Cold chain technology is relied on for the safe and prompt transportation of perishable products, ranging from foods to temperature sensitive pharmaceutical products, chemicals, and other medical devices.
The move is particularly significant for the future of the New Jersey-based company, because according to a 2018 report from ResearchAndMarkets.com, the cold chain market is expected to grow in value from $3.8 billion in 2018, up to a staggering $6.5 billion by 2023.
Newfound federal focus on issuing policies that impact the supply chain efficiency of the pharmaceuticals sector in Europe and North America has been a major reason for the increased demand for temperature sensitive drugs among other cold chain areas, all of which aids to the extreme growth of the market. It is worth nothing that while booming, the growth of the market is still hindered due to the high cost of implementing the correct equipment and processes.
The company said it is entering the cold chain market due to the strong growth of the biologics industry, whose high-value products often place added emphasis on proper, tightly-controlled storage environments. Maintaining a secure cold chain through the storage, handling and transportation of temperature-sensitive drugs assures product quality and integrity, benefitting patients and keeping manufacturers, hospitals and pharmacists in compliance with various laws, regulations, guidelines and codes.
Reed-Lane also says they have started to build a dedicated climate controlled secondary packaging suite adjacent to the new cold storage space. The suite will be optimized for kitting projects that will require cold storage, and is expected to be operational by the 3rd quarter of 2019.
Contract Pharma spoke with Reed-Lane’s VP of Sales & Marketing, Joe Luke, on the siginifgance of the new space and industry trends that led to the decision.
Contract Pharma: Can you give some specifics on the size and features of the new controlled cold storage space?
Joe Luke: The cold chain storage is large enough to hold up to 100 pallets, has the ability to maintain temperature from 2-8°C, and has 100% redundant refrigeration system. It is also connected to a backup power generator and is monitored 24/7 with an alarm system. Also installed is a dedicated climate controlled secondary packaging room. Located next to the cold storage unit, the room is used for labeling vials and ampules, then kitting them with literature and other components.
CP: Why the shift into cold storage space now, were there any industry trends that led to this decision?
JL: Reed-Lane decided to install a cold chain storage unit due to the strong growth of the biologics industry. The industry is trending towards more products packaged in vials which go into kits, or syringes. In the past, we had to pass on several packaging opportunities because they required cold storage.
CP: Do you see Reed-Lane further expanding into other new areas in the future, just like the move into the cold supply chain market?
JL: Reed-Lane continuously monitors trends in the industry and analyzes how these trends will affect our ability to service our customers and any potential customers.
CP: About how many more pharma companies will these new capabilities allow you to partner with or service?
JL: The new capabilities will allow us to partner with any pharmaceutical company which has a product which requires cold chain storage and packaging.
