Skycell Secures $35M Series C Funding & Enters Vaccine Distribution

SkyCell Secures $35 Million Series C Funding for Temperature-Controlled Pharmaceutical Shipping

SkyCell, a Swiss firm specializing in the development of intelligent containers for medicine and vaccine transport, has announced a new funding injection. Building upon a $62 million round finalized last year, the company has successfully raised $35 million in Series C funding.

Investment Details

This funding round comprises both equity and debt financing. Investors originate from the Middle East, including DisruptAD and the venture capital division of ADQ, a sovereign wealth fund based in Abu Dhabi.

SHUAA, a prominent UAE asset management and investment banking firm, also participated. Additionally, the investment includes contributions from China-based and Zurich-based family offices, alongside funding from Mobiliar, a leading Swiss insurance provider.

This latest round elevates SkyCell’s total funding to $133 million.

The Technology Behind SkyCell

SkyCell has engineered a shipping container designed to maintain precise temperature control, mitigate vibration, and incorporate sensors for continuous cargo status monitoring.

The primary objective is to minimize temperature fluctuations – potentially damaging deviations that can compromise drug efficacy – and prevent other forms of shipping-related damage.

Addressing Vaccine Waste

A 2005 World Health Organization report estimated that up to 50% of vaccines are lost due to factors including temperature control, logistics, and shipping challenges.

While the biopharmaceutical sector generally estimates lower failure rates – around 4% for established markets and 12% for emerging markets – SkyCell aims to significantly reduce these losses.

Independent audits confirm that SkyCell’s temperature excursion rate remains below 0.1%.

Expanding Partnerships and Capabilities

Previously, SkyCell collaborated with eight major pharmaceutical companies and was undergoing trials with seven others. The company now serves the majority of the top 20 pharmaceutical companies globally, though specific details remain confidential.

Prior to the COVID-19 pandemic, SkyCell facilitated the delivery of approximately 250 million vials of pharmaceutical products annually.

Adapting to mRNA Vaccine Transport

The company has redesigned its containers to accommodate the transportation of mRNA-based COVID-19 vaccines, as well as the necessary raw materials for their production.

These updated containers utilize dry ice to achieve the ultra-low temperatures – ranging from -80 to -60 degrees Celsius – required for vaccines like Pfizer’s, although this is not always a strict necessity.

Dry Ice Efficiency and Innovation

Dry ice is essential for ultra-cold vaccine shipping, with companies like UPS Healthcare increasing production to meet demand. SkyCell’s technology, however, utilizes significantly less dry ice compared to competitors.

The SkyCell container requires 100 kilograms of dry ice for approximately 120 hours of operation, with the capacity for extended storage through additional dry ice replenishment.

This represents a substantial engineering achievement, as competitors typically require 200 kilograms or more of dry ice.

SkyCell currently transports raw materials or vaccines for three leading COVID-19 vaccine manufacturers, though their identities remain undisclosed.

The company is actively involved in transporting raw materials from the factory for two of these manufacturers.

Expanding into Trucking Logistics

A significant development is SkyCell’s expansion into trucking services, complementing its existing air freight capabilities.

While vaccines often initially arrive in countries by air, trucks are frequently used to distribute them to central medical warehouses. Refrigerated trucks are ideal, but their availability is not always guaranteed, leading to the use of cold boxes and large-scale refrigerated haulers, as highlighted in a 2021 McKinsey report.

This expansion broadens SkyCell’s vaccine distribution network. The company is currently involved in European vaccine distribution for a major vaccine producer.

“The introduction of trucking services represents a major shift for our operations,” states Ettl.

Future Outlook and Industry Trends

While COVID-19 vaccine shipping will likely remain a component of SkyCell’s business, the company’s core focus extends beyond pandemic-related logistics.

Numerous pharmaceutical products, including cancer treatments and other vaccines, necessitate cold-chain handling.

The International Air Transport Association’s Center of Excellence for Independent Validators in Pharmaceutical Logistics projects that global sales of cold-chain drugs and biologics will exceed $440 billion by 2024, excluding COVID-19 vaccine expenditures.

Key Industry Trends

The industry is witnessing several key trends: increasing adoption of container reuse services, development of more recyclable shipping containers, and the integration of electronics for real-time shipment tracking.

SkyCell aligns with all these trends. The reusability of its containers is a key factor in securing pharmaceutical partnerships, and the company’s integrated sensors collect comprehensive data on every shipment.

Ettl expresses confidence in SkyCell’s ability to adapt to evolving industry demands and capitalize on the growing need for cold-chain solutions.

Notably, SkyCell has maintained a perfect record: no product has ever been lost during shipment in the company’s history.