Industry Analysis & Industry Trends
As primary providers of pharmaceutical distribution and services to hospitals and other healthcare institutions, the Institutional Pharmacies industry is highly dependent on Medicare funding to support revenue growth. Despite a rise in demand for industry services, and subsequently, the higher sales volumes, shrinking Medicare reimbursements in recent years caused the industry to experience significant revenue loss in 2012 and 2013. However, the industry is expected to perform positively in the five years to 2020 as a result of changing demographics, the continued effects of healthcare reform and expansion of the industry's clinical services.... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Institutional Pharmacies industry is mature, with growth over the ten years to 2020 expected to only slightly lag behind US GDP growth. Over the 10 years to 2020, the value that the industry adds to the overall economy is expected to increase 2.2% per year on average. In comparison, US GDP is expected to expand an annualized 2.5% during the same period, indicating that institutional pharmacies will generally maintain their share of the total US economy, a hallmark of a mature industry.
The industry has been consolidating during the past five years and is expected to continue to experience significant merger and acquisition activity going forward. Omnicare Inc... purchase to read more