Japan Characteristics in Healthcare Logistics

Japan, a global leader in cutting-edge innovation, plays a significant role in the pharmaceutical market, with its pharmaceutical export industry set to exceed 54 billion US dollars by 2031. The podcast explores the role of international carriers like ANA and 3PL players such as Nippon Express in the Japanese life science market.

Join Frank Van Gelder (Secretary General of Pharma.Aero) and his guests

• Masahiko Takahashi, Vice President Global Marketing of ANA Cargo 
• Eddy Coopmans, Senior Healthcare Manager, Nippon Express Belgium 

"Sea transportation is dominant in terms of weight, accounting for almost 80%, but in terms of value, air import and export account for over 86% of import and export in Japan."

"The demand for CGT products is increasing in Japan, with the gene therapy market projected to increase 20 times larger in 15 years starting from 2020."

"We have been strengthening our logistics contribution to the healthcare industry as a priority industry, focusing on medical devices and pharmaceuticals, and aiming for global expansion and organization development in the life science field."

Discussions revolve around the importance of air transport in the pharmaceutical industry, the challenges posed by evolving healthcare products like ATMP, and the necessity for global collaboration to enhance supply chain operations. ANA's focus on CEIV Pharma certification and advancements in pharmaceutical transportation showcase its proactive approach.

Nippon Express emphasizes the significance of end-to-end visibility and the need for innovative distribution models to meet the rising demand for cell and gene therapy products. 

The direct air corridor between Belgium and Japan emerges as a crucial link, facilitating swift and secure transportation of healthcare products.

Join us as we uncover the intricate ecosystem of the life science industry and the indispensable role of logistics and transportation in shaping its future. 
Stay tuned for more engaging conversations on "Insights" by Pharma.Aero.

Transcript

Frank Van Gelder, Pharma.Aero: Good day everyone and welcome to this Pharma.Aero podcast. Today with me I have two very important guests, Mr. Masahiko Takahashi, Vice President of Global Marketing of ANA Cargo and Eddy Coopmans, Senior Healthcare Manager from Nippon Express Belgium. 

The life science manufacturing market in Japan is a dynamic sector at the forefront of cutting-edge innovation. Its commitment to research and development, coupled with a skilled workforce, positions it as a global leader in the field. Based on recent reports, Japan's pharmaceutical export industry market was valued at US dollars 31.74 billion in 2022 and is projected to reach a market size of close to 54 billion US dollars by 2031. That's a very big exponent of the market in Japan. 

So, gentlemen, welcome to this podcast! My first question for you both, and I would like to start with you Mr. Takahashi, how important is the value of the Japanese life science market position and development for both an international carrier, such as ANA, and of course an international or 3PL players such as Nippon Express?

 Masahiko Takahashi (MT): Japan is a major importer of pharmaceuticals and has an increasing aging people. Japan is a country that imports almost 70 % of its pharmaceuticals. Geographically, Japan is an island nation. Import and export can’t be transported by land and must be transported by air or sea. Sea transportation is dominant, in terms of weight, accounting for almost 80%, but in terms of value is reversed, with air import and export accounting for over 86 % of import and export. As an airline company, it's an advantage in transportation, where speed is a requirement to maintain its quality, such as temperature-controlled products. 

Frank Van Gelder: Very interesting. So, Eddy, if you're here, there's a lot of value in air transport, so it clearly underlines the question: what is your vision as a 3PL company on this? 

Eddy Coopmans (EC): We have been providing logistic services in the life science field with a focus on medical devices for some time. In our corporate philosophy, we think it is important to contribute to society and a fruitful future through logistics. We have been strengthening our logistics contribution to the healthcare industry as a priority industry. And in the latter of 2010 years, we began to strengthen our business in pharma in addition to medical devices. In order to evolve as a global company, it is necessary to strengthen our organization globally. And we have positioned the development of a logistics business in the life science field, which has an industrial structure centred in Europe and the U.S. as the most important objective for our company. 

FVG: Listening to what you said, Mr. Takahashi, on how important import-export is and how dependent you are on imports for a growing older population, I think international collaboration for Japan is pivotal. So therefore, what is, in your opinion - and I look at you Eddy -, crucial to align the latest developments within the life science industry and the supply chain and logistics stakeholders like yourselves? And is there a need to canvas your business development strategies to a wider global approach? 

EC: In the life science industry, the globalization of supply chains has progressed, due in part to the sophistication of manufacturing technologies and product development techniques. On the other hand, pharmaceuticals are subject to legal restrictions, even in logistics. Japan has also issued GDP guidelines in reference to other countries, but they are not legally binding. And there is a gap in the level of quality control compared to Europe and the US. While we would like to centralise quality control by taking a global approach, the gap in legal constraints is hindering this effort and it is necessary for Japan to fill this gap. It is difficult for logistics providers to solve this problem alone, but we believe it is important to address this issue in cooperation with pharmaceutical companies. 

FVG: Very interesting, so more international collaboration is needed. Of course, as an airline and an international network, I think international collaboration is important. Mr. Takahashi, what is your view on this? 

MT: In Japan, GDP is only as a guideline, not as a regulation. While it is a legal requirement in Europe, ANA believes that we should provide services which is aligned to the Maintain Standard 2070. We became the first Japanese airline to obtain CEIV Pharma certification and ANA also recognized the importance of expanding more globally and has been involved in the Pharma.Aero since 2021. We have been able to grasp the latest trends and developments in the industry. 

FVG: Looking at the market today, new and challenging developments in healthcare are coming, and very interesting developments. These developments such as ATMP, or Advanced Therapy Medicinal Products, and Cell and Gene are definitely products that will completely redesign the current modus operandi of supply chain and logistics companies. How in particular do you prepare yourself for this, looking at an airline, Mr. Takahashi? 

 MT: The demand for CGT products is increasing more and more in Japan, and the volume of the shipments is also on the rise. According to an analysis published by the Japanese government, the gene therapy market is expanding to increase 20 times larger in 15 years, starting from 2020. In preparation for this trend, ANA began offering Prio Pharma Quick Care, this is the product name,   pharmaceutical transportation product like a CGT-related product in April 2024. In transportation, careful handling and traceability are especially important for the airline since the contents never be replaced. And also we think the important point is training. We train personnel with expertise and skills internally to ensure stable quality transportation. 

FVG: Eddy, listening to ANA, they're preparing themselves, right, for the coming cell and gene therapy training. The market grows 20 times in the next year, so as a 3PL service provider, how are you looking at cell and gene therapy? 

EC: New product lines are increasing the diversity of temperature control. Therefore, we believe that improving end-to-end visibility and developing passive containers is a minimum requirement. For example, in the field of ultra-low temperature transportation, we have a partnership agreement with Cryoport, a pioneer in this field, and the Nippon Visibility Tracking System is in operation as an end-to-end visibility tool. However, the end-to-end visibility improvement is very difficult to achieve because the distribution model is very complex and involves many parties, including wholesalers, manufacturers and dispensing pharmacies. We are considering the development of a new distribution model. We have also been engaged in clinical trial transportation in Japan for some time and the basic infrastructure for this field is in place. 

FVG: Gentlemen, Belgium and Japan are strongly linked and in profile often seen as similar countries in the development of cutting-edge life science products. How important for you, Eddy, is a direct air corridor between these two countries? 

EC: The biggest advantage is that direct flights allow you to travel between the two countries in the shortest possible time. In addition, from the perspective of cargo transportation, the number of times the cargo is touched is minimised reducing the risk of damaged products. NX Belgium operates direct flights from Brussels to Narita based on the Belgian and Japanese philosophy that quality matters. Japan is Nippon's home country and we have a well-established system for handling pharmaceuticals with experienced staff and extensive equipment. In Belgium, as in Japan, Nippon Belgium has experienced and trained staff, has appropriate processes in place, and handles healthcare products based on tailor-made solutions for each customer. 

FVG: Very interesting to hear, Mr. Takahashi, you fly between Brussels and Japan, so what is your vision of this? 

MT: We understand that Belgium encourages research and production of bioscience products, especially the biopharmaceutical addition strategies. Direct flight between Belgium and Japan are very important in terms of fulfilling our social responsibility to maintain logistics from Belgium, which is a major supply centre and hub for pharmaceutical products worldwide. And we have continued to maintain flights even during COVID-19 as much as possible. As the only airline offering direct flight between Belgium and Japan, we will continue to fulfil our mission. 

FVG: Gentlemen, thank you very much for being here, Mr. Takahashi, Mr. Coopmans, for being part of our podcast, Pharma.Aero. And thank you, dear listeners, for being there and listening to our podcast. Until the next time.