Q&A: What the future holds for the biopharma supply chain

EPM fired some quick questions with Juan Guerra, president of International Business Group at AmerisourceBergen, to learn about the increasing market for cold chain products and the future of the biopharma supply chain.

Q. How has the market for cold chain products changed in recent years and how have the needs of biopharma companies evolved?

A. The cold chain pharmaceutical market has experienced tremendous growth due, in part, to the increasing number of biopharmaceuticals and vaccines entering the pipeline. Over the next five years, the global market for cold chain products is expected to jump from $366 billion to $480 billion.

The influx of specialty pharmaceutical products, such as cell and gene therapies, offers tremendous promise for patients worldwide. However, these products also introduce unique logistical challenges and considerations. For example, temperature-sensitive biological products require storage within a narrow temperature range, such as refrigerated or frozen, throughout warehouse storage and transport. Any deviations in temperature could affect the safety and efficacy of the product, resulting in significant financial losses and, more importantly, delaying patient access to the treatment they need.

Biopharma companies increasingly seek partners that can offer validated storage across a global network, cold chain packaging solutions and monitoring capabilities that provide enhanced end-to-end visibility across the supply chain. Innovation in packaging design, in particular, has introduced new cold chain packaging solutions that provide extended temperature stability, enabling reliable deliveries over longer distances and protection against potential challenges, such as airport custom delays or shipments through extreme climates.

As more high-value products are being delivered over longer distances, biopharma companies want to work with partners that can also provide them with more data and information on the shipment’s temperature and status. Partners that can deploy tracking technology and advanced monitoring tools are able to provide biopharma companies with increased visibility across the supply chain, including real-time updates on precise location and internal temperature.

Although their specific needs have evolved, biopharma companies ultimately want to work with a partner they trust to protect their products and deliver them on time and in the right condition.

Q. How is AmerisourceBergen expanding its global cold chain logistics capabilities to meet its partners’ evolving needs?

A. While the COVID-19 pandemic shined a spotlight on cold chain logistics, the demand for temperature-controlled solutions has grown steadily over the last decade. During that timeframe, Alliance Healthcare, World Courier and ICS (all a part of AmerisourceBergen) have made significant investments to build out our cold chain capabilities—from expanding our cryogenic storage capacity around the world to developing new solutions, like World Courier’s Cocoon, a passive solution which uses a combination of honeycomb, vacuum-insulated panels and advanced phase change materials to provide stable thermal protection for more than 120 hours across the main temperature ranges, including ambient, refrigerated and frozen.

Through the continued investments in infrastructure and temperature-controlled solutions, our collective teams were well-positioned to work with various government agencies and supply chain partners to support the delivery of millions of COVID-19 vaccine doses around the world—from islands off of Norway and remote regions in Africa to communities across England.

As more innovative products enter the pipeline, we continue to elevate our capabilities to ensure we’re well-positioned to meet our partners’ needs – whether it’s cold chain storage to support a clinical trial or transporting an oncology product across multiple countries within a very narrow timeframe. As more allogeneic cell therapies enter the pipeline, World Courier has doubled its cryogenic storage capacity across its global network of clinical and commercial depots. Alliance Healthcare and Alloga, Alliance Healthcare's healthcare logistics provider, continue to expand their presence and cold capabilities in key markets across Europe. These continued investments, coupled with our operational expertise and presence in markets worldwide, enable us to deliver unmatched logistics and distribution support around the world.  

Q. What do you think the future holds for the pharma supply chain in Europe?

A. The European Commission in 2020 outlined a pharmaceutical strategy for Europe that aims to advance patient access to innovative medicines and bolster the competitiveness and sustainability of the industry. A core pillar of the strategy focuses on secure supply chains.

Robust and well-functioning international supply chains are essential to ensure pharmaceutical products can safely and reliably reach patients across Europe—whether it’s an investigational medical product (IMP) for a clinical trial or a potentially life-saving treatment that requires urgent transport. Through our pan-European distribution capabilities and presence in countries across Europe, we play a vital role in safeguarding the pharmaceutical supply chain. Over the last couple of years, the pharmaceutical supply chain proved to be resilient, in part, because of effective public-private partnerships and robust infrastructure, such as strategically located warehouse facilities, that enabled teams to be agile and respond quickly at the regional and local levels to avoid interruptions. We continue to expand our distribution capabilities and presence across Europe to meet the evolving needs of our partners and maintain an efficient and reliable pharmaceutical supply chain.

As we look ahead, one priority will be the continued focus on establishing more sustainable and responsible operations across the supply chain. There is a significant opportunity to deploy practices that increase efficiency, product safety and quality, while also reducing greenhouse gas emissions and minimising waste. For example, the Alliance Healthcare team in the Netherlands recently introduced hybrid vans to its fleet and many of our sites in Romania are sourcing almost 50 percent of all electricity needs from solar energy. It’s imperative that we, as an industry, continue to maintain this momentum in order to create meaningful change.

Q. It has been a little over a year since AmerisourceBergen acquired Alliance Healthcare. What are some of the positives you’ve seen since the acquisition?

A. Through our joint capabilities, we’re able to provide biopharma companies looking to launch products in Europe with enhanced and differentiated support across the product lifecycle.

In addition to its best-in-class distribution capabilities, AmerisourceBergen offers a portfolio of commercialisation solutions to help our manufacturer partners navigate challenges at each stage of the process and maximise commercial success and patient access. Our Global Pharma Services team includes an experienced group of consultants across Europe who are experts in real-world evidence and health economics and outcomes research and can provide valuable market access support. The market expertise and consulting capabilities is particularly valuable as biopharma companies must navigate varying regulations and requirements across the different countries in Europe. We’re now able to pair those consulting services with Alliance Healthcare’s manufacturer solutions and pan-European distribution capabilities to deliver unmatched end-to-end support that can be tailored to our partners’ specific needs.