The advent of new specialty drugs, including biologic drugs, will lead to revenue growth.
New York, NY (PRWEB) November 13, 2014
The Pharmaceuticals and Pharmacy Supplies Wholesaling industry has benefited from having an integral role in the pharmaceutical supply chain. For this reason, pharmaceutical wholesalers and self-distributing pharmacy chains (excluded from the industry) account for the vast majority of total pharmaceuticals distributed to pharmacies, as well as long-term and specialized healthcare facilities. According to IBISWorld Industry Analyst Sarah Turk, “Over the past two decades, pharmaceuticals have comprised one of the fastest growing components of spending within the healthcare sector. Thanks to the burgeoning elderly population's robust drug utilization rate, coupled with the advent of new drugs, many downstream markets have looked toward wholesalers to provide quick product turnaround.” Contributing to this trend, the uptick of new, biologic drugs, particularly cancer and immunosuppressant drugs, has stimulated demand for wholesalers.
Wholesalers able to monitor and regulate biologic drugs throughout the supply chain, by using temperature monitoring devices and tracking systems, have fared well over the past five years, during which industry-wide revenue grew slightly but steadily. Profit is anticipated to rise, thanks to wholesaler mark ups of biologic drug prices, which can be partly attributed to biosimilar drugs (generic biologic drugs) not being considered bioequivalent by Health Canada. “As a result,” says Turk, “biologic drugs have been slightly insulated from price-based competition from biosimilars, due to government regulations restricting the ability for pharmacies to substitute for biosimilar drugs without consulting a physician.”
Moderate revenue growth is forecast in the next five years, as the advent of new specialty drugs will lead hospitals and pharmacies alike to turn toward wholesalers to provide temperature controls and other supply-chain management services. The US Centers for Disease Control and Prevention estimates that $300.0 million in vaccines are destroyed each year due to improper storage and distribution, providing opportunities for wholesalers to implement more effective distribution strategies.
For more information, visit IBISWorld’s Pharmaceuticals and Pharmacy Supplies Wholesaling in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry distributes medicines, cosmetic products and personal-grooming products. This industry does not include manufacturers that sell medicines, equipment and supplies directly to hospitals or doctors' offices.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
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