by Vishal Goel

7 minutes

Connecting for Growth: The Impact of Multicity Operations on Life Sciences

Explore how multi-city collaborations in India’s life sciences sector drive growth, innovation, and patient-focused solutions.

Connecting for Growth: The Impact of Multicity Operations on Life Sciences

Geographical expansion is often a natural step for companies that are growing. This is true for the life sciences sector in India as well – in its pursuit of growth and innovation, multi-city collaborations have emerged as critical determinants of progress, allowing organizations to harness local expertise and benefits. With the life sciences and healthcare sector leveraging the power of global capability centres (GCCs) in India – led by Bengaluru, Hyderabad, Mumbai, and Delhi-NCR – multicity collaboration has become an important cog in the wheel of growth. About 20% of Healthcare & Life Sciences GCCs have their centers in 3 or more cities, playing a pivotal role in drug discovery and development process.1

Global giant Johnson & Johnson is a case in point – the company’s corporate headquarters in Mumbai oversees an array of business functions 2 while the J&J Institute in Chennai focuses on research and development through educational initiatives.3 In Hyderabad’s Genome Valley—a recognized life sciences hub—J&J undertakes critical biopharmaceutical research, benefiting from the region’s infrastructure and collaborative environment.4 5 Such strategic deployment of resources underscores its commitment to multipronged approach in advancing healthcare solutions across India. 

Inorganic multi-city collaborations between different life sciences organizations echo this approach. Biocon Biologics in Bengaluru and Eris Lifesciences in Ahmedabad have engaged in a 10-year partnership to improve patient access to biosimilars across therapeutic areas like metabolics, oncology, and critical care.6 Similarly, Chennai-based Orchid Pharma has partnered with Cipla in Mumbai to address antimicrobial resistance (AMR) by launching Cefepime-Enmetazobactam, a targeted antibiotic for complex infections.7 Such distributed partnerships in India’s life sciences sector can set healthcare innovation and accessibility in motion, cashing in on the unique capacities of each location.


Enhanced Collaboration with Relevant Stakeholders

Operating across multiple cities in the life sciences sector builds a versatile network that bolsters collaboration with institutions and specialized organizations, including universities, regulatory bodies, and research centres. This helps optimize resources and align capabilities regionally. This synergistic exchange brings scientific, clinical, and regulatory contributors together to advance life sciences solutions. The foundation of life sciences innovation has relied on partnerships between academia and industry, as exemplified by partnerships between AstraZeneca and the University of Cambridge 8 or GSK and Imperial College London 9. Such academic-industry collaboration can stimulate cutting-edge treatments while advancing innovations’ commercial viability.10

handshake

A multi-city strategy also supports collaboration across supply chain participants, such as Contract Manufacturing Organizations (CMOs) and Contract Research Organizations (CROs), allowing companies to draw on specialized local resources and infrastructure. This distributed network increases resilience and mitigates risks, ensuring a robust supply chain despite disruptions. For patients, the benefits are clear: an ecosystem capable of delivering advanced therapies while addressing biopharma’s evolving challenges. This interconnected approach reflects an industry-wide shift toward comprehensive, patient-focused solutions, marking a significant evolution in life sciences. 11 12 13 14


Operational Flexibility and Scalability

Flexibility and scalability are essential for sustaining growth and operational efficiency in any business, and life sciences are no different. Locating facilities strategically across various cities allows organizations to adjust their operations to the specific demands of each region, from research and development to production and distribution. This geographic spread enables companies to scale infrastructure with evolving scientific and commercial needs, whether by expanding lab capacities, setting up new production lines, or deploying research initiatives closer to innovation hubs. 

A distributed presence also supports workforce management by enabling access to diverse talent pools and creating adaptable workspaces that enhance engagement and productivity. Facilities tailored to employee needs, such as adaptable lab configurations and multi-purpose office spaces, attract top talent and improve retention. Specialized clusters offering shared infrastructure and proximity to academic and research institutions further pave the way for rapid scaling by reducing the time and costs associated with establishing operations. Life sciences companies can also reduce costs by leasing labs, offices, or manufacturing spaces in emerging markets or utilizing flexible, collaborative workspaces, allowing for expansion without heavy capital investments. Streamlined facilities management and digital procurement systems standardize operations across locations, simplifying expansion efforts and maintaining consistent quality. 15 16 17


Broader Intellectual Reach

With a multi-city approach, life sciences companies deepen their engagement across various regions, gaining insights into local healthcare challenges. This geographic diversity enables the development of solutions that resonate with distinct populations, building trust and supporting patient-focused innovation. Conducting research and trials across demographic groups can guide companies to improve the precision of treatments, making a greater impact.

Operating in multiple locations also opens doors to regional funding opportunities and incentives, fuelling growth while minimizing the financial risks of centralized operations. A distributed network further strengthens supply chain flexibility, allowing swift responses to disruptions and ensuring the reliable delivery of essential products. A multi-city strategy, hence, broadens a company’s reach and enhances its capability to address diverse healthcare needs responsively and effectively.

growth of a plant in a graph

As the life sciences sector grows, a multi-city portfolio enables companies to build on regional expertise and lead innovation in a complex market. With India’s pharmaceutical industry ranked third globally by volume and projected to reach USD 130 billion by 2030, the sector’s growth trajectory is clear. Multi-city collaborations across India’s 80+ pharma clusters and 10,500 manufacturing facilities position life sciences firms to benefit from this expansive ecosystem 18. Establishing diverse, interconnected operations across key cities allows companies to better navigate regulatory requirements, expand access, embrace technological advancements, and address the rising demand for specialized life sciences solutions. This approach will lead to impactful, sustainable healthcare outcomes in the years ahead.


References

1. https://ansr.com/wp-content/uploads/2024/04/State-of-Healthcare-Life-Sciences-GCCs-in-India-PDF.pdf

2. https://www.jnj.in/heritage/70-years-of-johnson-johnson-in-india

3. https://jnjinstitute.com/en-us/location/chennai-india

4. https://lifesciences.telangana.gov.in/why-telangana/ecosystem/major-industries/

5. https://mcrhrdi.gov.in/images/samriddhi/number3/1.pdf

6. https://health.economictimes.indiatimes.com/news/pharma/pharma-industry/biocon-biologics-eris-lifesciences-announce-long-term-collaboration-to-expand-patient-access-to-metabolics-oncology-critical-care-products/108497527

7. https://www.cipla.com/press-releases-statements/orchid-pharma-partners-with-cipla-to-launch-antibiotic-cefepime

8. https://www.cam.ac.uk/stories/astrazeneca

9. https://www.imperial.ac.uk/news/254134/gsk-imperial-eliminate-costly-cold-chain-storage/

10. https://pmc.ncbi.nlm.nih.gov/articles/PMC10484498/#ack1

11. https://www.labiotech.eu/opinion/innovation-life-sciences-collaboration-community/

12. https://biovoicenews.com/an-ecosystem-of-innovation-multi-sectoral-collaboration-can-be-a-force-multiplier/

13. https://www.researchgate.net/profile/John-Parker-14/publication/272356445_Collaboration_in_the_New_Life_Sciences/links/5dd09632a6fdcc7e138774b3/Collaboration-in-the-New-Life-Sciences.pdf

14. https://www.laboratoriosrubio.com/en/pharma-biotech/

15. https://ansr.com/wp-content/uploads/2024/04/State-of-Healthcare-Life-Sciences-GCCs-in-India-PDF.pdf

16. https://www.sciencedirect.com/science/article/pii/S1359644623000442#:~:text=Being%20global%2C%20a%20biotech%20must,built%20at%20the%20global%20level

17. https://www.jaggaer.com/download/whitepaper/6-challenges-scalability-life-sciences

18. https://indiainvestmentgrid.gov.in/sectors/pharma-biotech-and-lifesciences

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Vishal Goel

Managing Director

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Vishal Goel

Managing Director

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