With a market size of over $1 trillion and expected to grow at 11.34% CAGR from 2021 to 2028, the pharmaceutical industry is at the peak of a digital revolution. It’s no surprise that tech giants like Amazon, Microsoft, Apple and Alphabet are looking to disrupt this industry. According to a recent report by CB Insights, these companies are utilising their expertise in data, AI and technology to bring a change in drug development and patient care.
In this article, we dive deeper into the CB Insights report and explore how these tech giants are making their mark in the pharmaceutical industry. From digital pharmacies and supply chain expertise to personalisation through IoT devices, we cover it all.
An overview of big tech’s activities in pharma by CB Insights
CB Insights’ report reveals that big tech companies, including Amazon, Microsoft, Apple and Alphabet, are capitalising on the digital transformation of the pharmaceutical industry.
Alphabet led big techs in pharma investments, with 20 investments, followed by Microsoft with four investments. While Google Ventures (GV) was the most active big tech venture arm in the pharma space.
While the report found big tech’s acquisition activity in the pharma industry slowdown in 2022 after a very active 2021, it also predicts that big techs will:
- Develop hardware and software solutions to capture patient data
- Discover and commercialise digital biomarkers
- Continue offering AI expertise to pharma companies
Big techs are disrupting the pharmaceutical industry—but at what cost?
The report highlights big techs making a significant impact in the pharma industry by utilising their expertise in data, AI and technology. However, their increased presence in the industry has raised concerns about data privacy and regulatory oversight. Experts say it’s crucial to address these concerns and ensure that personal health data is not used for advertising.
Despite the existing critiques surrounding big tech’s involvement in the healthcare industry, the report highlights their potential to revolutionise it. Here’s what big techs are doing in the pharma space:
Amazon’s pharmaceutical industry disruption: Digital pharmacy, supply chain and IoT
Amazon is making big moves in the pharmaceutical industry with its innovative solutions in digital pharmacy, supply chain expertise and personalisation through IoT devices and data. It has made several strategic acquisitions and partnerships to foray into the sector.
The acquisition of PillPack, a digital pharmacy, has revolutionised the customer experience for ordering and receiving medications.
With One Medical, a digital health clinic, Amazon is taking steps to bring healthcare services closer to customers.
Its partnerships with top players like Novartis and Pfizer have allowed it to digitise pharmaceutical manufacturing, supply chain and delivery operations, resulting in cost savings and improved delivery times.
Amazon is investing in logistics and automation startups—Soft Robotics, Attabotics, and Project44—to improve its supply chain capabilities.
The market dominance of its smart speaker, Alexa, gives Amazon a head start in remote patient monitoring.
The partnership with Cerner and Nurx enables Amazon to use healthcare data to develop better drugs and pharmaceutical services.
Microsoft’s impact on pharma industry: SaaS, interoperability and drug discovery
Microsoft is making waves in the pharmaceutical industry with a clear focus on—software-as-a-service (SaaS), interoperability, and drug discovery. Through strategic acquisitions and partnerships, it is leveraging its expertise in AI and cloud technology to make managing healthcare operations more convenient and efficient.
By acquiring Nuance and partnering with companies such as CMR Surgical and SAS (Statistical Analysis System), Microsoft is helping healthcare organisations access the latest in AI and cloud technology.
It is revolutionising healthcare interoperability by investing in startups such as CMR Surgical, Rescale and Allscripts (Veradigm) to simplify storing and accessing data, leading to improved patient care and research.
It has partnered with industry leaders—Novo Nordisk, Novartis and UCB Pharma—to automate information analysis and create AI innovation labs for drug research and development. It is even developing an oral antiviral for COVID-19.
Apple’s pharmaceutical industry disruption: Innovations in hardware, biomarkers and ecosystem
Apple is making big moves by focusing on three main areas—building hardware to collect health data, creating digital biomarkers and building a healthcare software ecosystem.
It is leveraging its hardware capabilities, particularly with the Apple Watch, to collect more patient data. The company has partnered with Butterfly Network, AliveCor and Binah.ai to enable health measurements with its watch. Through NIH-funded studies, it is testing Apple Watch’s ability to prevent strokes and limit blood thinners.
Collaborating with academia and pharmaceutical companies like Biogen, UCLA, Eli Lilly and Evidation, Apple is turning patient data into new digital biomarkers for cognitive health, depression and Alzheimer’s studies.
Apple aims to provide an ecosystem for better health management and pharma research with its open-source framework—ResearchKit, CareKit and HealthKit. These tools enable consent flows, dynamic tasks, and surveys delivered through developer apps, providing access to valuable data for research studies and are being used by the University of Rochester, Duke University, Johns Hopkins and One Drop to develop health apps.
Alphabet revolutionising pharma space: Cutting-edge data, hardware and AI
With a focus on interoperability, hardware and drug discovery, Alphabet, the parent company of Google, is making it easier for healthcare organisations to access and utilise patient data, improve patient care and research and discover new drugs.
Alphabet is leading the charge in healthcare interoperability by investing in real-world data and informatics startups like DNAnexus and Verana Health. It is also acquiring health data through partnerships with organisations like Mayo Clinic and HCA Healthcare, simplifying storing and accessing data for healthcare organisations.
By investing in hardware, Alphabet is making it easy for healthcare organisations to collect and track patient data remotely, improving patient care and research. For example, the launch of the sleep platform Primasun by Verily and ResMed.
It is using AI to discover new drugs through its subsidiaries:
- Isomorphic Laboratories, a drug discovery company based on Google’s DeepMind division.
- Calico Life Sciences is partnering with companies like Terray Therapeutics and AbbVie to develop anti-ageing drugs.
Alphabet’s work in quantum computing may also amplify its drug development capabilities in the future, making it a leader in the field of drug discovery.
Big tech in pharma industry
The pharmaceutical industry is on the cusp of major changes, thanks to the growing interest of big tech companies like Amazon, Microsoft, Apple and Alphabet. These companies are investing in startups involved in various aspects of pharmaceuticals—research, development and drug delivery.
While it’s clear that these investments can benefit the industry and patients alike, their true potential is yet to be seen. One thing is certain—the future of healthcare is changing, and it’s happening really fast. With all the investments and efforts by big techs, the pharma industry will better evolve in the future.
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