing, packaging, and can also be used in distribution centres and in warehouses where applicable. However, the primary focus is often on manufacturing and packaging, with the goal of optimising a factory floor to produce products faster, with a higher degree of accuracy, and with reduced risks of problems involving contaminants, hygiene and/or other issues. Quality is often less of a concern given that all products should be expected to be of heightened quality when properly automated and assuming correct control and ingredients. One of the most important methods by which to optimise automation is to understand that the process is more than just the machinery involved, and much more about the processes that tie it together. In many cases, this refers to software systems. Digital control of processes at every stage of the process allows for rapid monitoring, identification of problems and action to address such. Industry 4.0 (also known as the fourth industrial revolution) has taken too long to be adopted by many, faced in no small part by resistance from labour groups, unions, but also governments not wanting to face the losses of jobs implied by such a change. When it was first introduced, manufacturers saw Industry 4.0 only as a means of raising productivity by the number of products handled or sorted, and with a reduction in labour. What many did not realise, and which some still do not, is that it is an opportunity to invent or reinvent their offerings and strengthen their competitive position. One need only look at China, long considered a manufacturer of cheap knock-off products, rising up through automation to challenge many other economies. Proper automation also goes hand in hand with traceability, which is another such offering that companies investing in proper automation, including data transfer, can find. When products are © stock.adobe.com/unlimit3d 26-29.qxp_Layout 1 08/12/2022 11:12 Page 3Pharma Business International 29 www.pbiforum.net PROCESSING AND AUTOMATION monitored at all times through machine process, with information and serial numbers logged, any problems can be traced back through the whole system, and recalls can be issued to the specific locations the drugs went to, rather than to the entire market. Not only does this save costs involved with recalls, but it allows for quick responses that can help to alleviate concern and avoid negative coverage and scandal. For example, mix ups in hand-offs are a large disruptor, especially when drugs have specific shipping requirements. For example, many vaccines – including the COVID-19 vaccines – must be kept refrigerated at a specific temperature throughout their journey, and if this isn’t communicated, it can render a whole batch unusable. Fully integrated and automated ingredient to consumer batch tracking using barcoding, RFID tagging, or IoT temperature logging and timestamping significantly reduces the chance of these mix-ups. This carries on to a reduction in safety stock among pharmaceutical companies – as reduced errors and disruptions to a process mean less safety stock required. In 2021, in the heart of the pandemic, the pharmaceutical sector saw a staggering 71% increase in supply chain disruption. This was obviously an isolated incident due to heightened demand and a worldwide pandemic scenario, but it does highlight the risks involved, and the staggering cost of mistakes. These disruptions are far less likely to happen when a robust and optimised automation process is involved – one which specifically makes use of IoT, scanning, vision control, serialisation and more, and doesn’t just work on the barebones concept of performing the routine movements that a human operative would. When looking at automation, the focus must not only be on replacing the human element for the sake of avoiding labour costs, but on expanding the responsibilities of the machine – because a machine can multi-task and handle more than a human could. It is wasteful to only consider the requirements, when there are greater opportunities to optimise in ways that will surpass a human controller by ten times or more. © stock.adobe.com/Gorodenkoff 26-29.qxp_Layout 1 08/12/2022 11:12 Page 4Next >