Drugs grow for DHL

DHL says it saw a record number of movements of healthcare products in 2009 in Asia. Compared to 2008, shipment of finished pharmaceuticals, vaccines, medical equipment and devices and clinical trials facilitated by the DHL Life Sciences & Healthcare Global Customer Solutions grew overall by seven per cent, a steady growth despite the economic downturn.

“Two major factors driving this growth are the rising demand for healthcare in fast-expanding economies such as China and India, as well as the rapidly ageing populations in countries such as Japan, South Korea, Australia, Taiwan and Singapore,” says Sue Arden, Vice President, Global Customer Solutions, Life Sciences & Healthcare, DHL Asia Pacific. “The growth trend is not surprising given the increasing demand for quality healthcare and affluence in Asia.  By 2014, China and India will make up 50 per cent of the world’s population.”

According to Datamonitor, pharmaceutical sales in Asia Pacific amounted to USD$124.3 billion in 2009 representing 19.3 per cent of global sales. Sales are projected to grow steadily at a compound annual growth rate (CAGR) that exceeds 4.2 per cent from 2009 to 2014, reaching USD$153 billion. From 2005 to 2009, the China market grew the fastest with a CAGR of 21.1 per cent and is projected to grow rapidly at a CAGR of 9.7 per cent from 2009 to 2014.

“The establishment of DHL’s first China Competence Centre in Pudong International Airport, Shanghai and a second scheduled to open within 2010 in Tianjin is a clear testament to the growing demand and opportunity we see in this sector,” adds Arden.

In Australia, DHL completed a US$32 million facility for air and ocean handling at Melbourne airport in late 2009. The facility houses the new healthcare ‘Competence Center’ comprising of 50,000 sq metres and includes two cool rooms that meet GMP/TGA Standard (high FDA equivalent industry standards) for the sole purpose of handling controlled ambient and temperature sensitive products.

“In 2009 the organization further committed to invest US$15 million to develop the Competence Centers in India, Mumbai and Hyderabad targeted as the primary sites, and facility expansion in Singapore,” she adds. “We recognize that Singapore, known for its strong research facilities, not only manufactures pharmaceutical products but is also a key transportation hub receiving pharmaceutical products inbound from major manufacturing sources and providing storage and onward distribution service to Asia. The DHL Life Science Competence Centre in Singapore serves to support the thriving pharmaceutical industry and the Singapore Government’s goal of having at least 10 multi-national production facilities in operation by 2010.”

In Singapore, there are more than 30 leading biomedical sciences companies with their regional headquarters here and the Singapore Government is targeting US$17 billion in biosciences manufacturing output by 2015.

Arden added there has been an increase in the demand for quality transportation of temperature sensitive products requiring either controlled ambient or more stringent temperature monitoring.

Vaccines have emerged as one of the growth segments in the global pharmaceutical industry. With a projected CAGR of over 13 per cent from 2009 to 2012, the industry will emerge as the fastest growing sector. The US and Europe represent the two largest vaccine markets in the world and will continue experiencing healthy growth rate in future.

DHL’s global 2015 strategy is to be the ‘Logistics Provide of Choice’ with continued investment in quality infrastructure, people and processes, DHL Life Sciences & Healthcare look to be in the driving seat.