UPS Expands Clinical Life Science Opportunities With Marken Acquisition
By Ed Miseta, Chief Editor, Clinical Leader
UPS has entered into a definitive purchase agreement to acquire Marken, a global, privately-held provider of supply chain solutions to the life sciences industry. The transaction, which provides UPS with growth opportunities across the life sciences customer base, is expected to close by December 31, 2016, subject to customary conditions and regulatory approvals. Terms of the acquisition were not disclosed.
Clinical trial logistics is an area of growth for many companies involved in the life sciences, with PAREXEL, Catalent Clinical Supply, and others building up their capabilities to deliver to this sector. This is, in part, due to clinical trials requiring strict regulatory compliance, streamlined logistics services, and global reach. Marken currently operates a global network of clinical supply chain services to meet these increasingly complex demands. The acquisition of Marken follows multiple UPS acquisitions that have expanded the company’s healthcare logistics services portfolio.
“Healthcare logistics is a strategic market for UPS,” says Teresa Finley, chief marketing and business services officer for UPS. “Our acquisition of Marken strengthens our portfolio and demonstrates our commitment to customers. We plan to offer new solutions to our customers and generate further growth opportunities for UPS.”
Marken CEO Wes Wheeler notes his company is excited to join the UPS organization, citing UPS’s capabilities in mature markets as a key reason the merger will provide many opportunities for Marken to enhance its service offerings in clinical trial logistics. “With UPS, we will improve our efficiency, while continuing to provide our clients with the high-touch, personalized services that they have come to expect from us,” he says. Wheeler will continue to lead the Marken business, which will operate as a wholly-owned subsidiary of UPS.
Marken specializes in the collection and transportation of clinical trial material and investigational medicinal products to 49,000 clinical trial sites. It also ships biological samples from these sites to central laboratories. Rapid and on-spec delivery is a key success factor for both sponsors and patients, as these shipments are time- and temperature-sensitive. Marken has more than 650 employees with an asset-light operating structure and 44 worldwide locations, including 10 depots that are compliant with Good Manufacturing Practices (GMP).
“UPS is focused on the logistics complexity of clinical trials, and the acquisition fits well into our long-term growth plans in the biopharma segment,” adds Finley. “Marken’s significant industry expertise and flexible network, combined with UPS’s vast integrated global air and ground networks, will provide the life sciences industry with an attractive portfolio of global logistics options.”
The acquisition also fits in well with the array of specialized services for healthcare and life science companies that are available from UPS. In July, the company announced expanded logistics capabilities for clinical trials. Those capabilities included key investments in technology, temperature-control capabilities, and customer services. The modifications were put in place to help pharmaceutical companies and clinical investigators move sensitive materials and specimens globally. The company’s network includes temperature-sensitive storage and transportation (from ambient and controlled-room temperature, to frozen and cryogenics), 24-hour monitoring, and security.
John Menna, VP of strategy for Healthcare Logistics at UPS, notes those previously announced capabilities have cemented the role of UPS as a provider of critical logistics services in the clinical space, and the acquisition of Marken will further enhance those capabilities while building on the company’s global footprint.
UPS now has more than 100 healthcare-dedicated facilities with 60 GMP-compliant locations strategically positioned within global markets. Shippers have the ability to customize solutions from the UPS Temperature True, UPS Proactive Response, UPS WorldShip, UPS Quantum View, and other portfolios that leverage expertise in packaging, labeling, monitoring, and storage capabilities.
J.P. Morgan served as the financial advisor to UPS. UBS Investment Bank acted as the financial advisor to Marken.