Tuesday, November 10, 2009

Manufacturers and the Evolving Pharmacy Channel

Pharmaceutical Commerce just published my article on the implications of the evolving retail pharmacy industry for pharmaceutical manufacturers. You can read the article for free on the PC site: The Evolving Retail Pharmacy Channel: Implications for Manufacturers.

The article is based on my U.S. Pharmacy Industry: Economic Report and Outlook.

My key point:
The corner drugstore has evolved into consolidated, multibillion-dollar public corporations that manage the distribution, dispensing, and payment of prescriptions. These organizations will be able to use their emerging influence to extract financial support from pharmaceutical manufacturers as pharmacy margins erode. Manufacturers should be prepared with an integrated approach to engage effectively with these participants and maintain competitive position.
Please feel free to post comments on the article—pro or con—here on the blog.

I'm helping a number of clients with these issues, so drop me a line if you'd like to schedule a confidential discussion on this topic.


As a Philadelphia resident, I'm ashamed to admit that the Yankees World Series victory may be a positive leading economic indicator per Yankees World Series Victories Boost Economic Growth. You may recall the unfortunate accuracy of last year's World Series prediction in Phillies win!! Economy doomed?.

Only 146 shopping days until Opening Day 2010!


  1. Manufacturers can approach private group health plan payers (note: the employers, not the insurers) to build relationships that will strengthen their market share in these changing times. Health Plan Payers of Canada is one such group, and there are several in the US.

  2. "integrated approach" is pretty ambiguous

  3. how does consolidation of activity through chain pharmacies affect the wholesaler relationship in the US?

  4. The upcoming chain pharmacies is a good concept but is it is possible to keep a track of all the new medicines coming in the market by the chains in comparison to a retailer or a wholesaler who alone can do it in a better way. US needs to think in this manner.