Partner Article

How to Export Life Sciences Products

Toby Hay, Global Sales Manager, FedEx HealthCare Solutions offers exporting advice to Life Sciences businesses. This article also includes a case study of the business Horizon Discovery and how it has achieved international success.

The life science sector in the UK is about to boom. In the first half of 2014, the industry raised more financing (£734m) than in all of 2013 (£483m).[1] This makes it Europe’s top destination for life science funding, dovetailing seamlessly with the government’s aim to make the UK a global hub for the sector. [2] In truth, it is already well on its way and the growth potential for businesses that this cash injection will create is vast.

By its nature, life science is dynamic and experiences constant change as a result of both internal and external factors. The number of life science companies in the UK is rising[3], but so is demand for their output. Chronic conditions such as obesity and diabetes require more consideration than ever and combined with an ageing population, the “pull” from the domestic market is growing stronger.

But, in an international age, is meeting domestic demand enough? Increased funding will create an environment where UK life science businesses have more opportunities than ever to “push” overseas. Many are already doing so with UK exports accounting for 15% of the global total.[4] That’s not to say more can’t be done, especially in emerging markets and in countries experiencing sustained population growth.

Those seeking to build upon the nation’s proud life science heritage stand to gain the most, though transporting across borders and time zones poses new challenges. To help overcome these, we’ve compiled our top five insights to achieving export success in this industry.

1. The importance of on-time delivery. Ensuring shipments arrive on time is unarguably crucial, but becomes harder to achieve the further they travel. Healthcare supply chains, for example, are often complex and involve multiple waypoints. The key is striking a balance between value and speed. Having the option to pick up the phone and have your products in a customer’s hands within two days is invaluable in securing business which might otherwise go elsewhere. The key is flexibility to react to the situation at hand.

2. Ensuring product integrity and supply chain visibility. An absolute must in this industry is the ability to know for certain that critical and sensitive shipments will arrive on time in the exact condition they need to be. You also need to be able to assess if they have been properly stored for the duration of the journey. In recent times, a number of options have become available for this. The FedEx SenseAware® service uses sensor based technology to provide near real-time visibility on shipments in terms of location, temperature, shock, barometric pressure and exposure to light.

3. Regulatory compliance and customs challenges. Regulations not only change frequently, but differ from country to country and many nations are not nearly as flexible as the UK aspires to be. The key is to get ahead of the game by understanding the rules and regulations from the get-go. You don’t need to become an expert; your logistics provider is an invaluable fountain of knowledge who can advise on potential hurdles and provide strategic advice every step of the way. The best providers will have on-the-ground specialists who know the rules inside out, giving you total peace of mind.

4. Choosing markets. Established or emerging markets, that is the question. Finding the right fit for your products is about more than simply following what everyone else is doing. You could, for example, look to Russia where almost 80 percent of healthcare products are imported[5], or China where pharmaceutical sales are expected to grow an average 17.7 percent per year until 2017[6].Tapping into your logistics provider’s expertise is again an effective way of researching new markets, and identifying the right opportunities for your business.

5. A responsive supply chain. Sometimes the unexpected happens. When it does, you need the reassurance that the challenge can be overcome without delay. Services, such as FedEx Priority Alert Plus®, can help by offering proactive recovery, dry ice replenishment, gel pack conditioning and access to cold storage. Having these options is particularly useful to companies in the healthcare sector, though can be an asset to any company moving items of a sensitive or perishable nature.

With so much opportunity on the horizon, if you take one piece of advice away from this, it is that these days, you don’t have to be a transportation expert, as there are specialists on hand. Working with life science companies is an exciting prospect for logistics providers and we enjoy nothing more than helping them expand whether at home or abroad.

Life Sciences Case Study: Horizon Discovery

Located in Cambridge, one of the world’s foremost biotech centres, Horizon Discovery is a trusted provider of research tools to hundreds of organisations engaged in genomics research and the development of personalised medicines. It aspires to provide science-driven research solutions that lead to a better understanding of the genetic basis of disease, ultimately resulting in better healthcare outcomes for patients.

Ranked as one of the fastest growing biotechnology companies in Europe, the company has first-hand knowledge of the challenges involved in maintaining seamless global communications during a period of rapid expansion.[7] Having successfully grown to a team of 180 expert staff spread across state-of-the-art facilities in Cambridge (UK), Cambridge (Mass.), St. Louis (MO) and Boyertown (PA) in the US, Horizon Discovery’s customer base is now approaching 1,000 organisations. Customers include major pharmaceutical, biotech and diagnostic companies, as well as leading academic research centres — all of whom expect outstanding levels of service.

A Growing Business

Founded in the UK in 2007, Horizon Discovery is built upon a world-leading gene editing platform, GENESIS™. Horizon Discovery’s technology is widely used in genomics research, and is increasingly important in the development of personalised medicines targeting specific genetic drivers of diseases like cancer. Since its launch, the company has made strong commercial progress, and raised nearly £70m to fuel global growth through an IPO on the London Stock Exchange in early 2014, an all-time record for a Cambridge life sciences company.

Horizon Discovery works with many of the world’s leaders in research and development, an area that is set to expand further thanks to their status as one of five multi-national grant funded research consortia. Having won the 2014 European Mediscience Emerging Star Award, Horizon Discovery is enjoying the impact of a UK biotech boom, seeing a year-on-year compound growth rate of 125%[8] (2008-2013).

The Shipping Challenges

A significant shipping challenge for Horizon Discovery is that many products need to be transported on dry ice or in temperature-controlled environments, and handled delicately to ensure the stability of the product. Horizon Discovery ships all over the world, predominantly to the US, but is continuing to rapidly expand into markets across Europe and the Far East. As these markets continue to expand overseas, Horizon Discovery faces issues of how to continue to consistently deliver temperature sensitive products to clients on time and intact, whilst also ensuring that their service is not hampered by stringent customs rules and regulations.

Working with large pharmaceutical groups or academic organisations, Horizon Discovery also identified the issue that organisations such as these often have a laborious accounts process before orders can be processed, which can sometimes cause delays in shipments.

Why FedEx Express?

Approaching FedEx Express in 2010 on the basis of shared mutual values of quality and integrity, the logistics support has continued as the group has experienced global growth. With its expertise in the area, FedEx is able to assist Horizon Discovery in navigating customs rules and regulations around the world. This is particularly valuable as the company looks to expand into new markets. For example, having originally encountered challenges with the US Food and Drug Administration (FDA) over medical products labelled with the acronym ‘FISH’ (Fluorescence In Situ Hybridisation), the Customs experts at FedEx helped to work out commodity codes and create standard forms to expedite the travel through customs, ensuring orders were fulfilled on time.

Before working with FedEx, one of the main challenges Horizon Discovery faced was the customers’ need to receive the products without delay. By using the FedEx International Priority Alert™ service, Horizon Discovery ensures that its products are with their customers within two days of payment being made. In addition, FedEx cold shipping packaging helps to fulfil specialist requirements such as keeping sensitive items at the optimum temperature for the duration of transit.

FedEx Track Record

With a proven track record of expanding in Europe and launching new products, the logistical expertise offered by FedEx will play an increasingly important role in helping Horizon Discovery to grow. FedEx will continue to help facilitate the seamless transport of products across borders, through customs and into the hands of customers, maintaining a level of service that reflects Horizon Discovery’s rigorous scientific standards.

Dr Charli Batley, Group Purchasing Manager, Horizon Discovery says:

“Horizon Discovery has grown rapidly since launch and, as a purchasing manager, my contribution to this success would not have been possible if we did not have such an alliance with FedEx, as we would not be able to meet our customer’s expectations. As an industry, the Life Sciences face significant specialist logistical challenges and having the experience of FedEx behind us to guide our business through everything from shipment integrity to customs rules and regulations has played an integral part in the expansion of our business.”

[1] The Financial Times, October 2014

[2] Department for Business Innovation & Skills – Strategy for UK Life Sciences report

[3] The Daily Telegraph, April 2014

[4] The Daily Telegraph, April 2014

[5] Deloitte 2014 Global life sciences outlook P.18

[6] Deloitte 2014 Global life sciences outlook P.20

[7] Deloitte Fast 50 2013, Horizon Discovery ranked 1st in the Biotechnology category

[8] Horizon Discovery, Key Milestones and achievements

This was posted in Bdaily's Members' News section by Toby Hay .