Analysis Says Profits Will Remain Weak for Pharma - Modern Distribution Management

Log In

Analysis Says Profits Will Remain Weak for Pharma

Today Drug Channels Institute analysis of the dynamic prescription drug distribution industry.
Author
Date

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/.

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.