Consultant’s Insight: Cryoport expands its cold-chain supply chain capabilities

Brentwood, Tenn.-based Cryoport is on the acquisition trail to expand its temperature-controlled supply chain capabilities as it faces growing competition from other specialized providers, the express market and freight forwarders. Within the past month, the company has acquired German technology company Tec4med Lifescience and Bluebird Express , a domestic and international transportation service provider based in New York. [caption id="attachment_76185" align="alignright" width="298"] Cathy Roberson, Cargo Facts Consulting senior consultant and Air Cargo Next columnist[/caption] “There is no other organization in the life sciences with the breadth of capabilities Cryoport has in providing robust, dependable, end-to-end supply chain solutions,” Cryoport Chief Executive Jerrell Shelton told analysts during the company’s third-quarter earnings call on Nov 8. “Today, CRYOPDP is the world’s third-largest specialty couriers serving the life sciences, covering over 220 countries and territories.” The temperature-controlled logistics solutions provider CRYOPDP was acquired by Cryoport in 2020. Consulting firm Deloitte estimates the pharmaceutical drug delivery market is expected to grow to $1.45 trillion by 2028 from $1.17 trillion in 2022. Focus on health care The pharmaceutical drug delivery market is fragmented, with participants ranging from specialized providers to traditional carriers and freight forwarders. For example, during its Oct. 26 earnings call , UPS executives said the company is on track to achieve its goal of $10 billion in health care revenue this year. It recently snapped up MNX Global Logistics and health care logistics provider Bomi Group last year. In addition, it opened seven dedicated health care facilities in Europe and the United States this year. Since 2020, UPS has more than doubled its health care distribution space globally. World Courier , a division of Cencora , formerly known as AmerisourceBergen , has invested in real-time location monitoring and, since 2021, has doubled its cryogenic storage capacity across its clinical and commercial depots and expanded its global network of liquid nitrogen charging centers and stations to support the growth of cell and gene therapies. Earlier this year, freight forwarder AIT Worldwide Logistics launched its Critical Solutions Group , focused on “developing individualized, stringent shipment plans for life-saving therapies, including cell and gene therapies, autologous vaccines, CAR T-cell and TCR therapies, and patient samples,” per its July announcement. Visibility, transparency, speed Deloitte also notes that there is often a lack of visibility within pharmaceutical supply chains and that transparency is needed. As a result, life sciences companies are prioritizing digital governance to prevent delays, such as supply chain bottlenecks, using smart sensors that provide timely feedback on operations. Cryoport’s acquisition of Tec4med Lifescience will help the company “expand our digital supply chain solutions offerings and be able to provide our life sciences clients with even greater condition-monitoring options, logistics management capabilities and customer support,” Shelton said. Speed is also essential due to time-definite delivery requirements — hence, the acquisition of Bluebird Express. Bluebird Express is an accredited cargo agent with IATA that offers such services as next flight out, standard and expedited airfreight, air charter, and trucking and rail services. Bluebird Express will join Cryoport’s CRYOPDP business unit, which provides such services as transportation, packaging and value-added services. “CRYOPDP has extensive experience in supporting the life sciences industry, including the rapidly growing market for cell and gene therapies,” CRYOPDP Chief Executive Cedric Picaud said in a statement. “The United States has been leading the way in cell and gene therapy clinical trials since 2022, with over 400 companies actively developing cell and gene therapy products for various applications. “The addition of Bluebird Express, which already has an extensive working relationship with Cryoport, and its team of seasoned veterans will merge into CRYOPDP’s global network and will expand our U.S. presence and enhance our capabilities in this critical life sciences market,” Picaud added. As Cryoport expands its supply chain offerings, the fragmented life science supply chain market will likely see more consolidation. Cryoport will probably pick up more companies to grow globally and increase its market share. Join Air Cargo Next for the upcoming webinar, “The future of AI in air cargo,” on Tuesday, Dec. 5, at 11 a.m. ET. More information about the webinar and registration is available here .

Consultant’s Insight: Cryoport expands its cold-chain supply chain capabilities

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