Industry Analysis & Industry Trends
Though it felt the recession's effects, the Pharmacy Benefit Management industry has recovered quickly and is poised to grow on the back of rising insurance coverage and increased physician visits, which will yield a higher number of prescriptions filled. As the median age of the US population continues to rise, more Americans will rely on medications, increasing demand for the industry's services from insurers and employer-sponsored coverage plans. As more patients choose generics over more expensive brand names, however, industry profit margins are expected to make little progress in the coming years.... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Pharmacy Benefit Management (PBM) industry is in the mature phase of its life cycle, characterized by industry growth that is slower than that of the overall economy, a major mergers and acquisitions phase and many operators focusing on improving operational efficiency rather than developing new service offerings. IBISWorld estimates that industry value added (IVA), a measure of the industry's contribution to the overall economy, increased at a 0.4% average annual rate over the 10 years from 2007 to 2017, compared with GDP growth of 1.9% over the same period.
The industry also underwent a major merger and acquisition phase between 2007 and 2012. The number of PBMs fell at a 4.0% average annual rate during this time due to over 20 industry acquisitions between 2008 and 2012... purchase to read more