Industry Analysis & Industry Trends
The Pharmacies and Drug Stores industry has exhibited growth despite some negative side effects from the regulatory environment. The industry has contended with PBMs not updating their payment benchmarks, thus causing the industry to not receive 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 next five years, industry revenue is forecast to grow, as healthcare reform will increase the number of individuals with health insurance... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Pharmacies and Drug Stores industry is in the mature stage of its life cycle. The industry's value added (IVA), which measures the industry's contribution to the overall economy, is anticipated to grow at an annualized rate of 2.6% during the 10 years to 2020. Comparatively, GDP is expected to grow at an annualized rate of 2.5% during the period. High competition, coupled with many industry players consolidating, is indicative of an industry in the mature life cycle stage.
New players are also deterred by the strong rivalry between the top two players (Walgreen Company and CVS Caremark), which make up an estimated 89.1% of industry revenue. Further indicative of an industry in the mature life cycle stage, the industry has been characterized by stagnant profit margins... purchase to read more