Industry Analysis & Industry Trends
The Pharmacies and Drug Stores industry has exhibited growth despite some negative side effects from the regulatory environment. For example, the industry has grappled with changing generic drug prices to reflect reimbursement rates. As a result of this trend, the industry has contended with PBMs not updating their payment benchmarks, thus the industry has not received an adjusted reimbursement rate for their previous prescription sales, which has cut into industry revenue. Nevertheless, the patent cliff, which caused many blockbuster drugs to lose their patent exclusivity, has bolstered industry revenue. In the five years to 2021, healthcare reform will increase the number of individuals with health insurance, which increases the volume of pharmaceutical sales... purchase to read more
Industry Report - Starting a New Business Chapter
The Pharmacies and Drug Stores industry is typified by moderate barriers to entry, although barriers to entry are increasing. Due to industry consolidation, which allows larger players to develop large networks and favorable supply-side contracts with pharmaceutical manufacturers, the industry is expected to have more barriers to entry over the next five years. Further offsetting potential industry entrants, the industry is subject to federal and state laws that make retailing certain products subject to stringent regulations.
Market concentration raises barriers
Large drug store chains dominate the market; however, no single operator has control over pricing, advertising, distribution or customer loyalty... purchase to read more