protecting pharmaceuticals throughout the supply chain

Protecting pharmaceuticals throughout the supply chain The volume increase in temperature-sensitive pharmaceuticals: Hello, Biopharma 2011 2030 By 2016, eight out of 10 of the top-selling pharmaceuticals will require temperature control (Cold Chain Sourcebook) The insulin explosion Ka-boom! Packaging will need to take more insulin to many more places by 2030 Adults suﬀering from diabetes worldwide (International Diabetes Federation) Packaging is the frontline— and the potential fault line—for expensive drugs With biopharma products often worth $1,000 or more per gram of active ingredient, a single pallet of a cold‐chain product can easily be worth $1 million or more Changing regulations are: By 2018, biopharma will become a $280 billion business, 12% of which will comprise logistics expenses (Cold Chain Sourcebook) Supply chain executives cite regulatory compliance or changing/increasing regulations as key drivers of supply chain change Driving change 78% Driving costs Supply chain executives say increasing cold chain packaging regulations are driving up costs 35% (Seventh annual UPS Pain in the Chain survey) 552 million 366 million (in billions) Biopharma logistics costs: $24B NOW $200B 2018 $280B Biopharma logistics costs: $33.6B Per Pallet $1M

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Protecting pharmaceuticals throughout the supply chain

The volume increase in temperature-sensitive pharmaceuticals:

Hello, Biopharma

2011 2030

By 2016, eight out of 10 of the top-selling pharmaceuticals will require temperature control

(Cold Chain Sourcebook)

The insulin explosion Ka-boom! Packaging will need to take more insulin to many more places by 2030

Adults su�eringfrom diabetes

worldwide

(International Diabetes Federation)

Packaging is the frontline—and the potential fault line—for expensive drugsWith biopharma products often worth $1,000 or more per gram of active ingredient, a single pallet of a cold‐chain product can easily be worth $1 million or more

Changing regulations are:

By 2018, biopharma will become a $280 billion business,12% of which will comprise logistics expenses

(Cold Chain Sourcebook)

Supply chain executives cite regulatory compliance or

changing/increasing regulations as key drivers of supply chain change

Driving change

78%Driving costs

Supply chain executives say increasing cold chain packaging regulations are driving up costs

35% (Seventh annual UPS Pain in the Chain survey)

552million366

million

(in billions)

Biopharma logistics costs: $24B

NOW $200B

2018 $280BBiopharma logistics costs: $33.6B

PerPallet

$1M

http://www.ups.com

http://www.healthcare.ups.com/PITC

Page 2: Protecting Pharmaceuticals throughout the Supply Chain

Product protection

Biggest product damage/spoilage concerns of supply chain executives

Adverseweather ortemperature

Packaging failure

Disruption preparedness

Ahead of the pack

UPS knows ambient conditionsUPS surveyed 1.3 million miles of shipping lanes to create its Temperature True Lane Pro�le Study

UPS knows how to mitigate damage/spoilageUPS Proactive Response®, a monitoring and intervention service, protects 13 million temperature-sensitive packages a year (UPS)

say disruptive events are too unlikely to plan for

Can you attain Nirvana?

A 1:4 product-to-packaging ratio, achieved cost e�ectively, is temperature-sensitive “packaging Nirvana,” according to some leading engineers

69%Customs delays

46%

of supply chain executives cite

packaging failure as a supply

chain challenge

41%

are using enhanced thermal packaging and containers to combat the challenge

63%

61%