High Costs, Low Margins, and Regulatory Hurdles Hinder Pharma’s Adoption of Advanced Manufacturing Technologies

Benchmark Banner Ad

 

The ongoing drug shortage crisis in the U.S. underscores a critical need for innovation in pharmaceutical manufacturing. As manufacturing issues, outdated technologies, and geopolitical risks contribute to shortages that impact patient care and elevate healthcare costs, the introduction of Advanced Manufacturing Technologies (AMTs) offers a beacon of hope. AMT technologies promise to enhance quality control and reduce production downtime, yet their adoption in generic drug production remains low despite obvious benefits.

Why is the pharmaceutical industry slow to adopt technologies that could revolutionize drug availability and cost?

Mike Tracy, a C-Level Healthcare Operations Strategist, dives into the complexities of integrating Advanced Manufacturing Technologies in drug production. Mike points out that while AMTs can drastically reduce bottlenecks in drug production, the significant initial investment and stringent regulatory landscape pose substantial hurdles.

“Every AMT has a high startup cost and generic drugs have very razor-thin margins to begin with. We’re not talking about a new drug that’s not already out in the market where you’re going to have a high margin and it makes sense to invest millions,” Tracy explains.

Article written by Sonia Gossai

Follow us on social media for the latest updates in B2B!

Image

Latest

transportation management
Transportation Management Systems Don’t Compete With Carriers, Brokers, or Shippers — They Align Them
February 10, 2026

Transportation management systems are undergoing a quiet but consequential shift. Once viewed primarily as tools for tracking loads and storing paperwork, modern TMS platforms are increasingly expected to function as the operational backbone of logistics organizations. As freight volumes continue to fluctuate, margins remain tight, and supply chains rely on a growing mix of…

Read More
AI adoption strategy
Five by Five Leadership: Why Purpose, Warmth, and Clarity Matter More Than Ever at Work
February 10, 2026

For the first time in history, workplaces now span five generations, forcing leaders to rethink long-standing assumptions about motivation, communication, and career growth. As Gen Z enters the workforce, they bring expectations shaped by a desire for meaningful work, clear development paths, and work-life balance—rather than traditional, one-size-fits-all career ladders. In an era marked…

Read More
Experiential
Scaling Experiential Learning at Slippery Rock University with Dr. John Rindy
February 9, 2026

Regional public universities are being asked to do more with fewer students, fewer dollars, and less margin for error—making student persistence, timely graduation, and career outcomes central institutional concerns. Under mounting enrollment pressure and a shifting labor market, experiential learning has moved from a “nice to have” to a strategic imperative. Research consistently shows…

Read More
data center workforce
The Next Data Center Bottleneck Isn’t Power or Cooling — It’s People: The Data Center Workforce
February 8, 2026

With the rapid rise of AI workloads, data centers are being built with higher power density, stricter reliability expectations, and cooling technologies that are evolving faster than most teams can adapt. As a result, these facilities aren’t just getting bigger—they’re becoming harder to operate, harder to staff, and far less forgiving when something goes…

Read More