Wholesalers face unprecedented challenges to their business model, as the Trump administration scrutinizes channel intermediary margins.
PHILADELPHIA (PRWEB) October 09, 2018
Today Drug Channels Institute (DCI), a leading management educator for and about the pharmaceutical industry, released its exclusive, in-depth analysis of the prescription drug distribution industry. DCI’s new 2018–19 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors digs deep into the business challenges facing the Big Three public drug wholesalers—AmerisourceBergen, Cardinal Health, and McKesson.
“We project that U.S. drug distribution revenues at the Big Three public companies will reach $454 billion in 2018, a 6.7% increase from the 2017 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 revenue growth will exceed the overall market’s growth, due to the consolidation of acquired smaller companies. However, we also estimate that core U.S. drug distribution margins declined in 2018.”
Fein adds, “Negative industry trends and structural risks partly explain the depressed stock valuations of the public companies. Wholesalers face unprecedented challenges to their business model, as the Trump administration scrutinizes channel intermediary margins. Our analysis, however, suggests that disruption risk from Amazon has been vastly overestimated.”
These findings are among the many insights and trends in this highly regarded report, now in its ninth 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.
The 2018–19 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors provides a thorough analysis of each public wholesaler’s business segments and underlying profitability, based upon DCI’s proprietary economic models. It also analyzes many crucial healthcare trends that will affect wholesalers and distributors, including: the outlook for brand-name drug prices, deflation of generic drug prices, vertical integration among healthcare providers, the profitability of specialty drugs and biosimilars, and much more.
To purchase and immediately download the new report, visit https://drugch.nl/wholesale.
About Drug Channels Institute
Drug Channels Institute, a division of Pembroke Consulting, Inc., is a leading provider of specialized management education and computer-based training for and about the pharmaceutical industry. To learn more about its products, visit https://www.drugchannelsinstitute.com. Access Dr. Fein’s popular Drug Channels blog at https://www.drugchannels.net.
Drug Channels Institute
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