Active immunity: The aging population will strengthen industry revenue

The Institutional Pharmacies industry is relatively immune to fluctuations in the macroeconomic climate due to its nondiscretionary nature. However, the industry experienced some declines in recent years due to receding Medicare and insurance reimbursement rates. Generic drugs have accounted for an increasingly large portion of prescriptions filled over the past five years, so this reimbursement limit has slowed growth and reduced industry revenue. Moreover, the industry's high dependency on Medicare reimbursements has raised concerns about operators' long-term profitability and stability. Over the next five years, the aging population is forecast to expand as a percentage of the total population. Consequently, IBISWorld expects revenue to increase during the five-year period to 2022...purchase to read more.

Industry Statistics & Market Size
Revenue
$18bn
Annual Growth 12-17
2.2%
Forecast Growth 17-22
Profit
Employment
76,170
Businesses
2,059

Industry Threats & Opportunities

  • Dependency on Medicare reimbursements has raised concerns about long-term profitability
  • Private health coverage has helped sustain demand for medical procedures and medical care
  • The aging population is expected to significantly affect demand for institutional pharmacies
  • Industry Report - Industry Key Buyers Chapter

    The Institutional Pharmacies industry has a medium level of concentration, with the two largest players accounting for an estimated 43.6% of industry revenue. The remaining 56.4% of the industry is highly fragmented, with the third-largest industry player accounting for only 2.0% of industry revenue. As firms in the industry continue to consolidate operations over the next five years, industry concentration is expected to increase. However, the industry will always likely remain at a moderately concentrated level due to regulator antitrust concerns...purchase to read more.

    Additional Insights for the Institutional Pharmacies Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Institutional Pharmacies Industry are

  • Economies of scale
  • Ability to quickly adopt new technology
  • Ability to negotiate successfully with regulator
  • IBISWorld analysts also discuss how external factors such as Demand from hospitals and Demand from nursing and residential care facilities in the Institutional Pharmacies industry impact industry performance..

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    What's in this report

    What is the Institutional Pharmacies Industry?

    This industry comprises pharmacies that provide a range of services to residents of nursing homes, hospitals or hospice environments that do not have an on-site pharmacy. In addition to providing pharmaceuticals, institutional pharmacies also provide consulting services, which include monitoring the control, distribution and administration of drugs and assisting with regulation compliance.

    Industry Products
  • Brand-name pharmaceuticals
  • Clinical services
  • Generic pharmaceuticals
  • Industry Activities
  • Providing pharmaceuticals for institutional clients
  • Providing consulting services for institutional clients
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from hospitals
  • Demand from nursing and residential care facilities
  • Number of adults aged 50 and older
  • Number of people with private health insurance
  • Total health expenditure

  • Current Performance
  • Sustained demand
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Shifting trends
  • Pressured profit
  • Table: Institutional Pharmacies Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Institutional Pharmacies Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Emergency & Other Outpatient Care Centers
  • Hospitals
  • Specialty Hospitals
  • Nursing Care Facilities

  • Key Selling Industries
  • Brand Name Pharmaceutical Manufacturing
  • Generic Pharmaceutical Manufacturing

  • Products & Services
  • Brand-name pharmaceuticals
  • Clinical services
  • Generic pharmaceuticals
  • Other
  • Chart: Institutional Pharmacies Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Federal (Medicare)
  • State (Medicaid)
  • Private (Insurance and other)
  • Other
  • Chart: Major Market Segmentation for the Institutional Pharmacies Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Institutional Pharmacies

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Institutional Pharmacies Industry

  • Industry Globalization
    Omnicare Inc., PharMerica Corporation,
  • Table: Omnicare Inc. - financial performance
  • Table: PharMerica Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Institutional Pharmacies Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Institutional Pharmacies Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Total health expenditure (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Brand Name Drug
  • A drug that is patent protected and can only be sold by the patent holder.
  • Generic Drug
  • A drug that is comparable to a brand name drug in dosage form, strength, performance characteristics and intended use. Generic drugs enter the market once brand name drugs lose patent protection.
  • Medicare Part D
  • A federal program that subsidizes the cost of drugs for Medicare beneficiaries.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Institutional Pharmacies Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Institutional Pharmacies industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Institutional Pharmacies:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Institutional Pharmacies market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Institutional Pharmacies, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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