Geodis targets new pharma markets

Forwarder identifies rich pickings to be made from growing demand in China and India.

Geodis Wilson has ambitions to become one of the major logistics providers for the pharmaceuticals industry in the fast growing Chinese and Indian markets over the next three years.

Martin Svantesson, Vertical Market Director for Pharmaceuticals at Geodis Wilson, said while North America and Europe currently account for 77% of the pharmaceuticals market, it expected China and India to emerge as key markets in the near future.

“The revenue spent on Pharmaceuticals today is primarily based in Europe and North America, but the question is – is that where the industry will grow in the future? The answer is yes and no, said Svantesson.

“Yes in the sense that Europe and North America will still generate a lot of business, but the future is in the emerging markets of China and India.

“We want to grow with existing customers and also naturally we are interested in meeting new customers.

Svantesson said Geodis Wilson already had a pharmaceutical operation in Shanghai, running a warehouse facility and added it was also involved in distribution to and from India.

He said he expected Geodis Wilson to grow significantly in India because of a lack of harmonization in the current market and because of general market growth.

Svantesson explained: Local pharmaceutical companies have between five and 10 suppliers and just by coming in with a harmonized solution we will be able to bring tremendous value to the supply chain. This year we will identify the possible added values we can offer the market by tailoring warehouse and distribution solutions in the areas we are targeting. 

Pharmaceuticals industry analyst Datamonitor said the Chinese and Indian markets will grow at a rapid rate while the western market’s growth rates will slow for various reasons.

“Faced with dwindling growth rates and increasing pricing and reimbursement, as well as regulatory pressure in the major markets, pharmaceutical companies are looking towards emerging countries as potential sources of future revenue growth it said.

“The tremendous growth rates experienced in some of the emerging market countries as a result of economic growth and healthcare reforms makes them an attractive opportunity.
“The two countries growing urban middle class and the westernization of lifestyles are resulting in growing demand for high value drugs, it added.

Svantesson added that patents on many blockbuster products – drugs that generate over US$1bn in revenues each year – are due to expire soon in the West, opening the market to generic products and driving pharmaceutical companies to search for new markets to sell products.