Japan Life Science Industry Experiences Boom
TNT experiences dramatic double digit year-on-year growth following change in government regulation
The pharmaceutical and biotechnology market in Japan is experiencing significant growth. TNT, leading provider of global express and logistics services, and a specialist in life sciences logistics, has witnessed a dramatic year-on-year increase in business from the industry.
"TNT's business in Japan has grown significantly since the government relaxed data requirement rules for new drug registration. The clinical trial market was estimated to be worth more than S$27 million (¥2 billion) in 2004, but by 2010, it's expected to grow almost seven fold to S$180 million (¥13 billion)," said Mark Shorney, President, TNT Japan.
As a provider of express and logistics services for the life science industry, the demand for TNT's service is a good barometer of the industry. According to TNT, a significant portion of this growth has come from international Contract Research Organisations (CROs) which have set up branches in Japan.
The regulatory changes have enabled pharmaceutical companies to take advantage of CROs based in other countries to increase flexibility and efficiency as well as to lower the overall costs of research and development.
TNT revealed these findings at the "Drug Discovery and Development Summit", a leading pharmaceutical and biomedical industry event held in Japan. The rule change benefits businesses involved in the transportation of clinical trial data.
"The deregulation has certainly benefited the industry as a whole. The growth is not only coming from clinical trials, but also the broader biotech industry. Industry estimates indicate that the sector was worth S$14 billion (¥1,000 billion) in 2003 and will be worth S$346 billion (¥25,000 billion) by 2010. This is obviously a key opportunity for businesses involved in the biotech sector in Japan," he added. "TNT has a proven track record of providing specialist life science solutions, not only within the clinical trials space, but also handling temperature sensitive reagents and other diagnostic specimens."
As a specialist provider of innovative supply chain solutions for the life science industry, TNT has a suite of logistics services for the clinical trials market, known as ‘Clinical Express'. Clinical Express provides critical logistics support to transport diagnostic specimens and clinical and laboratory supplies in temperature-controlled conditions.
As a result, TNT this year has seen a first quarter growth doubling the business from the same period last year in its Clinical Express service.
With more than 12 years of expertise in clinical trial logistics, TNT is well-positioned to respond to this rapid market growth. TNT previously recognised the potential of the market in Japan and already has an established dedicated Life Sciences Centre of Excellence in Tokyo to cater to the growth. It has also expanded its network to handle clinical trial transportation from close to 2,000 clinical sites.
The company moves over 700,000 diagnostics specimens globally every year, and has a total of five Regional Life Sciences Centres of Excellence located in Singapore, Geneva, Edinburgh, Sydney and Johannesburg.
About TNT Express
TNT Express is the world's leading business to business express delivery company. The company delivers 3.5 million parcels, documents and pieces of freight a week to over 200 countries using its network of nearly 900 depots, hubs and sortation centres. TNT Express operates over 19,000 road vehicles and 43 aircraft and has the biggest door-to-door air and road express delivery infrastructure in Europe. The TNT Express website is: www.tnt.com/express.