FedEx Corp. on Thursday (NYSE: FDX) opened its first European Life Science Center, with capabilities to receive, store, kit, pick, pack and ship health care products.
The state-of-the-art cooling facility in Veldhoven, Netherlands, offers an end-to-end supply chain solution for temperature-sensitive medical storage and transportation, according to a news release from the company. This enhances patient care by the pharmaceutical, clinical and biologics industries.
“As global demand for healthcare continues to rise, having a robust logistics solution is crucial for the safe, timely, and efficient delivery of medicines, clinical trials, and biological products,” said Marius Penninks, vice president of ground operations at FedEx Benelux, in the release. “This new Life Science Center positions us perfectly to be the vital link in the medical transport supply chain, facilitating the timely delivery of care to patients.”
The specialized, roughly 11,000-square-foot warehouse offers four temperature-controlled rooms and freezers for temperatures ranging from minus 112 degrees Fahrenheit to 77 degrees Fahrenheit. It is monitored 24/7 and each temperature zone has its own alarm system. The facility includes specialized packaging, proactive monitoring solutions and services such as labeling and reverse logistics.
Location matters
The Life Science Center in Veldhoven is a Good Distribution Practices (GDP)-licensed facility. It is the sixth of its kind, after those in Memphis, Tennessee; Mumbai, India; Singapore; Seoul, South Korea; and Tokyo. It is strategically located in reach of Europe-based pharmaceutical, biotech and life science industries.
Veldhoven is in the Brainport Eindhoven region, which received a 2.5 billion-euro government investment through Project Beethoven for the benefit of the tech industry, including investments in infrastructure, housing and education. FedEx states these investments are expected to give a boost to startups in the field of innovative technology and biotech sciences.
Growing health care market
The news release cites a 2022 Grandview Research analysis, which valued the health care logistics market at $67 billion to $90 billion, driven by rising demand for generic and branded pharmaceuticals. This growth has increased the need for storage facilities to maintain product efficacy and ensure efficient distribution to distributors and retailers.
The opening of the center marks a milestone in the company’s end-to-end services. Having the temperature-sensitive technologies at its disposal in Europe lets FedEx tap into this fast-growing vertical market in the pharmaceutical and clinical industry in the region, according to the company.
The Grandview Research analysis found that Europe accounted for a pharmaceutical logistics market share of over 36.65% in 2023 and is estimated to expand at a significant growth rate from 2024 to 2030. Specific countries expecting to see growth in these markets include Germany, the United Kingdom, France, the Nordic states and others.
Growing production and demand for several categories of pharma products such as over-the-counter medicines in the domestic region has also helped boost market share.
New health care leader
The new facility opened just two days after FedEx appointed longtime executive Nick Gennari as president of health care. According to news release, the former senior vice president of sales assumed leadership responsibilities for the health care vertical and began serving as president for global health care on Tuesday.
“FedEx is making supply chains smarter for everyone – including pharmaceutical, global clinical trials, and medical device shippers,” said Brie Carere, executive vice president and chief customer officer, in the news release. “I am confident Nick’s extensive expertise positions FedEx to continue delivering unmatched global services, end-to-end solutions, and scalability to healthcare customers of all sizes.”
Gennari joined FedEx in 1992 as an account executive. Throughout his tenure with the company, he has held numerous sales leadership roles in the U.S. and internationally with a focus across many areas, including health care, aerospace, industrial and high-tech verticals. Most recently, he was responsible for overall sales execution and the long-term strategic direction of Global Sales’ health care and commercial teams.
“Today, healthcare customers expect end-to-end solutions, supply chain insights, and quality oversight to support the day-to-day movement of their shipments,” Gennari said in the release. “With recent enhancements, FedEx is exceptionally well positioned to meet and exceed those customer needs.”