Expert’s Opinion

The Evolution of Cold Supply Chains in the Wake of COVID-19

How the pharmaceutical industry implemented changes and how these changes continue to affect standard distribution practices.

By: Andrew Kirk

Chief Operating Officer at BioCare, Inc.

When COVID-19 vaccines first came to market, one of the primary concerns was the feasibility of distribution, given the vaccines must be stored at especially low, highly specific temperatures. Prior to the pandemic, many hospitals didn’t have proper cold storage facilities or capabilities, causing vaccine manufacturers to question their ability to properly store the product.

As it turned out, the mass distribution of COVID-19 vaccines was just the push needed for the pharmaceutical industry to drive innovation and create actionable initiatives to improve cold chains, or low temperature-controlled supply chains. While the widespread complications associated with cold chains have long been around, it took the uniquely urgent nature of the pandemic to bring them to light.
  
But, nearly 20 months since the pandemic hit hard in the U.S., how has the pharmaceutical industry implemented changes?  Additionally, how will these changes continue to affect standard distribution practices?

Temperature Monitoring
While cold supply chains work similarly to regular supply chains, there exists the added complexity of temperature monitoring. Cold chains require around-the-clock temperature monitoring systems that ensure products are stored in accordance with manufacturer guidelines and alert the distributor immediately if any issues arise.

While the cold supply chain applies to the COVID-19 vaccine, it’s also imperative for other life-saving drugs. For instance, at BioCareSD’s parent company, Vitalant, a national blood service provider, it’s essential for the cold storage facilities to always be properly working, with biomolecules such as DNA required to be stored at -80 degrees Celsius.

Unsurprisingly, a major problem with cold supply chains is the lack of adequate and constant temperature monitoring. Similar to Vitalant, many specialty pharmacy distributors require their products to be stored between two and eight degrees Celsius. For this reason, it’s essential for the industry to constantly be innovating and developing new ways to efficiently ship, track and store temperature-sensitive materials – all while recognizing the importance of data-driven insights at every step of the process, from supply procurement through consumers receiving their goods.

Transportation
In the last year, big transportation companies struggled to keep up with the sheer demand of medication shipments and the inability to ship packages in a timely manner to ensure products do not go bad. For cold supply chains, the added complexity of temperature monitoring can often lead to increased levels of medical waste. In fact, a recent UN report predicted that 1 billion COVID-19 vaccines could have been saved through more efficient cold chain processes. Additionally, more effective procedures could pave the way for wider distribution of biologics and gene therapies.

As part of the solution, third-party logistic companies are playing a bigger role in transporting temperature-sensitive goods. Due to their specific expertise in cold chain logistics, a strong understanding of local rules, customs, and environmental conditions, and an idea of how long it will take to transport goods, third-party logistic companies are a great resource.
 
Storage Facilities
Like transportation companies, hospitals and medical facilities also scrambled to develop proper cold storage facilities and capabilities. Prior to COVID-19, many hospitals didn’t have adequate cold storage, which limited their ability to store vaccines and other therapies that require temperature-controlled storage.
 
As a result, COVID-19 caused a national shortage of cold storage facilities and left manufacturers looking for creative solutions to house products, such as college campus research facilities and blood banks. Unfortunately, some manufacturers made the mistake of assuming all distributors have proper cold chain capabilities. As alternative facilities continue to become more prevalent, it will be increasingly important for manufacturers to properly vet their options when choosing a distributor, considering multiple variables: how familiar a particular distributor is with certain products, their access to automated technology and data science, and their understanding of the best modes of transportation for products.

Looking Ahead
The Healthcare Distribution Management Association reports that approximately 10 percent of all medications are temperature-sensitive – a stat that is likely to increase in the coming years. It’s important that manufacturers and distributors recognize that without advancements to the cold supply chain, medication prices will rise due to logistics issues and product waste. Ultimately, developments in cold supply chains and temperature monitoring will result in more affordable medications for both the purchaser and the consumer, increasing access to essential drugs for all.

While the pandemic certainly exacerbated innovation, continued development is sure to take place as further medical advancements are made and more gene therapies become available with tighter temperature control requirements.


Andrew Kirk is the Chief Operating Officer of BioCare, Inc. and is responsible for sales, operations, and pharmacy efforts in the distribution of life-saving specialty therapies. After joining BioCare as an account manager in 1999, Kirk advanced through the company, developing key customer relationships and leading sales teams in new markets nationwide. As Eastern Regional Manager, Kirk developed BioCare’s customer base, managed and hired sales representatives, and targeted distribution locations in the Eastern United States. As the vice president of sales, Kirk helped BioCare manage the transition from a nonprofit and small regional distributor to a national distributor of specialty medications and therapies. In 2019, Kirk was promoted to Chief Operating Officer and focused on BioCare, Inc.’s high-touch customer service operations and national distribution functions.

Keep Up With Our Content. Subscribe To Contract Pharma Newsletters