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Pharmacies & Drug Stores in the US - Industry Market Research Report

  • September 2016
  • -
  • Ibisworld
  • -
  • 44 pages

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Doctor's orders: Despite profit setbacks, healthcare reform and an aging population will encourage growth



Abstract

Pharmacies & Drug Stores in the US

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. However, the industry will contend with the strong possibility of federal cost-cutting measures. Therefore, stringent reimbursement rates may cut into industry profitability.

Pharmacies and drug stores retail a range of prescription and over-the-counter medications, health and beauty items, toiletries and consumable goods directly to consumers on a walk-in basis. Industry companies may also provide basic health and photo processing services. The industry includes retail stores with a pharmacy but excludes mail-order retailers, hospitals and clinics.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.



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