Wednesday, September 30, 2009

Download My New Pharmacy Industry Report

I am pleased to announce the release of my new downloadable report U.S. Pharmacy Industry: 2009 Economic Report and Outlook. Here’s the Dow Jones story: Report: US Pharmacy Revenues To Surpass $350 Billion By 2015.

I’m really proud of the report and think you’ll find it to be a valuable planning tool. I want to tell you a bit about the content and give blog readers a sneak peek at the seven major trends.

I also want to offer something special for you, my blog readers. I will randomly select 5 of first 25 Corporate License purchasers for a confidential 60 minute conference call with me to review the report with your team.


I wrote this report for pharmacists, business people, drug manufacturers, employers, benefit managers, healthcare policy analysts, investors—anyone who wants to understand and benefit from the forces reshaping the increasingly competitive U.S. pharmacy industry.

Translation: this report will appeal to regular reader of Drug Channels.

The report gives you the Big Picture on the industry's major trends. I worked hard to write an integrated, self-contained document with lots of new stuff that's never been on the blog. I also filled it with data and information, including 22 detailed exhibits to help you understand the pharmacy industry's real economics and 63 endnotes with live weblinks to the original source materials. Yes, you can really get wild-and-crazy with this report!

Unlike the blog, the report is joke-free
no goofy puns or silly pop-culture references. Some of you may view this omission as an improvement.


As you see on the report’s informational page, I am hopping on the latest internet trend: Freemium.

So, you get Drug Channels for free, but this special report incurs a premium charge. I’ve seen other reports on the pharmacy industry selling for $1,000 and up, but this reports sells for much less.

There are two versions: Single-User and Corporate. Please respect the license terms and purchase the one that's right for you.
  • I am offering the lower-priced Single User License for individuals—pharmacy owners, industry analysts, lone wolves—who only want it for themselves.

  • You must purchase the Corporate License if you want to share the report with your co-workers. This version is appropriate if you want to share report among multiple employees within a single organization.

A highlight of the report is my forecast of the industry in 2015 and market share by channel. Total prescription revenues of U.S. pharmacies and drugstores will reach more than $350 billion by 2015, an increase of almost $100 billion from 2008. I project that larger retailers—chain drugstores and merchants with pharmacies—will grow faster than other channels (including mail-order) and capture 56.5% of the market.

My report analyzes seven major trends that will affect the economics and structure of the pharmacy and drugstore industry in the coming years:
  • Strong Underlying Growth Potential
  • The Coming Generic Boom
  • Risks to the Superior Profitability of Generic Drugs
  • Replacing the Average Wholesale Price Benchmark
  • Cost-Plus Pharmacy Reimbursement
  • Preferred and Restricted Pharmacy Networks
  • Government as the Dominant Payer for Outpatient Drugs
I welcome comments, criticisms, questions and kudos from anyone who buys the U.S. Pharmacy Industry: 2009 Economic Report and Outlook. Email me any questions about the content if you’re not yet sure the report is right for you.


  1. Curious what you think about Walgreens new 90-day program. It's clearly a response to CVS's Maintenance Choice, but without a PBM to back it up. Are payers going to bite at this?

  2. Great report, I am happy to see that independent pharmacies have a leading market share at 17%, and you see it as a viable business going forward, it seems to me that the strongest independents, high volume will increase market share as smaller stores close. My pharmacy for instance is the one remaining independent from 7 nearby 20 years ago, have gone from filling 100 scripts per day back then to over 500 a day now, exceeding all but one chain location in town. As long as networks are open we will flourish, (with our low cost of dispensing).