A Blizzard in the Forecast?

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Transcript A Blizzard in the Forecast?

A Blizzard in the Forecast?

The Changing Face of Regulations, Air Cargo Transport, and Logistics Driving Global Healthcare Distribution

Kevin O’Donnell, Director and Chief Technical Advisor, ThermoSafe Brands and Chair IATA Time & Temperature Task Force Tony Wright, CEO, Exelsius Cold Chain Management and member IATA Time & Temperature Task Force and PCCIG HPCLC Long Boat Key, FL 14 October 2010

Regulatory Drivers

• • • Increased scrutiny on the entire distribution supply chain Increased expectation in shipment monitoring Greater regulatory enforcement

Major Regulatory Changes, Standards & Guidance to be enacted in 2011 • • • United States Pharmacopoeia – General Chapter <1079> Good Storage and Shipping

Practices World Health Organization

Harmonized guidance for the storage and transport of time and temperature–sensitive pharmaceutical products

Health Canada’s – GUIDE-0069 Guidelines for Temperature Control of Drug

Products during Storage and Transportation

But Wait – There’s More!

• Parenteral Drug Association – Technical Report No. 39: Guidance for

Temperature-Controlled Medicinal Products: Maintaining the Quality of Temperature-Sensitive Medicinal Products through the Transportation Environment

– Technical Report No. 46: Last Mile: Guidance for

Good Distribution Practices for Pharmaceutical Products to the End User

… and more

– – HDMA Managing Cold Chain & Temperature Sensitive

Products

– PDA Technical Report No ?: Recommended Best Practices

for Manufacturers of Temperature Sensitive Products to Comply with TSA Cargo Screening Requirements

IATA Chapter 17: Air Transport Logistics for Time and

Temperature-Sensitive Healthcare Products

– And more on the way!

Why All the Attention?

• Substantial increase in temperature-controlled drug products due to: – – – – – Patent expiration on biological drugs Surge in biologics New product development New global markets Evolving manufacturing practices

Global Manufacturing Processes

5

2-25 C

4

2-25 C

2

2-8 C

3

-30 C

1

2-8 C Courtesy: Exelsius/Zymogenetics

Market Statistics

• • • • • Market worth approximately US$680bn.

Temperature-controlled market $168bn.

Healthcare market forecast to grow to US$900bn by 2012.

Nearly 100% of all vaccines and 65% of biotech products need temperature controlled storage and transportation.

Biotech market fastest growth – majority by air cargo.

Air Cargo’s Changing Airscape

• Downsized Fleets • Reconfigured Aircraft Utilization • Airline Consolidation • Abandon Lanes • Trade Imbalances

The 2010 Turnaround

Air Freight Capacity is not Keeping up with Global Growth.

Source: Boeing Report, June 2010

New Aircraft Orders are Up

Source: Boeing Report, June 2010

Aircraft Demand by size 2009-2029

Size Regional Jets Single Aisle Twin Aisle Large New Airplanes Value ($B)

1,920 21,160 7,100 720 60 1,680 1,630 220 Source: Boeing Report, June 2010

Emerging economies and changing demographics will shift passenger traffic and consequently, cargo flows And at a time when outsourced production means greater logistical challenges to cold chain distribution……

Source: :IATA

The Overall Air Cargo Sector

Total Airline Revenues • Approximately 12% of total airline revenues are from air cargo.

US$50bn • By volume of cargo carried, only 5% is ‘perishable’.

• Healthcare products represent less than 0.5% of total air cargo.

‘Cold Chain’ Products Growing Faster

Global Biopharma Sales 2008-2011

$877bn Total Market +13% $773bn $147bn Source: Pharmaceutical Commerce $187bn

Cold Chain Products +27%

How is the global air cargo sector reacting?

• Increased focus on the healthcare sector.

• Increased collaboration.

• New air cargo handling regulations.

• Improved technology.

Increased Sector Focus

# Global Airlines offering Pharmaceutical ‘cold-chain’ products

• Mutual • Physical • Beneficial Collaboration

Collaboration in the air cargo logistics process – who’s involved?

Manufacturers & Shippers Thermal Solution Providers Origin-Destination Air Carrier Origin Forwarders & Trucking Co’s.

Airport Ground Handlers Airport Ground Handlers Destination Forwarders & Trucking Co’s

Collaboration: Getting the entire cold chain working together to improve the way it operates

Distributors & Consignees

Key Areas of Cold Chain Risk 20% 23%

Manufacturers & Shippers Thermal Solution Providers Origin Forwarders & Trucking Co’s.

Airport Ground Handlers

57%

Origin-Destination Air Carrier Airport Ground Handlers Destination Forwarders & Trucking Co’s Distributors & Consignees

Courtesy Exelsius

Collaboration in Practice • IATA Time & Temperature Task Force • Manufacturers, forwarders, airlines, regulators, ground handling co’s, technology providers, etc • Brought together into a commonly understood purpose – patient safety. • Required immense time & effort

Collaboration resulted in a new set of Regulations...

• IATA Perishable Cargo Regulations, Chapter 17 • Binding to all IATA members • Specific to the handling of time and temperature-sensitive products.

... and a vital new label

Gaining Industry Support Courtesy CSafe & ThermoSafe

Transportation Technology Advances • Provides both heating and cooling.

• Reliable, compressor-driven technology.

• On-board temperature monitor

Summary • Regulation, regulation, regulation • Challenges of global manufacturing • Air Cargo’s changing ‘airscape’ • Capacity vs. growth • Cold chain growing fast(er) • The air cargo sector is reacting • Collaboration & new technology

Who depends on us working together?

They Do!

Thank You!

Tony Wright [email protected]

Kevin O’Donnell kevin.o’[email protected]