Opportunity Europe

1
Opportunity Europe
Building a European platform
12-01 - 010121
2
Fundamentals

• EGA 2006 market review on average 50 all
  medicines dispensed to patients in Europe are
  generics. Market share by value 18
• Top 20 generic molecules 3.95billion Euro
• But unequal spread over countries.
• Greying population accross Europe.
• Need for sustainable healthcare systems.
• generics will build market share.
• Increased competition will force patented pharma
  to reduce prices.
• Indian pharma organic growth or acquisition will
  allow to take market share.

3
European Generics market
Room to grow
12-01 - 010121
4
Comparing selected generics markets (ega generics)
5
Generics on the Belgian market (sourcefebelgen)
6
Comprehensive analysis
7
EU Generics market

• Different penetration rates
• Different reimbursement systems
• Fragmented approval market
• Fragmented marketing effort?
• But what about logistics?

8
Asia Co case study
Previous set-up

• Fragmented deliveries by country or customer
• Multiple testing ulabs carriers
• SEA freight transhipped via Rotterdam or
  Southampton to Ireland for Batch release and than
  trucked to the destination country.
• No IT connectivity
• Limited control over the supply chain

09-07 - 040624
9
Asia Co case study
New set-up

• Warehouse located in the centre of the main
  business markets
• consolidated deliveries for multiple countries
  into Belgium, both for sea air. Sea freight
  arriving in Zeebrugge and Antwerp, airfreight
  landing in Brussels
• reduced amount of labs
• European SOPs
• IT interfaces with NYK
• Conditioned transport
• Full control till delivery

European Distribution Centre
09-07 - 040624
10
United Kingdom second largest pharmaceutical
producer in Europe
production value in million euro, 2003
Pharmaceutical production in UK 21,685 million
euro Pharmaceutical production in Belgium 4,245
million euro
Source European Federation of Pharmaceutical
Industries and Associations (EFPIA) The
Pharmaceutical Industry in Europe, Key data 2005
Update, p. 6
02-06 - 160302
11
UK production versus Belgian export

• UK produces 5 times more pharmaceuticals than
  Belgium
• BUT
• Belgium exports 1.3 times more pharmaceuticals
  than UK!

02-06 - 160303
12
Belgium largest exporter of pharmaceuticals
export in million euro, 2003
Pharmaceutical export from UK 17,234 million
euro Pharmaceutical export from Belgium 22,597
million euro
Source European Federation of Pharmaceutical
Industries and Associations (EFPIA) The
Pharmaceutical Industry in Europe, Key data 2005
Update, p. 14 Others Greece, Norway, Finland,
Portugal
02-06 - 160304
13
Belgium largest importer of pharmaceuticals
import in million euro, 2003
Pharmaceutical import into Belgium 23,216
million euro
Source European Federation of Pharmaceutical
Industries and Associations (EFPIA) The
Pharmaceutical Industry in Europe, Key data 2005
Update, p. 15 Others Greece, Norway, Finland,
Portugal
02-06 - 160305
14
Belgium, Europes largest distribution center

• Belgium is not only the largest exporter but
  also the largest importer of pharmaceuticals in
  Europe
• THUS
• Belgium is Europes largest distribution center
  for pharmaceuticals

02-06 - 160306
15
Pharmaceuticals Flanders and Ireland

• Some examples
• Ireland and Flanders a partnership of
  production and distribution
• Belgium imports about 60 of total Irish
  pharmaceutical exports

02-06 - 160309
16
Belgium the pharmaceutical distributor of Ireland
million euro
Belgian import of Irish pharmaceuticalsversus
total Irish export of pharmaceuticals
62
56
Belgium imports about 60 of total Irish
pharmaceutical exports
Source Irish exports Statistical Yearbook of
Ireland 2004, p. 286 Statistical Yearbook of
Ireland 2002, p. 280 Belgian imports Comext
Database Eurostat
02-06 - 160310
17
Production in Ireland Distribution in Flanders
Pfizer
Flanders 2 production sites 2 distribution centers
Ireland 5 production sites
Mechelen
New Logistics CenterMechelen (since 2006)
Brussels
European Logistics CenterBrussels Airport
02-06 - 160312
18
Production in Ireland Distribution in Flanders
Schering-Plough
Flanders 1 production site 1 distribution center
Ireland 3 production sites
Largest Production Plant in Europe
Heist-op-den-Berg
Bray
Boortmeerbeek
Avondale
New Logistics Center (since 2006)
Brinny
02-06 - 160313
19
Production in Ireland Distribution in Flanders
JohnsonJohnson
Belgium 6 production sites 1 distribution
center3 research centers
Ireland 1 production site
Janssen Pharmaceutica Production and Research
Center
Beerse
Geel
Mechelen
4 production plants
1 production site 2 research centers
Courcelles
New Logistics Center (since 2005)
Little Island Plant
02-06 - 160314
20
Logistic providers for the pharmaceutical sector
in FlandersNYK Logistics Belgium
NYK Logistics Belgium Keetberglaan 2 Haven 1089
B-9120 Melsele Belgium tel [phone] fax
32.3.570 69 12 Ann.dhondt_at_be.nyklogistics.co ww
w.nyklogistics.com
Antwerp
02-06 - 160317
21
Logistic providers for the pharmaceutical sector
in FlandersExcel Belgium
Exel Presence Belgium
Exel Belgium Life Sciences Logistics Office Weg
naar Zwartberg 237 B-3660 Opglabbeek Belgium
tel [phone] fax [phone]
www.exel.com/exel/home/regions/emea/belgium/en
One of Exels customers in Opglabbeek
(Belgium) Terumo www.terumo.co.jp
Exel Wommelgem
Exel Mechelen
Exel Opglabbeek
Exel Vilvoorde
Exel Tongeren
Exel Nivelles
6 Operating Sites 3 Technology 2 Retail 1
Health Care Airfreight - Seafreight Offices
in Zaventem, Deurne, Antwerp
02-06 - 160315
22
Logistic providers for the pharmaceutical sector
in FlandersDHL Solutions
DHL Solutions Eppegemsesteenweg 31-33 B-1850
Grimbergen tel [phone] fax
32.2.251.69.30 www.dhl.be
Grimbergen
02-06 - 160316
23
Logistic providers for the pharmaceutical sector
in FlandersBax Global

• Bax Global
• Antwerp Ocean Services
• Karveelstraat 5
• B-2030 Antwerp
• Belgium
• tel [phone]
• fax [phone]
• Brussels Airport
• Building 755
• B-1931 Brucargo
• Belgium
• tel [phone]
• fax [phone]
• www.baxglobal.com

Antwerp
Kortrijk
Brussels

• Kortrijk Transport Zone
• Transportcentrum LAR K25
• B-8930 Rekkem
• Belgium
• tel [phone]
• fax [phone]

02-06 - 160317
24
Logistic providers for the pharmaceutical sector
in FlandersTNT Logistics
TNT Logistics Zandvoortstraat 16 Industriezone
Noord II B-2800 Mechelen Belgium tel
32.15.28.89.00 fax [phone] www.tntlogi
stics.be
Mechelen
02-06 - 160318
25
Logistic providers for the pharmaceutical sector
in FlandersSomitomo Warehouse
Sumitomo Warehouse Sumitomo Warehouse
Europe Fotografielaan 37-39 B-2610 Wilrijk
(Antwerp) Belgium tel [phone] fax
32.3. 825.15.45 www.sumitomo-soko.co.jp
Wilrijk
02-06 - 160319
26
Logistic engineering companies for the
pharmaceutical sector in FlandersJ-Tec and
Katoen Natie
J-TEC Lieven Gevaertstraat 11 B-2950
Kapellen Belgium tel. [phone] fax
32.3.660.51.10 www.j-tec.com Daughter company
of Katoen Natie Van Aerdtstraat 33 B-2060
Antwerp Belgium tel [phone] fax
32.3.221.68.10 www.katoennatie.com
Kapellen
Antwerp
02-06 - 160320
27
Logistic engineering companies for the
pharmaceutical sector in FlandersEurinpro Belgium
Eurinpro Belgium Kasteel van Bever Boechoutlaan
221 B-1853 Strombeek-Bever Belgium tel
32.2.263.40.00 fax [phone] www.eurinpro
.com
Strombeek-Bever
02-06 - 160321
28
To contact

• Peter.verplancken_at_fitagency.be