FedEx HealthCare Solutions. Supporting the global healthcare industry
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1 FedEx HealthCare Solutions Supporting the global healthcare industry
2 Today s Agenda Industry Trends Supply Chain Implications FedEx HealthCare Solutions Q&A 2
3 The HealthCare Industry is at a Critical Development Point FedEx HealthCare Solutions September 18,
4 20% of the Global Population will be Older than 65 by % 19% Share of World Population Aged 65 and Over (%) 20% 17% 15% 13% 11% 9.1% UN World Population Growth (%/yr) Total to % 3.8% 1.1% to % 3.4% 1.0% to % 3.9% 0.9% to % 3.8% 0.8% 9% Source: United Nations 4
5 Health Expenditures Increase Significantly with Age 30,000 25,000 Per Capita U.S. Personal Healthcare Spending by Age Group (in dollars) 3,500 3,000 Per Capita U.S. Spending on Drugs & Medical Products by Age Group (in dollars) 20,000 2,500 2,000 15,000 1,500 10,000 1,000 5, Age Group Source: Centers for Medicare and Medicaid Services, Office of the Actuary, National Health Statistics Group data Age Group Source: Centers for Medicare and Medicaid Services, Office of the Actuary, National Health Statistics Group data. 5
6 Manufacturing & Consumption Shift is Global HealthCare Companies are shifting production to China In 2010, 1 Company alone launched 4 new products and conducted 22 clinical trials in China India s healthcare industry estimated to be $40 billion in 2010 That number expected to explode by 600% to $280 billion by 2020 Brazil is LAC s largest pharmaceutical market at more than $14 billion and growing in double digits Mexico is second largest pharmaceutical market in LAC and growing fast Also one of biggest exporters of medical devices used in US 6
7 Rise of Generics & Complex Biologics Near Term Growth of Branded Pharma is Challenged by Patent Expirations 90% of Medicines will be Generics in 2020 By 2018, 49% of the top 100 Products will be Biotech Products More Fragile Need for Strict Temperature Control By 2016, 8 of the top 10 Best-Selling Global Drugs will require +2 to +8 o C 7
8 Securing the Supply Chain Not a Top Concern Top Concern Concerns increase over security of the supply chain 8
9 Complexity is on the Rise FedEx HealthCare Solutions September 18,
10 What does it Mean for the Supply Chain? Demographics / Geographic Expansion Extension of the Supply Chain Rise of Generics / Increasing Cost Pressures Rise of Biologics and Biosimilars + Complex Regulatory Environment Need for Cost- Effective, Repeatable Solutions Temperature Control, End-to-End Visibility, Reliability, Custodial Control and Security 10
11 Finding the Right Balance Complex Needs Require a Unique Approach... Key Markets Biotech Clinical Trials Consumables Diagnostics Equipment Medical Devices Pharma Market Demands Cryogenic / Specialised Packaging Control Tower Cost-Effective Solutions Dangerous Goods Enhanced Transit Times Emergency Cold Storage Monitoring, Visibility & Intervention Re-Icing & Re-Gelling Services Returns Services Warehousing & Fulfillment...The Express Plus Concept drives our approach 11
12 FedEx connects the globe Connecting 90% of global GDP within 1-3 business days FedEx Corporation More than 300,000 team members worldwide More than 9 million shipments per day Over 375 airports served worldwide More than 90,000 motorised vehicles FedEx Express the largest cargo airline in the world Serving over 220 countries and territories More than 660 aircraft More than 146,000 employees worldwide 12
13 FedEx in Europe 2 major centres for better access and connectivity Our European Hub at Paris-CDG Our Central & Eastern Hub to Cologne Largest outside USA 61,500 docs and boxes per hour This is the largest FedEx solar-power rooftop installations worldwide Automated sorting system $158 million joint investment with Paris airport 140 million joint investment with Cologne airport 13
14 FedEx is close by You re already seeing more of us In the past 15 months we have implemented: 67 new Stations opening across eight countries APPROX. 700 additional FedEx branded vans picking up and delivering More than 1,000 new team members to serve you and your customers 2013 Federal Express Corporation. All rights reserved.
15 Temperature-Controlled Packaging Solutions Take advantage of our specialty healthcare packaging to transport your deep frozen, cold and ambient products: Range Solution When to Use? -150 C FedEx Deep Frozen Solution Cost-effectively ship frozen medicines and patient specimens. Eliminate the need for insulated boxes and dry ice Meet requirements to handle infectious substances Dry vapor technology enables up to10 days holding time -20 C to +25 C +4 C to +25 C +15 C to +25 C Envirotainer/Dry-Ice Container C-Safe Compressor Containers FedEx Thermal Blanket Choose and hold shipment temperature set points. Monitor temperature from pickup to delivery Count on controlled positioning in the aircraft Eliminate the need for dry ice and associated challenges. Maintain a consistent internal temperature of the payload compartment. Cover perishable cargo during transportation. Stabilize the cargo's temperature and shield it from weather fluctuation 15
16 Temperature-Controlled Delivery Options Global door-to-door delivery of temperature-sensitive shipments : Temperature-controlled storage and re-icing capabilities at key gateways and hubs Temperature-controlled airfreight Temp-Assure services from FedEx Custom Critical FedEx Healthcare Shared Network* *Currently only available in the US 16
17 Temperature-Controlled Boeing 777F World s largest all-cargo airline lift capacity and global network FedEx Express currently has 21 B777Fs in its fleet and has orders for 22 more Payload capacity of 102 tonnes; flight range of 9,070 km Capable of temperature control For international routes (in replacement of MD11) 18% more fuel efficient Reduces emissions by 18% Less noise around airports at take-offs and landings Lower maintenance and operating costs 17
18 Know Your Shipment Status at all Times FedEx Priority Alert TM Designed for customers who require high degree of visibility and delivery compliance for shipments Proactive monitoring provided 24 hours a day, 7 days a week by dedicated specialists who track status, coordinate package recovery and resolve delivery challenges Includes priority boarding on FedEx aircraft Available with FedEx International First, FedEx International Priority, FedEx Europe First, FedEx International Priority Freight and FedEx International Priority DirectDistribution 18
19 Information is Power when it Comes to Your Sensitive Shipments SenseAware SM Next-generation information service to monitor in-transit conditions in near real time Combines multi-sensor device with webbased platform to provide access to data and enable alerts and notifications Collaborate and share information with business partners Can be used with single shipments or pallets FAA allowance on FedEx aircraft 19
20 Our Supply Chain Expertise at your Service Simplify the storage, fulfilment and distribution of your temperature-sensitive or critical inventory with FedEx SupplyChain solutions : Central and forward stocking locations 24 hours a day, 7 days a week ISO conformity Controlled room temperature, +2-8 C cooler and -40 C freezer 1-hour to 2-day service for critical deliveries Value Added Service assembly, kitting, (re)packing and labelling Industry state-of-the-art IT system integration solutions 20
21 FedEx HealthCare Solutions Delivers Value to Your Business Temperature controlled shipping solutions Cutting-edge Temperature controlled packaging solutions Secure shipping and supply chain management Re-icing and cold storage End-to-end monitoring, visibility and intervention VALUE Commitment to Good Distribution Practices (GDP) Commitment to quality Dangerous Goods capabilities Global Reach Unrivalled customs clearance expertise 21
22 Cenetron Diagnostics Challenge: Eliminate the need to re-ice shipments every 2-3 days en route to international destinations with up to 10 days of holding time below -150 C Solution: This molecular laboratory service provider switched to FedEx Deep Frozen Shipping Solution to cost effectively ship temperature-sensitive clinical trial samples worldwide Results: Gained significant end-to-end visibility and control over these shipments and decreased shipping expenses 22
23 Cadence Pharmaceuticals Challenge: Quickly transport a large shipment of the product from a sourcing facility in Italy to the company s logistics provider s facility in Memphis US while ensuring a constant Controlled Room Temperature (CRT) band (+15 C to +30 C) for the 106-pallet shipment Solution: CRT Boeing 777F charter, specially equipped aircraft with two zones that are controlled manually by the pilots and 46 temperature sensors that provide data points every 10 minutes It was also one of the easiest transactions to plan and execute, thanks to the support and commitment we received from the entire FedEx team. Dave Dezan, Director, Supply Chain Operations for Cadence. 23
24 FedEx HealthCare Solutions Supporting the global healthcare industry
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