Today Drug Channels Institute, a management educator for and about the pharmaceutical industry, released its exclusive, in-depth analysis of the dynamic prescription drug distribution industry. Drug Channels Institute’s new 2017–18 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors reveals how a deteriorating health care business environment culminated in significant profit declines and loss of stock market value.
“We project that U.S. drug distribution revenues at the Big Three public wholesalers—AmerisourceBergen, Cardinal Health, and McKesson—will reach $425 billion in 2017, a 4.5 percent increase from the 2016 figure.” said Drug Channels Institute CEO Adam J. Fein, Ph.D., the study's author and a widely regarded expert on pharmaceutical economics and the drug distribution system. “This is the slowest revenue growth since 2013. We also estimate that core U.S. drug distribution margins peaked in 2015 and have declined ever since.”
“The pharmacy market’s evolution will continue to pressure wholesalers’ sell-side margins for brand-name drugs," said Fein. "Wholesalers’ profits from generics drugs have tumbled due to generic deflation and pharmacy negotiations. As we predicted, specialty biosimilar drugs have not delivered significant profits for wholesalers.”
These findings are among the many insights and trends in this report, now in its eighth edition. With 117 proprietary charts, exhibits, and data tables, it remains the most comprehensive resource for analyzing the pharmaceutical distribution industry’s economics, market structure, growth rates, forces of change and interactions with the U.S. healthcare system.
To purchase and download the new report, visit
http://drugchannelsinstitute.com/products/industry_report/wholesale/.
