New Drug Channels Institute Study Predicts Further Profit Challenges for U.S. Drug Distribution Industry

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DCI releases tenth edition of its comprehensive report on the U.S. drug distribution industry

The 2019–20 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors

Consolidation in the pharmacy and PBM industries is challenging wholesalers’ profits.

Today Drug Channels Institute (DCI), a leading management educator for and about the pharmaceutical industry, released its exclusive analysis of U.S. prescription drug distribution channels. DCI’s new 2019–20 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors delves into the business operations of the Big Three public drug wholesalers—AmerisourceBergen, Cardinal Health, and McKesson.

“U.S. drug distribution revenues at the Big Three companies continue to grow faster than the overall industry, though profits have not kept pace,” 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. “We project that their revenues will reach $481.7 billion in 2019, a 5.2% increase from the 2018 figure. However, gross profits will decline for the fourth year.”

Fein adds, “Consolidation in the pharmacy and PBM industries is challenging wholesalers’ profits. However, the market for provider-administered biosimilar drugs has reached an inflection point, which should benefit wholesalers in coming years.”

These findings are among the many insights and trends in this highly respected report, now in its 10th edition. With 136 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.

The 2019-20 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors provides a thorough analysis of each of the Big Three public wholesaler’s business segments and underlying profitability, based upon DCI’s proprietary economic models. A new section reviews the financial factors that determine executive compensation at each of the three companies. The report also analyzes crucial healthcare trends affecting wholesalers, including: the outlook for brand-name drug prices, the evolution of the pharmacy industry, changes to buy-and-bill channels, vertical integration by hospitals, cell and gene therapies, importation, the rise of Amazon, and much more.

To purchase and immediately download the new report, visit https://drugch.nl/wholesale. To read a free report overview, visit https://drugch.nl/overview2019-20.

About Drug Channels Institute
Drug Channels Institute is a leading provider of specialized management education about the pharmaceutical industry. Access Dr. Fein’s popular Drug Channels blog at http://www.drugchannels.net.

Media Contact:
Tamra Feldman
Drug Channels Institute
215-523-5700 extension 14
Email: admin@drugchannels.net

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