A $48 million buildout of 27 temperature-controlled facilities spanning the Americas, Europe, and Asia is underway at UPS, as the company moves to accommodate surging demand for pharmaceuticals that must remain refrigerated throughout the supply chain.
The investment is aimed at strengthening what the company calls its cold-chain logistics network — the infrastructure required to move temperature-sensitive products without breaking the required storage conditions. Weight loss drugs such as Novo Nordisk's Wegovy and Ozempic, which must be kept refrigerated throughout delivery, are among the medicines driving demand for these services.
"Our global cross-dock facilities strengthen our end-to-end cold-chain capabilities to ensure critical treatments are delivered safely and reliably to patients around the world," Kate Gutmann, UPS president of international, healthcare, and supply chain solutions, said in a statement. "This effort — and all of our work in healthcare logistics — extends from a deep understanding that we're doing more than moving packages."
According to Growth Market Reports, the temperature-sensitive biologics segment is forecast to expand at a compound annual rate of 8.3% and hit approximately $39.1 billion in total market value by 2033. Cold-chain failures carry steep consequences: the World Health Organization has found that roughly half of all vaccines produced worldwide are lost each year, a meaningful share of which never reach patients due to temperature control breakdowns, according to CNBC.
UPS has been expanding its healthcare logistics footprint through acquisitions as well. Andlauer Healthcare Group, a Canada-based specialist in refrigerated pharmaceutical logistics, was absorbed into UPS's portfolio in a deal valued at $1.6 billion in cash, according to Freightwaves. Temperature-controlled ground transportation accounts for close to three-fifths of Andlauer's total revenue.
Healthcare has become a central pillar of UPS's broader strategic shift away from lower-margin parcel delivery. Speaking on the April first-quarter earnings call, UPS CEO Carol Tomé highlighted that UPS had grown its share of the healthcare market in each year going back to 2021, and that the opening quarter of 2026 was the first time the division had cleared $3 billion in revenue in a single quarter.
UPS reported first-quarter 2026 revenue of $21.2 billion, though net income fell to $864 million from $1.19 billion a year earlier, as the company continued restructuring its domestic delivery network. Tomé has framed the period as a transition toward higher-margin services, with healthcare at the center of that effort.
"These investments reflect our commitment to continue to align our leading end-to-end supply chain to protect innovative treatments and diagnostics, supporting better patient outcomes," UPS Healthcare President John Bolla said in a statement.