As the headline above says, I really do think that this is my best report on the drug wholesale industry ever. I’ve packed enough into the report to make it valuable whether you’re new to the industry or a grizzled veteran. I highlight a few unique elements below.
My target audience is diverse:
- Manufacturers of pharmaceuticals and healthcare products (my primary consulting clients, BTW)
- Wholesalers (not my clients)
- Buyers and executives at pharmacies of all sizes
- Investors in the public companies
- Pharmacy Benefit Managers (PBMs)
- Policy analysts
What's in it for you? Well, if I did my job right, you’ll:
- Increase your understanding of key industry trends, economic motivations, and wholesaler business strategies
- Validate or challenge your assumptions about the risks and opportunities facing the pharmaceutical wholesale industry
- Improve your ability to negotiate and/or collaborate successfully with pharmaceutical wholesalers
In addition to covering the basics, I also delve into some little understood aspects of the wholesale industry, including:
- Channels for Specialty Drugs—I devote multiple sections to the confusing and often overlapping channels to market for specialty drugs. I wrote this part of the report because I couldn’t locate a single resource covering this topic.
- Fee-For-Service Agreements between wholesalers and manufacturers—Surprisingly little has been published about these agreements or how they work, so I fill in the gaps for you.
- Why do large chains buy from wholesalers?—In theory, large pharmacy buyers with in-house supply chain capabilities could bypass drug wholesalers. I walk through the drug pricing complexities that keep wholesalers in the middle, albeit at very slim profit margins.
- Role in the Pharmacy-PBM Relationship—Pharmacy Services Administrative Organizations (PSAOs) negotiate and administer contracts between PBMs and independent pharmacies. The biggest PSAOs are owned and operated by drug wholesalers. I tell you about these unexpected relationships.
- Group Purchasing Organizations (GPOs)—The two largest GPOs for community-based oncology practices are now owned by two of the largest wholesalers. Gee, can you guess which wholesalers get selected as preferred providers by these GPOs?
Please feel free to email me if you have any questions about the report.