Innovation and possibility

Manfred Zurkirch outlines future trends in pharmaceutical packaging.

The pharmaceutical packaging market is constantly advancing and has experienced significant growth in the past few years. However, it's important to differentiate between the growth of packaging material volumes and the equipment market. Packaging material will keep pace with the general expectation for the pharmaceutical market, which is very moderate growth of one to four percent per annum in areas such as the US and Western Europe, and about 10-15 percent per annum in the so-called pharma emerging countries such as Brazil, South Korea, China, Russia and Turkey.

One would most probably also need to distinguish between prescription (Rx), generic (Gx) and over-the-counter (OTC) drugs. For example, packaging volumes for generics will still go up but the price pressure will be fierce, whereas for Rx products this will be a bit more mitigated.

In the equipment market (such as machinery), on the other hand, it clearly depends on the machine concept. Under the current cost pressure, site consolidations and overall equipment effectiveness programmes are gaining high priority within pharma companies. This means that growth perspectives for versatile, flexible and efficient machines are still promising. We are therefore optimistic about substantially participating in the future growth of the pharma industry.

In terms of the impact of continuous innovations to pharmaceuticals themselves (powder applications, pre-filled syringes and so on), in general there is a symbiotic relationship between a packaging solution and the packaging equipment. If new, innovative products enter the market, the new packaging solution can ideally be processed on the same installed machines. We will be seeing a heavy trend towards harmonising pack styles and the upgrading and retrofitting of existing equipment to ensure the capability to pack all the new innovations coming online.

Pharmaceutical companies depend on reliable and efficient packaging to protect the quality and security of their products. There are three different fields of action to optimise quality and security for pharmaceutical products. Firstly, various features can be built into the packaging material; for instance, RFID chips, hidden printed patterns and holograms.

Secondly, there are numerous possibilities to be incorporated into the packaging solution. Ideally the packaging development department of the equipment supplier starts to discuss the requirements with the pharmaceutical company very early in the process. Depending on the company's priorities, packaging solutions can be designed that factor in physical product protection, volume (critical for cold chain products), compliance, tamper evidence and convenience requirements. Last but not least, there are elaborate control mechanisms on every packaging machine to ensure that no bad product leaves the production line. This is mainly accomplished with a sophisticated process flow on the machine, including a lot of sensors and cameras.

Future trends in pharmaceutical packaging depend heavily on the kind of drugs to be packaged and their distribution channel. For Rx drugs, I envision that due to their high value there will be more and more very small batches. Pharma companies do not want to stock these products, resulting in a large focus on quick changeover. Additionally, these products need high physical protection and small volumes because they often go into the cold chain.

For generics, I believe we will see two contradictory trends. Obviously, the intense cost pressure will continue and favour simple, cheap solutions. However, in order to continue to make money, some generics producers will differentiate themselves via an innovative and appealing packaging solution. In the realm of OTC products, we have yet again a different playing field. These packaging solutions have to be self-explanatory, attractive and, not surprisingly, large enough to be seen on the shelf. In summary, I foresee a lot of innovation in the next few years, because in general a strong competitive environment boosts innovation, to ensure survival of the fittest.

Dr. Manfred Zurkirch is Managing Director of Dividella AG, which he joined in 2006 from a leading Swiss technology group, where he was Business Unit Manager, and previously VP of Marketing and Sales. His expertise covers the capital equipment industry, and through his extensive sales activities he has an excellent knowledge of international markets.