Supply chain & logistics What’s at stake on the cold chain?


It’s not just Covid-19 vaccines that rely on companies that provide cold chain storage for safe transport. Treatments for diabetes, rheumatoid arthritis, cancer and Crohn’s disease are other examples of biologics that are especially sensitive to temperature changes and other common disruptions during air transport, such as vibration. In a recent article featured on online start-up focused magazine Maddyness, SkyCell CEO Richard Ettl writes “The pharmaceutical industry has historically suffered failure rates of between two and 12% per shipment depending on the region and technology used. Putting that into perspective, if a shipment of 10,000 diabetes vials was shipped with an accepted failure rate of 12%, then 1,200 vials would be lost.”


Ettle argues that if we consider this statistic at scale, the wastage in the industry prevents millions, if not billions of medicines from reaching those who need them. In monetary terms, he cites an IATA report that found the pharmaceutical industry lost $34.1bn through failures in temperature control logistics. This figure aligns with other reports in the industry that for some time now have placed the annual cost of failures at $35bn.


Management Solution (SCSM) uses network modelling to offer shippers the greenest routes available. More broadly, supply chain insiders are experimenting with wool and other reusable packaging materials. Yet in a sector where relative emissions are 55% higher than in the automotive industry, there’s clearly much to be done.


Supplying answers


They look, at first glance, like regular drug containers – unremarkable cubes, with stencilled maps of the world on their side, and red ‘handle with care’ signs near the top. But look inside and it’s clear that the SkyCell is different. A so-called ‘hybrid’ container, this platform balances technology and robustness to offer, according to its website, “steady protection under extreme conditions and on long journeys”. And though the technology is still relatively new, Turney nonetheless seems excited about the SkyCell’s potential. She describes the “disruptive opportunity” it offers, adding that companies seem “very keen” to invest in it.


“We’ve invested more and more money into final drug products – so obviously want to get those medicines to hospitals and patients.”


Patricia Turney 27.85%


The CAGR of complex gene therapies, soon to be worth


$1.2bn globally. Globe Newswire


36


But beyond the headline excitement, what can the SkyCell, developed by a Swiss company of the same name, actually do? Fundamental is its ability to recharge independently – without the need for mechanical components like wires or removable batteries. Clearly, that lessens the risk of Massachusetts-style fiascos. More than that, it means sensitive drugs can stay out in extreme conditions for longer than they can in traditional containers. In 2020, for instance, a shipment of 56 hybrid containers was left out on an Indian runway after its


transfer flight was suddenly cancelled. Despite outside temperatures of 40°C, the medications inside were kept cool – because they’d automatically charged hours earlier. Given up to 50% of drugs are lost due to similar faults in the supply chain, that can only be a good thing. Even better, SkyCell has expanded on the old passive model to create a ‘double-door’ insulation system that protects pharmaceuticals from hot and cold weathers – ensuring drugs can hop between climates undamaged. Aside from Turney’s enthusiasm, there’s evidence the SkyCell is quickly gaining an appreciative audience. In October 2021, for example, it raised $35m in new funding – on top of the $62m it secured in 2020. And though the company is coy about its precise client list, it recently announced partnerships with “the majority of the top 20” pharmaceutical companies worldwide. That’s reflected by similar technology elsewhere. Pelican BioThermal’s new model, for instance, is totally reusable. On retirement, for its part, Sonoco ThermoSafe’s new Pegasus unit is 90% recyclable too. As Turney emphasises, that’s a huge boon for companies desperate to cut their overheads – especially now that 80% of firms are passing on rising supply chain costs to consumers.


International deals As all this activity implies, there’s an important environmental aspect to consider here. If hybrid machines like the SkyCell primarily support cost- saving and efficiency, they can also do their bit for the planet. Able to function independently for over 200 hours under extreme conditions, the Swiss devices are bound to cut electricity usage. No wonder SkyCell’s star looks set to soar even higher over the coming years, the Swiss firm deals with Singapore Airlines, Qatar Airways Cargo and other major pharmaceutical shippers.


Challenges remain for any supply chain giant eager to go hybrid. Though active container costs initially look higher, for example, they also take up less cargo space. On a more fundamental level, meanwhile, Turney warns that as drug development costs climb ever higher, the supply chain will soon be under even greater pressure. “We’ve invested more and more money into final drug products – so obviously want to get those medicines to hospitals and patients.” Personnel is another difficulty. Though SkyCell devices need less attention than their active cousins, supply chain operators are still likely to struggle with hiring. According to one recent poll, to take but one example, around 68% of pharma giants flagged securing quality workers as their biggest recruitment challenge. Even so, it’s hard to shake the feeling that firms like SkyCell are on the up, with revolutionary consequences for the industry they serve. ●


World Pharmaceutical Frontiers / www.worldpharmaceuticals.net


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53