PHARMA\\\


The global pharmaceutical market is still growing, says Eric ten Kate, vice president global life science, at freight forwarder, Agility. However, growth has slowed


from the levels seen over the past fi ve years. The IQVIA Institute for Human Data Science is forecasting in its January 2019 report that the global pharmaceutical market will grow at 3-5% over the coming fi ve years. The growth is predominantly


coming from the US and the ‘Pharmerging’ economies, but even in the latter, it is slowing down due to economic growth factors and slower healthcare expansion. China, Brazil and India currently have the


greatest medicine


spending within the Pharmerging markets, while Turkey, Egypt and Pakistan are forecast to have the greatest growth up to 2023 The growth witnessed in the these markets can be largely attributed to demographics (growing and aging populations),


urbanization and


better access to healthcare. Kate says: “We are winning


the fi ght against communicable diseases, yet non-communicable diseases continue to grow. Challenges include pricing policies, sales losses to generics and biosimilars and exclusivity loss in developed markets. In the developed markets, growth is expected to come from new, specialty products. Meanwhile, an increasing


number of countries are sliding into lockdown mode. Social life as we know it has stopped. Whole industries and product supplies are coming to a halt. The coronavirus has meant that global cargo capacity reductions are not only leading to an increase in prices but also aff ecting the supply of goods across the world. The pharmaceutical supply chain might soon be in short supply, mainly due to its long and global character.” On the supply side, this has been caused by companies protecting their staff that led to lower output, local governments securing domestic supply fi rst and the transportation aspects due to capacity constraints on all modes, including border closures. On the demand side, this has


been caused by the stocking up of products. Safety stocks are increased as demand surges, and this is not only for products related to the virus but on a wider scale too.


Issue 3 2020 - Freight Business Journal


Agility joins battle against the scourges


In order to prevent short supply from stakeholders - governments, pharmaceutical manufacturers and logistic companies - jointly need to ensure continuity of vital logistic corridors between countries, Kate says. He says: “We expect this


challenging situation to continue until deep into 2020 with more and more countries being aff ected in the weeks to come. The impact on and recovery of China is a positive sign, and the developments in North America and Europe can hopefully follow the same cycle. However, it remains to be seen what the impact will be on Africa. Overall, challenging times lie ahead for logistics and freight operations around the globe, requiring an agile and collaborative approach.” The pharma market is growing


everywhere, in some places more than others. “We see signifi cant growth predominantly in emerging markets. On a product level, the growth in Biotech is expected to contribute signifi cantly. In 2019, biotech was estimated to represent 27% of the global market, and by 2024, 31%.” (Deloitte, 2019 Global Life Sciences Outlook). The Life Sciences market is very


diverse and the range of products varies widely within that - from class 1 medical devices to highly specialized drugs, manufacturing inputs, nutritionals, clinical trials and everything in between. This makes operating in this industry’s supply chain a complex task, as each of the logistics solutions need to be tailored around the product characteristics, in order to deliver a compliant, high quality, but also cost-eff ective results. The rapid shiſt to new markets,


more challenging manufacturing geographies, the development of more complex and sensitive pharmaceuticals and the tide of strict regulations introduced by national and global bodies, has led to a need for greater eff orts around ensuring product integrity, with increased demands on all stakeholders in the pharmaceutical space. If not managed well, these challenges could have an eff ect on cost increase, waste and ineffi ciency in the pharmaceutical supply chain, but most importantly could ultimately increase the risk of the loss of life-saving products. From a technology point of


view, the focus in the Life Sciences industry remains on product integrity, speed to market and price,


MM20 exhibitor ad 210x273.indd 1 20/04/2020 12:38


so technologies to support visibility and traceability in the end-to-end supply chain are consistently sought


for and in development.


Technology is also expected to play a more important role in pharmaceutical supply chains. “Kate says: “As price pressure


builds up, speed to market is ever more important and the role of the consumer is changing rapidly. Technologies in the Life Sciences space, such as artifi cial intelligence, internet of things, robotic automation, machine learning or


sets, the pace of this transformation may lag compared to other industries.” Agility is in the process of


building up a global GDP compliant network with certifi ed centres of excellence, specifi cally tailored around the essentials of handling Life Sciences products. The stations require undergoing


blockchain will no doubt lead to the digital transformation of the industry, but given the complex and sensitive nature of the data


and passing independent cGDP certifi cation, but more importantly, have an implemented GDP quality management system and have a nominated quality


19


manager, focusing solely on good distribution practices. Today, the modal discussion in


pharmaceutical traffi c continues to be a tough balancing act between cost, risk and speed to market. The mode of preference depends on all of these variables. Kate concluded:


“Generally speaking,


we have witnessed a continued shiſt to ocean freight at the expense of airfreight, mainly for lower value medicine. For short shelf life products, airfreight remains the preferred option.”


Multimodal 2020 celebrates 13 years of placing shippers, retailers, wholesalers, importers and exporters in front of exhibitors who offer the latest logistics and supply chain solutions


Attendees in 2019 9029 49%


had a logistics spend of over £10M p/a


32% 13% 20%


with spend of £5-£10M p/a


in Procurement 33%


Chairman / CEO / MD level


Shippers / manufacturers / retailers


NEW DATES


New attractions for 2020:


VIP matching programme


• Match-making service to connect exhibitors with shippers • Careers focus on day 3 to address the skills gap, recruitment, re/upskilling and education • BIFA Village offering pod exhibiting opportunities from just £950 • Seminars with specific content to the issues of each genre of shipper


Contact us now for exhibiting and sponsorship opportunities www.multimodal.org.uk | +44 (0)20 7384 7760 | multimodal@clarionevents.com


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