New pharma, new logistics

If you want to see just how much the pharmaceutical industry is changing – and the immense implications for pharma logistics – look no further than Casgevy. This groundbreaking gene therapy offers new hope to people with sickle cell disease. Casgevy uses gene-editing technology to modify patients’ own stem cells, enabling the production of healthy red blood cells. One of the challenges of this treatment is the cryogenic storage required to maintain the stem cells’ viability. That means the cells must be handled at ultra-low temperatures of up to -196°C – including during transport. Treatments like Casgevy are ushering in a new era of specialty medicine like cell and gene therapy (CGT), where precision treatments demand equally precise logistics solutions.

While treatments become more specialized, patient care is also becoming both specialized and personalized as providers seek to offer patients a better experience. Studies show that today’s patients are more likely than ever to shop for healthcare based on experience, quality, and value – just like they shop for other products and services. This shift is giving rise to “patient-centric healthcare” – a model requiring a closer link between pharma companies and patients.

Building that link will transform supply chains as pharma companies move to a more consumer-oriented model that provides personalized products directly to hospitals, pharmacies, and patients.

The pharmaceutical industry is also preparing for two further challenges. From now until 2030, many big drugmakers will experience the “patent cliff” – when their patents expire and low-cost generics can be produced, which typically causes a sharp drop in revenue. Furthermore, nearly 2 billion people will be over 60 by 2050, increasing the need for more patient-centric tests, rehab, and care for older adults.

Many pharma companies see these challenges as a big opportunity to innovate and this moment as the birth of a vibrant new business ecosystem – and they are racing to develop advanced therapies and specialty treatments to meet the coming demand.

At DHL, we’re excited to be a part of this business, delivering supply chain solutions that are as innovative and agile as the life-saving medicines we transport. Below, we take a closer look at what that means.

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If you take a closer look at Casgevy, the groundbreaking gene therapy mentioned above, you’ll see that temperature is a deciding factor in successful treatment. The same is true for many pharma products, which is why the pharmaceutical industry already spends over $17 billion annually on temperature-controlled storage and transport.

The case of Casgevy demonstrates the direction of cold chain logistics: it’s getting colder. Casgevy and similar treatments require deep-frozen and even cryogenic temperatures. Once stem cells are collected from the patient at the treatment center, they must be transported to the manufacturing facility at -196°C using liquid nitrogen to maintain viability. After the new cells have been created, they are refrozen to -196°C to preserve them for transport back to the patient. It all needs to happen within a specific timeframe to ensure the patient is optimally prepared to receive the gene-modified cells and maximize the therapy’s effectiveness.

How cold is your cold logistics?

Transporting medicines and treatments at controlled temperatures is crucial to maintaining their efficacy and safety. Here are examples of drugs or treatments that require specific temperature controls:

Transporting time-critical and temperature-sensitive treatments like Casgevy requires very careful handling and transport – what is known in pharma logistics as “white glove “ services. These customized solutions demand high-touch, specialized logistics that ensure the safe and secure handling, transportation, and delivery of sensitive items. This includes picking up and delivering the items, such as stem cells, constant temperature monitoring, and end-to-end location tracking – all while following strict regulatory requirements.

Our international specialists at DHL Express offer a Medical Express  solution that meets many of these requirements and is available in over 180 countries. It’s a highly unique pick-up and drop-off service that may involve a courier not only traveling to and from a clinic, healthcare facility, or clinical setting but also remaining there for some time before they can collect or deliver a shipment. This requires building customized contingency plans for unforeseen disruptions or deviations.

The pharma industry is also increasingly looking at end-to-end, integrated logistics solutions, not only for CGT but also for other areas of specialty pharma. Putting a complete package together from start to finish isn’t easy, but we have a strong foundation to build on: To date, over 170 of our warehouses across 43 countries are GDP-qualified (good distribution practice), and over 20 are GMP-certified (good manufacturing practice).

As the world’s leading logistics company, we have a broad international service portfolio, with specialized business units contributing to our health logistics solutions. Over 11,000 life sciences and healthcare (LSH) specialists work at DHL. Here’s a quick look at just some of our capabilities:

• DHL Supply Chain
  A growing network of health logistics facilities with temperature-controlled environments, including dedicated health logistics hubs like our new campus near Frankfurt in Germany (more on that below).
• DHL Global Forwarding
  A Thermonet network with over 120 certified air freight stations and more than 50 certified reefer competence centers for ocean freight.
• DHL Express
  DHL Medical Express provides temperature-controlled shipments in over 180 countries worldwide.
• DHL eCommerce
  Partners with AJEX, a Saudi Arabian e-commerce logistics company capable of providing white glove services in the region down to -25°C.

One example of how we intend to deliver end-to-end solutions for the pharmaceutical industry is our brand-new, cutting-edge LSH campus in the German town of Florstadt. Located near Frankfurt, this 32,000-square-meter facility supports domestic and international pharmaceutical logistics, featuring multiple temperature-controlled zones for storing sensitive medical products. The campus also has advanced automation capabilities and holds crucial certifications, including GMP and GDP, ensuring compliance with industry standards. Our commitment to the future is also shown in the facility’s climate-neutral operations supported by solar energy systems and environmentally friendly practices.

Florstadt is the first of many DHL health logistics operations going live around the world.

While we look to the future, we’re not ignoring the needs of more conventional medical treatments, which are still a big part of pharmaceutical logistics. Conventional medicines still make up around 50% of the pharma business, though growth forecasts are lower than the biopharma or CGT markets.

In fact, we’re seeing trends in traditional pharma logistics toward outsourcing and inbound-to-manufacturing logistics as pharma companies concentrate primarily on research & development and don’t consider logistics part of their core business. Supply chain and logistics are seen as opportunities to optimize and save costs, and they’re looking for providers to help them accomplish that.

The transformation in the pharmaceutical industry toward advanced therapies and patient-centric healthcare is bringing exciting change to the logistics industry. While this new world of medicine presents many challenges, we see an opportunity to build on our cold chain capabilities, specialized services, and end-to-end solutions to support the evolving needs of the pharma industry.

But it goes beyond that. There’s a reason our company’s purpose is Connecting People, Improving Lives. Our purpose encapsulates our desire to contribute to a better world. It fosters a culture of commitment and pride among our people, providing the impetus to make a lasting positive impact.

Our Health Logistics is much more than market potential or profit margins. For many of us, the work is personal, and we prioritize care in everything we do to serve the well-being of patients worldwide.