Delivering On The Vast Potential Of Personalized Medicine

Richard W. Smith

Richard W. Smith

Vice President of Global Trade Services, FedEx Express

Mr. Richard W. Smith has been Vice President of Global Trade Services at FedEx Express since April 2014. In 2013, Mr. Smith gained the U.S. International department of Global Trade Services. He served as Managing Director of Life Sciences & Specialty Services at FedEx Express since 2009. In 2007 he became a Manager over Supply Chain Solutions. Mr. Smith’s career in FedEx began in 2005 as a Senior Solutions Analyst. He has been Vice Chairman of The Greater Memphis Chamber since December 2015 and also serves as Member of the Board of Directors at Tennessee Technology Development Corporation. He is actively involved in ameliorating supply chain in both healthcare and Pharma sectors.

Patients in the 21st century have joined an increasingly visible group of “empowered consumers”. These consumers are tech-savvy, informed, hands-on, global and, increasingly, in control of when, where and how they are treated.

Personalized medicine is the exciting result of these empowered patients seeking higher standards of care and the rapid adoption of new techniques in genomic and proteomic science. Defined as “the right treatment for the right person at the right time”, personalized medicine takes into account patients’ genetic profiles and predictive reactions to treatments, which, driven by clinical trials, dramatically increases the efficacy of treatments and ultimately improves patient outcomes.

Treatments of critical illnesses such as Alzheimer’s have today transformed into a participatory process1. People fearing they are at risk of inheriting Alzheimer’s no longer content themselves with awaiting what might or might not come. With information once only accessible to healthcare professionals, these people, now on their own initiative, request for advanced screening techniques and experimental treatments.

Opportunities Within and Beyond Healthcare :

Personalized medicine not only presents a huge opportunity for the medical world, it also opens doors for industries not traditionally associated with healthcare. Fast becoming a lucrative industry, the global personalized medicine market is forecasted to reach US$2.4 trillion through 2022 at a compound annual growth rate (CAGR) of 11.8 percent2 – more than double the projected 5.2 percent annual growth for the overall healthcare sector3. In Asia Pacific alone, a large population base, high market penetration and global collaboration will lead to a whopping 13 percent growth through 2024.

Since the nature of personalized medicine is highly complex, in order to realize this potential, the healthcare sector must look beyond its borders and rely on cross-sector collaboration. Driving further innovation and greater efficiency will require the skills and resources of the entire ecosystem, from regulators to manufacturers to suppliers. Swiftly moving a biomarker produced in the U.S. to a patient in Asia Pacific for a much-needed screening for cancer, for example, would otherwise be impossible.

The logistics industry, therefore, emerges as an important stakeholder. Its expertise in managing complex supply chains is key for the healthcare sector to adapt to new market realities and harness the opportunities caused by this disruption.

Supply Chain Enables Greater Possibilities :

Reducing Costs

Personalized medicine can be expensive. Regulators’ demands for rigorous clinical studies, along with the need for diagnostic tests to track a treatment’s efficacy, impose immense development costs which impact margins for healthcare players and affordability for patients.

One area that can ease these cost pressures is the supply chain, which currently represents nearly 25 percent of Pharma costs and more than 40 percent of medical device costs.5 Even minor efficiency gains from shortened manufacturing lead times and slashed inventory levels could free up billions of dollars for the industry.
In the Pharma industry today, the replenishment lead time from plant to distribution centre is still 75 days on average. Six agile supply management processes will ensure shorter replenishment lead times, thereby avoiding critical stock-outs.

Maintaining Shipment Integrity

Guaranteeing the integrity of personalized medicine shipments is as important as it is challenging. Take, for instance, autologous cell therapy products, which are developed from the patient’s own cells. Since the products are fully personalized, any damage during the shipping process, however minor, could be life-endangering. Logistics providers have developed solutions to address such risks. One example is SenseAware® powered by FedEx, which provides near real-time visibility into a shipment’s location, temperature, humidity, barometric pressure, etc., while in transit. This allows for a quick response when issues arise.

Controlling Temperatures

Biologics, a key component of personalized medicine, require reliable cold chain logistics to maintain its quality throughout its entire journey. This reliability becomes even more important as the healthcare sector looks to emerging markets, where warm climates and large distances add to the existing challenges. Consequently, healthcare cold chain logistics in Asia Pacific is forecasted to see double-digit growth through 2020.

Cadence Pharmaceuticals, Inc.8, a biopharmaceutical company, is one of the many that benefit from cold chain logistics. They managed to expedite a massive 106-pallet shipment of their acetaminophen injection from Anagni, Italy to Memphis, U.S. using our integrated air-and-ground cold chain solutions, which include a Boeing 777 freighter equipped with controlled room temperature (CRT), thermal blankets as well as customs clearance support. The result is the fact that they successfully captured the overwhelming demand for their product through an improved response time – at a decreased cost.

As patients become increasingly informed and empowered, the challenges are mounting for personalized medicine and the supply chains that serve as their lifelines. In order to bring to fruition the vast potential of this fast-emerging sector, healthcare players must work in harmony with their industry peers, governments and logistics providers. The benefits will be seen not just in the bottom lines of businesses and more groundbreaking innovations, but critically, in the well-being of millions of patients.

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