North America Pharmaceutical Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

North America Pharmaceutical Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The North American Pharmaceutical Logistics Market is expected to witness a CAGR of around 3% during the forecast period.

• The whole US pharmaceutical supply chain for medication development and production is connected by North America. The platform for the event covers APIs, contract services, the manufacture of bespoke chemicals, pharmaceutical packaging, machinery, biopharmaceuticals, final dosages, and formulations.
• Manufacturing pharmaceutical medications to diagnose, cure, treat, or prevent diseases is how the pharmaceutical sector is best recognized. The pharmaceutical industry is a sizable one, with a global market worth more than one trillion dollars - Pfizer, Merck, and Johnson & Johnson from the United States, Novartis and Roche from Switzerland, Sanofi from France, and others are the most well-known top global pharmaceutical corporations. The pharmaceutical logistics business is growing quickly due to the rising global demand for pharmaceutical medications. One of the major worldwide submarkets for pharmaceuticals is found in North America and Europe.
• Travel restrictions, quarantines, and aircraft cancellations were brought on by the COVID-19 pandemic. The protracted lockdown hindered logistics operations across the world and affected the supply chain. Contrary to large companies that were faltering as a result of the pandemic, sectors including pharmaceuticals, e-commerce, and necessities saw development. E-commerce and internet services expanded, enhancing the B2B logistics sector. Drugs and equipment were imported and exported widely during the pandemic, which supported the market's expansion.

In 2021, North America accounted for 49.1% of world pharmaceutical sales compared with 23.4% for Europe. According to IQVIA (MIDAS May 2022), 64.4% of sales of new medicines launched during 2016-2021 were on the US market, compared with 16.8% on the European market (top five markets). About 45% of the world's pharmaceutical market and 22% of its manufacturing are accounted for by the US. In 2022, US pharmaceutical production and sales were strong due to the ongoing global immunization campaign and the accumulated demand for both necessary and optional medical procedures. In 2021, brand-name medication companies' margins surged, creating a robust cash flow. Despite rising sales, wholesalers and distributors continue to operate on low-profit margins.

While immunizations will be a major factor in the sector's growth in 2023, the need for drugs will increase in the mid-and long term due to the aging population. Future expansion opportunities for the sector are further bolstered by the Supreme Court's ruling supporting the Affordable Care Act (Obamacare).

A deal has been reached by GlaxoSmithKline PLC to buy Sierra Oncology Inc., a biopharmaceutical business that specializes in targeted treatments for the treatment of rare kinds of cancer, for USD 55 per share of common stock in cash, or roughly USD 1.9 billion (GBP 1.5 billion) in total equity. The shares of Sierra Oncology that are still outstanding will be canceled and converted into the right to receive USD 55 in cash per share under the terms of the agreement, which states that the purchase will be accomplished through a one-step merger. The price per share was higher by about 39% compared to Sierra Oncology's closing stock price on April 12, 2022, and by about 63% compared to Sierra's volume-weighted average price (VWAP) for the previous 30 trading days. The Board of Directors of Sierra Oncology unanimously advised Sierra's stockholders to support the merger's approval. Additionally, Sierra Oncology stockholders, who own around 28% of the company's outstanding shares, decided to vote their shares in favor of the merger's ratification.

A commercial-stage biopharmaceutical company named Biohaven Pharmaceutical Holding Company recently announced plans to acquire Channel Biosciences, a Knopp Biosciences LLC subsidiary, and its Kv7 channel targeting platform. This will expand Biohaven's expanding neuroscience portfolio by incorporating the most recent developments in ion-channel modulation.

A portfolio firm of Novo Holdings and a clinical-stage biotechnology company, Syndesis Therapeutics SA, was acquired by AbbVie.

The pharmaceutical logistics market in North America has a lot of participants and is quite fragmented and competitive. The demand for pharmaceutical logistics service providers has expanded along with the rise in pharmaceutical sales globally. In the upcoming years, the market for logistics service providers is anticipated to expand quickly. Deutsche Post DHL, FedEx, Kuehne + Nagel International AG, United Parcel Service Inc., C.H. Robinson Worldwide Inc., CEVA Logistics, DB Schenker, Agility Logistics, Air Canada, VersaCold Logistics Services, Expeditors International of Washington Inc., Penske Truck Leasing Co. LP, and Marken are a few of the leading players currently operating in the market.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support