DKSH Ups Asian Distribution Services; Sanofi Invests In-House in Africa

By Dan Stanton

- Last updated on GMT

Related tags Pharma companies Pharmacology Pharmaceutical industry

DKSH top expand cold chain infrastructure
DKSH top expand cold chain infrastructure
DKSH has upgraded its cold chain infrastructure in Southeast Asia as both small and large manufacturers increase their access needs to emerging markets.

The logistics and business expansion company has added security features, off-site temperature alarm and monitoring control to its multiple GDP (good distribution practice) services across the region, in order to enhance its offerings as pharma companies continue to move towards non-traditional markets.

Andrew Frye, VP and Head of Business Development told that DKSH has been seeing “smaller, new to Asia clients opt for a full service option in increasing numbers.”

“Expansion in Asia is a complicated endeavour with varying regulations from country to country, capital and localization barriers as well as difficulties to attract and retain talents,” ​Frye continued to say. “For the smaller expanding client, DKSH often provides full in-country regulatory management services.”

However, Frye explained that Big Pharma companies too were being drawn to third-party market expansion companies, like DKSH, balancing “their ability to manage larger portfolios”​ with “mature brands which they cannot staff appropriately.”

In recent weeks, DKSH has penned contracts with both Bayer​ and Pfizer​ in Cambodia, who chose to use a third-party distributor in this non-traditional region.

Though Frye said the expansion was not driven by an increased demand in biologics storage and distribution, he did acknowledge “the shift from pharmaceutical drugs to biopharmaceuticals is a global industry trend seen also here in Asia.

“Market uptake is clearly driven by country economics and more so reimbursement approaches. More government reimbursement drives access to these higher priced meds. Likewise, as market access is expanding for biologics in Asia the demand for specialty cold chain services is growing.”

Sanofi Invests in Morocco

Several logistics companies have been upping their distribution services within emerging markets – recently Yusen​ and DHL​, for example - as pharma companies are finding increasing revenue from Asia, African and the Middle-East.

However, self-proclaimed emerging-market leader​ Sanofi has announced​ this week that it is investing $20m in a new logistics platform in Morocco in order to supply the North African market. The new distribution centre will cover an area of almost 12,000m2​ and have a capacity for 14,500 pallets.

Christopher Viehbacher, CEO of Sanofi said the new hub "will become the largest distribution center for Sanofi’s pharmaceutical products on the African continent."

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