Niche logistics providers, particularly those within the
pharmaceutical industry appear vulnerable as larger logistics providers such as
DHL, UPS and FedEx look to expand their market share in this valuable and
growing market. Transport Intelligence estimates the global pharmaceutical
logistics market was valued at about $63bn in 2011 growing over 12% from 2010. Over
the next few years, the market is expected to grow 7.6% annually to about $84bn
in 2015.
Several months ago, World Courier, a provider of distribution
services and temperature-controlled/time-sensitive transportation services for biotech
companies, rebuffed UPS’ offer to acquire them. Since then, the company has put
itself on the auction block and rumors are that FedEx may be a leading
contender for the company.
Marken also provides logistics and transportation services
for clinical supplies and samples management. The company has locations in over
20 countries with pharmaceutical depots dotted around the world. Of particular
interest, Marken has been expanding their offerings into emerging markets such
as China, South Africa and Brazil. The private equity company, Apax, acquired
the company in 2009 but since then, Marken’s performance has steadily declined
due to competition from other logistics groups and lower levels of research and
development from large pharmaceutical groups. Apax has hired outside assistance
to determine options for the company – restructuring, cash infusion or sale of
the company. A decision has yet to be made. If it is put up for sale, it would
make a nice acquisition for a major logistics provider looking to expand further in the emerging markets.
Finally, rumors are now circling the beleaguered Celesio.
Based in Germany, the company is in the midst of being overhauled due to
increasing European regulations and competition. Twice in 2011 Celesio was
forced to cut profit forecasts. As such, the company announced it will
concentrate on its main business, that of focusing on drug wholesaling and
pharmacies and sell its units Movianto and Pharmexx. Movianto operates in 13
European countries and provides such services as repackaging and relabeling;
management of samples; promotional materials and clinical trials;
direct-to-pharmacies; direct-to-patient; assistance with market entry/product
launch into Europe; controlled drugs and contract logistics and transportation.
According to Bloomberg News, Deutsche Post may be interested in acquiring the
unit. Already one of the top global pharmaceutical logistics providers,
Deutsche Post’s DHL unit would further consolidate its market share,
particularly in Europe, if such an acquisition would take place.
The pharmaceutical logistics industry is a growing one. DHL,
FedEx and UPS have noted the importance of this sector and have made
investments in specialized warehousing/distribution services, containers and
specific sector solutions. Niche players within the pharmaceutical logistics
space are at risk as these larger logistics providers further expand their
offerings and geographic reach in this growing industry.
