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Pharmaceutical firms must prioritize AI integration, supply resilience to thrive in 2026: Nikkhil Masurkar
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Shardul Nautiyal, Mumbai
December 26 , 2025
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Pharmaceutical companies must prioritize artificial intelligence (AI) integration, supply resilience, and patient-centric models to thrive in 2026. Firms that build in-house AI talent, clean data pipelines, and strong governance now will gain a significant edge in speed, cost and innovation, according to Nikkhil K Masurkar, CEO, Entod Pharmaceuticals.
The year 2025 tested the pharma and healthcare sectors with supply disruptions, AI disruptions, and regulatory shifts, yet delivered breakthroughs in precision medicine and resilient chains.
Masurkar further added that India's market is hitting USD 50 billion projections amid production linked incentive (PLI)-driven exports doubling year on year. The key takeaway of this year was that agility trumps scale. Last year, India further strengthened its position as a pharmaceutical innovation and manufacturing hub, driven by advances in research, differentiated formulations, and increasing adoption of AI across quality and manufacturing systems. The year also marked an inflection point for Indian pharma, transitioning from volume-led scale to research-driven innovation amid regulatory reforms, tech adoption, and rising lifestyle diseases like metabolic disorders.
India made significant regulatory strides in 2025 with the revised Schedule M and the launch of the Pharmaceuticals Research & Innovation Promotion (PRIP) scheme, both aimed at elevating the pharma sector's global standing. The updated Schedule M introduces stricter Good Manufacturing Practices (GMP), emphasizing enhanced hygiene protocols, rigorous validation processes, and comprehensive documentation requirements. This helps MSMEs align with international quality benchmarks, reducing export rejections by an estimated 20-30% and building trust with global buyers. Parallel enforcement against Not of Standard Quality (NSQ) medicines signalled non-negotiable patient safety, sustaining trust amid stricter Schedule M GMP upgrades.
The PRIP scheme provides targeted support through grants of up to Rs. 50 crore per project, alongside tax incentives, to fuel R&D in biotech and APIs among smaller firms. It is projected to boost small-firm innovation by 40% by funding over 500 projects in the coming years.
“Moreover, the success of 50 new PLI-backed greenfield plants demonstrated the power of localization, slashing lead times by 25% and proving that regional manufacturing can deliver both speed and stability. Together, these initiatives are expected to lower compliance costs by around 15% for MSMEs while raising overall quality standards. This positions India even more strongly as a generic powerhouse, already meeting 40% of US demand,” Masurkar informed.
In 2025, AI accelerated innovation and delivered impressive results across diagnostics and trials. Looking ahead, one can expect increasing integration of AI across the entire value chain, from early drug discovery and trial design to sales forecasting, pharmacovigilance, and personalized doctor-patient interactions. “By doing so, companies can spot new molecular targets faster, predict trial success more reliably, fine-tune protocols to reduce failures, and tailor outreach for better engagement and outcomes. However, to increase efficiency and ensure the safety of data, strong ethical frameworks need to be put into place to manage risks like data bias and privacy,” Masurkar explained.
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