Pharmaceutical drugs and biologics logistics' covers the physical movement of pharmaceutical and biologic drugs from the manufacturer to the end-user. It includes the transportation, warehousing, inventory management and other logistics functions. The market consists of those pharmaceutical drugs and biologics logistics that are outsourced to logistics companies instead of handled in-house by the pharmaceutical companies.
Logistics deals with the procurement, planning, and implementation of process activities in the transportation of goods from one place to another. The pharmaceutical industry utilizes logistics services to supply medicinal products to different end users. Pharmaceutical companies sometimes outsource their logistics services to third-party logistics service providers in order to focus on their core business activities such as marketing, production and research and development, to benefit from the cost savings achieved by the logistics companies that combine loads and to avoid the high investment needed in logistics facilities.
This report covers market information on the pharmaceutical packaging and logistics market, cold chain logistics market analysis, and healthcare cold chain logistics market.
The top five companies covered are Deutsche Post DHL Group, FedEx Corporation, Panalpina World Transport (Holding) Ltd, Kuehne + Nagel, and DB Schenker.
The countries covered are USA, UK, Germany, France, Italy, Spain, Russia, Brazil, Australia, China, India, and Japan.
The global pharmaceutical drugs and biologics logistics market was valued at $79.9 billion in 2017. North America was the largest region in the market in 2017, accounting for about 38% of the total market share. The USA was the largest market in the global pharmaceutical drugs and biologics logistics market, accounting for over 25% of the market in 2017.
The pharmaceutical drugs and biologics logistics market is undergoing increasing consolidation by several large pharmaceutical logistics companies acquiring smaller logistic companies to extend their geographical presence and proprietary knowledge. With an acquisition, large firms acquire new technologies and expertise, while providing the smaller vendors with adequate financial and infrastructural support. For example, in 2016, UPS Healthcare Logistics acquired Marken, a clinical trial logistics provider. UPS has also acquired Polar Speed, a UK-based provider of temperature-sensitive pharmaceutical logistics. In 2016, DHL acquired MIT Safetrans, an Italian pharmaceutical logistics provider. In 2017, Kuehne + Nagel acquired Zet Pharma, a Turkey-based pharmaceutical logistics company, and Ferlito Pharma Logistics, an Italy-based pharmaceutical logistics company.
The Global Pharmaceutical Drugs and Biologics Logistics Market is segmented into Cold-Chain Logistics and Non-Cold Chain Logistics.
Pharmaceutical Cold Chain Logistics Market Cold chain logistics refers to the management of temperature-sensitive products as they move through the distribution chain. Major products that require refrigeration include biologics, vaccines, insulin, products derived from blood or plasma, and testing reagents. A majority of temperature-sensitive pharmaceutical products are transported refrigerated at temperatures of 2-8o C. Active packing solutions, passive packing solutions and semi-active solutions are used to ship pharmaceutical products under refrigerated conditions.i Pharmaceutical drug manufacturers also deal with sensitive products such as customized treatments for rare diseases. These products often include more high-value active ingredients that offer shorter shelf lives and carry strict temperature requirements. Some drugs must be kept at controlled room temperature (CRT), which is defined as the temperature of 20 to 25o C with allowable excursion between 15o C and 30o C as long as the mean kinetic temperature remains in the defined range.
Non-Cold Chain Logistics refers to the transport of pharmaceutical products without the need for temperature control and refrigeration. Most of the drugs in the pharmaceutical industry are transported from manufacturer’s site to the end customer by means of non cold chain logistics services.