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UPS Acquires European Pharmaceutical Logistics Company CEMELOG Moving Closer to Pharmacy Benefit Management Business Models

Posted Apr 25 2013 3:42pm

UPS is getting closer to being a Pharmacy Benefit Manager or Tactical Partner as when you look at how they are filling orders from medical devices and the IT Infrastructure they presently have in house, well it’s just moving that way.  A ways back I was talking to a UPS executive and I mentioned that some day they just might be the end PBM and you can see the logistics patterns and technology moving that way.  With on premise Software As a Service Capabilities the data is there and again it’s how this will develop.  None of us really know for sure in 5 years what all this will exactly look like…so if they are already in the distribution end of it, you just don’t know who will buy who anymore in the big corporate conglomerates. 

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So will they own somebody like Express Scripts someday?  Again that’s putting the question out there in a big way and there’s more data action of course coming from other areas too..so just thinking out loud a little bit today.  The same could be said for FedEx…we just don’t know but indicators kind of point that way.  Here’s a post from the middle of 2012 where I’m kind of asking the same types of questions.

UPS Healthcare Fulfillment Centers Continue to Grow And What Effect Could This Have on the Future Further Changing the Pharmacy Benefit Business?

A couple more back links here with some of the changing landscapes of logistics and pharmaceuticals.  The facilities are being built by UPS so no white elephant here by any means.  You can view more of the IT capabilities of CEMELOG here.

UPS Expanding Healthcare Focus With Giant Warehouses for Temperature Sensitive Drugs and Vaccines
UPS to spend $100 million on 4 New Global Distribution Centers To Serve Biotech, Pharma and Medical Device Companies

Logistics was my former life so I have little knowledge here having called on pharmaceutical giants in my past as well. I saw all those truck in the video and it started reminding me of Yellow Freight and FedEx and the big warehouses of the drug company clients and my short stint as a facility manager years ago:)  How many pounds per man hour is that facility producing and where’s those load racks:)

Don’t pay too much attention to me though (grin)..I just think this way and with my logic and back in 2009 I also said that running HHS would morph into an 80% IT type of job too ..think we are there yet..pretty darn close I think.  BD


As a part of UPS’s global healthcare growth strategy, UPS announced today that it will acquire Hungarian pharmaceutical logistics company, CEMELOG. Based outside of Budapest, CEMELOG has been offering customers across central and eastern Europe tailor-made healthcare logistics solutions for over a decade, and serves some of the most recognized healthcare brands in the world.

The acquisition will further strengthen UPS’s healthcare presence in Europe with regional expertise and services. It also will add three new facilities to UPS’s dedicated global healthcare network, bringing our total number of healthcare facilities to 41. 

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