DHL acquips pharmaceutical logistics CryoPDP for $195 million
Freight forwarding giant DHL Group announced Monday that it has agreed to acquire Nashville, Tennessee-based CryoPDP, a specialty Courier company that provides logistics services for clinical trials, biopharmaceuticals, and cell and gene therapies, for $195 million.
Industry experts said the healthcare logistics market size is expected to grow from $130 billion in 2023 to $152 billion next year as the aging global population requires more drugs and biomedical products to deal with chronic diseases.
In 2024, DHL's life sciences and Healthcare division contributed more than €5 billion ($5.4 billion) in revenue to the group, where DHL is headquartered in Bonn, Germany.
CryoPDP specializes in white glove delivery services for the pharmaceutical and bioscience sectors. The company operates in 15 countries and handles more than 600,000 shipments per year for customers and patients in more than 135 countries.
DHL's resources and global parcel network will help CryoPDP tap into healthcare growth markets in Asia, Europe, the Middle East and Africa, the companies said. Under the protection of DHL, CryoPDP will be able to better leverage the Global air freight capabilities of DHL Express and DHL Global Forwarding to accelerate delivery.
A Cryoport representative said via email that DHL will acquire the company from Cryoport Inc. Acquired CryoPDP, which also has other business units involved in supporting the temperature control supply chain segment. The company expects the deal to close in the second or third quarter, subject to regulatory approval.
Jerrell Shelton, CEO of Cryoport, said in a press release: "We are very pleased to have established a trusting relationship with DHL Group. Together, we will bring an enhanced set of supply chain solutions to meet the critical supply chain needs of companies and patients."
The acquisition is in line with DHL's strategy to become a major player in healthcare logistics by 2030, with an extensive temperature control network, first - and last-mile specialist express coverage, and an integrated service offering.
DHL said the integration of CryoPDP will also save on shipping costs per unit and improve the overall service of its specialty pharmaceutical logistics business.
Healthcare logistics is also an area of increasing focus for fedex and UPS. Atlanta-based UPS said last year it plans to double healthcare logistics revenue to $20 billion by 2026 through organic growth and acquisitions. In January, the company completed the acquisition of Frigo-Trans and its sister company BP, which provides temperature-controlled warehousing and transportation services to pharmaceutical and biotech companies in Europe. Fedex has about $9 billion in annual healthcare revenue and is beefing up technology capabilities to help track and monitor high-value life science shipments that are sensitive to temperature.
Industry experts said the healthcare logistics market size is expected to grow from $130 billion in 2023 to $152 billion next year as the aging global population requires more drugs and biomedical products to deal with chronic diseases.
In 2024, DHL's life sciences and Healthcare division contributed more than €5 billion ($5.4 billion) in revenue to the group, where DHL is headquartered in Bonn, Germany.
CryoPDP specializes in white glove delivery services for the pharmaceutical and bioscience sectors. The company operates in 15 countries and handles more than 600,000 shipments per year for customers and patients in more than 135 countries.
DHL's resources and global parcel network will help CryoPDP tap into healthcare growth markets in Asia, Europe, the Middle East and Africa, the companies said. Under the protection of DHL, CryoPDP will be able to better leverage the Global air freight capabilities of DHL Express and DHL Global Forwarding to accelerate delivery.
A Cryoport representative said via email that DHL will acquire the company from Cryoport Inc. Acquired CryoPDP, which also has other business units involved in supporting the temperature control supply chain segment. The company expects the deal to close in the second or third quarter, subject to regulatory approval.
Jerrell Shelton, CEO of Cryoport, said in a press release: "We are very pleased to have established a trusting relationship with DHL Group. Together, we will bring an enhanced set of supply chain solutions to meet the critical supply chain needs of companies and patients."
The acquisition is in line with DHL's strategy to become a major player in healthcare logistics by 2030, with an extensive temperature control network, first - and last-mile specialist express coverage, and an integrated service offering.
DHL said the integration of CryoPDP will also save on shipping costs per unit and improve the overall service of its specialty pharmaceutical logistics business.
Healthcare logistics is also an area of increasing focus for fedex and UPS. Atlanta-based UPS said last year it plans to double healthcare logistics revenue to $20 billion by 2026 through organic growth and acquisitions. In January, the company completed the acquisition of Frigo-Trans and its sister company BP, which provides temperature-controlled warehousing and transportation services to pharmaceutical and biotech companies in Europe. Fedex has about $9 billion in annual healthcare revenue and is beefing up technology capabilities to help track and monitor high-value life science shipments that are sensitive to temperature.
