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    Features

    Catering for the Complex

    The rapidly changing landscape of pharmaceutical packaging.

    Catering for the Complex
    Marcelo Cruz, Director Business Development and Marketing, Tjoapack11.17.20
    The pharmaceutical packaging landscape is changing fast. It’s rapidly expanding and growing in complexity as demand for safe and affordable pharmaceuticals grows worldwide.

    A number of market drivers are setting the pace for growth of the pharmaceutical packaging sector. Analysts at IQVIA predict that the $1.2 trillion value of the pharmaceutical industry in 2018 is set to increase to $1.5 trillion by 2023.1 The demand for packaging services and manufacturing capabilities is being driven by several new trends across the pharmaceutical and healthcare market including dose compliance, tracking and tracing and the increasing technical complexities being introduced to help make products more patient-centric.

    The introduction of new technologies is helping packaging specialists to introduce innovative solutions to meet rising market demand, as well as discover new ways to improve their operations and drive efficiencies across the supply chain. This article discusses the fast-changing market landscape and the key benefits of building strategic partnerships with contact packaging organizations (CPOs).

    Injectable and self-drug delivery
    One key area of growth for the pharma and biopharma market has been parenteral drug delivery and the introduction of new ways for patients to self-administer injectable formulations safely. Market analysts project the injectable drug delivery market to grow from $362.4 billion in 2016 to $624.5 billion by 2021 at a compound annual growth rate (CAGR) of 11.5% during the period.2

    The major factor responsible for driving growth in this market is the increasing use of biologics to fight rare and chronic diseases. These drugs are used in the management and treatment of diseases, including cancer and autoimmune disorders. The increasing prevalence of cancer and other rare and chronic diseases have resulted in increasing demand for monoclonal antibodies, which in turn is leading to the demand for biologics. Rising research and development activities in genomics alongside the emergence of technologically advanced genetic platforms, such as next-generation sequencing, have also majorly contributed to the market.

    To help ensure better patient access to these and future parenteral drugs developers have been busy introducing new technologies to support self-administered injections in a non-clinical environment.

    Pre-filled parenteral administration on the rise
    Fortune Business Insights’ report, “Prefilled Syringes Market Size, Share & Covid-19 Impact Analysis,” projected the global prefilled syringes market is expected to reach $10.57 billion by 2027, climbing at a compound annual growth rate of 10.5% during the forecast period.3

    The rising shift towards using prefilled syringes to deliver biologics and biosimilars will continue to drive market demand. Fortune analysists explain that the continued application of biologics in targeting diseases with limited treatment options including cancer, autoimmune disorders and other genetic or hereditary diseases, will also be in high demand.

    These factors are accelerating development of pre-filled syringes, autoinjectors, injector pens and more, and as a result, demand for packaging vendors who can manage the kitting and assembly required before medicines reach patients.

    Expert packaging capabilities
    Traditionally, packaging was viewed as an extension of manufacturing operations and consequently, many contract development and manufacturing organizations (CDMOs) do offer integrated packaging operations to extend their internal end-to-end manufacturing and commercialization solutions for customers. However, with demand rising and more complex products entering the drug pipeline, companies are not only struggling with capacity, they’re also increasingly struggling to cater for the specialized packaging capabilities and dedicated capacity required to meet demands.

    As a result, CPOs are taking a more prominent role in the pharmaceutical supply chain as the demand for economic, efficient packaging services and tailored solutions to meet complex product requirements continues to grow. Grand View Research projects the global pharmaceutical packaging market to reach $188.79 billion by 2027 at a CAGR of 8.5% over the forecast period.4 

    Another trend accelerating the packaging landscape is the increasing demand for patient-centric, personalized medicines and therapeutic modalities. Because packaging plays such a central role in drug delivery and patient compliance, the demand for advanced, flexible pharmaceutical packaging solutions and services will be equally high for decades to come.

    Pick packaging partners prepared for performance
    CPOs inherently have operations entirely focused on delivering this critical aspect of the drug supply chain. Possessing in-depth knowledge of market requirements and regulatory compliance allows CPOs to tailor better more effective solutions to meet market and customer-specific needs. Experience and expertise are how most CPOs can add value into their contract partner’s entire product life cycle.

    Whether distributed in vials, combinations devices or in complex personal medicine kits, the demand for experienced CPOs ability to package these products and adopt a solution-focused approach to overcome potential product packaging complexity has never been greater. As with the contract services industry in general, CPOs are evolving, quickly moving from transactional, contract service providers to more strategic and integrated supply chain partners.

    Supply chain connector, value-chain defender
    In light of global regulatory compliance, packaging plays a crucial role in connecting the final and perhaps most important links in the entire pharmaceutical supply chain. Because of their focus on supporting packaging’s value chain, CPOs are providing more strategic support than ever before, well beyond the traditional primary and secondary packaging operations of the past.

    This will likely spur continued development of the services and capabilities offered by today’s dedicated CPOs to include a broader range of services such as quality assurance, complex assembly, global cold-chain custody logistics and international regulatory support.

    Postponing supply chain inefficiencies
    One of the increasingly complex packaging requirement CPOs are now handling is meeting the fluctuations in market demand more efficiently. For example, by pausing the last production step before a product is finalized for distribution, or made market specific, can help manage supply and demand variables more effectively.

    Leading CPOs are developing their operations to deliver solutions to help pharma with these and other supply chain inefficiencies. For example, CPOs have begun to introduce the concept of postponement packaging as a way to help drug manufacturers reduce the costs and delays related to forecasting inaccuracies and the resulting downtime and packaging rework required.

    CPOs traditionally provide bulk packaging services, e.g., the primary and secondary packaging of large volumes of pharmaceutical products, prepared for distribution to a specific market. The product is then shipped to its intended destination, but likely stored in a warehouse until it is needed. Although widely accepted, this approach has the potential to introduce avoidable costs, waste and further operational inefficiencies.

    Volatile demand for example can stall distribution and generate high inventory costs. That pain often spreads across multiple locations and can also mean repackaging work across multiple lines all in an effort to make a supply of product intended for one market, suitable for another.

    Late-stage flexibility equals supply chain efficiency
    To support pharma and address risk and inefficiencies in the supply chain, CPOs started exploring the idea of late-stage customization as a way to implement an effective postponement strategy.

    Rather than keeping inventories of pre-packaged products, blank product packaging components such as blister packs, boxes and product safety information are stored centrally in one location.

    When demand rises in one market, the packaging can be printed, matched to products and prepared just-in-time to accommodate local language and regulatory requirements. Well-ordered postponement operations, equipped with the right technical capabilities, can usually ship product within hours of receiving the order.

    Postponement packaging also has the potential to help pharma transform the way healthcare is delivered to patients. Personalized, patient-specific packaging is coming, and postponement could allow companies to quickly and efficiently respond to very specific needs. Furthermore, drug products could potentially even be delivered direct to the patient, ultimately streamlining the supply chain.

    Postponement packaging can drive inefficiencies out of the supply chain and ultimately reduce waste and costs. Given the variety of regulations, particularly in Europe, the advent of serialization and languages across international boundaries, postponement may be the best option for drug companies serving multiple major international markets with multiple and complex products.

    Companies who take a proactive approach to developing their packaging solutions with third party providers and incorporate new approaches into their operations will inevitably find themselves in a better position when these new digital processes become more widely adopted. It is important that the industry continues to drive these developments forward in order to fully realize the broader impact on supply chain management.

    Final impressions
    Engaging competent CPOs as strategic outsourcing partners allow companies the best opportunity to optimize their operations and ultimately benefit from years of packaging expertise and experience. This becomes even more apparent when it comes to managing the complexities associated with combination products and medical devices reaching markets and patients today.

    Access to this kind of expertise, along with fresh innovative supply chain management approaches such as postponement packaging, will likely help pharma and biopharma companies become better at ensuring supplies of needed medications reach patients more reliably. 

    References
    1. https://pharmaceuticalcommerce.com/business-and-finance/global-pharma-spending-will-hit-1-5-trillion-in-2023-says-iqvia/ 
    2. https://www.marketsandmarkets.com/Market-Reports/injectable-drug-delivery-market-150.html
    3. https://www.fortunebusinessinsights.com/industry-reports/prefilled-syringes-market-101946
    4. https://www.grandviewresearch.com/press-release/global-pharmaceutical-packaging-market


    Marcelo Cruz is Director Business Development and Marketing at Tjoapack. With over a decade of experience in the pharmaceutical industry, and over 15 years of driving global strategic marketing and sales, Marcelo is responsible for the overall business development strategy and organic growth activities at Tjoapack. In his role he also leads the development and implementation of inbound and outbound marketing strategies to accelerate lead generation and drive the wider commercial strategy for the business.

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