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          1. Drug Wholesalers Industry Profile

            Report Page Length: 10-12
            Last Quarterly Update: 6/8/2020
            SIC Codes: 5122
            NAICS Codes: 424210
            Chapters Include:
            Industry Overview Trends & Challenges Industry Forecast
            Quarterly Industry Update Call Prep Questions Website & Media Links
            Business Challenges Financial Information Glossary & Acronyms
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            Excerpt from Drug Wholesalers Industry Profile

            Companies in this industry serve as wholesale distributors of prescription drugs, over-the-counter medicines, and related products. Major companies include AmerisourceBergen, Cardinal Health, and McKesson (all based in the US), as well as Jointown Pharmaceutical (China), Medipal (Japan) and PHOENIX (Germany).

            Aging populations worldwide drive demand for wholesale drug distribution. In addition, growing numbers of middle-class consumers will likely lead to expansion for the industry in countries such as India, China, Turkey, Mexico, Indonesia, Brazil, and Russia.

            The US drug wholesalers industry includes about 10,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $890 billion. The industry includes manufacturers' distribution units.

            COMPETITIVE LANDSCAPE

            Demand for pharmaceutical distribution is driven by the need to treat illness and disease. The profitability of individual companies is determined by the efficient distribution of a wide variety of drugs and medications. Large companies compete intensely on price, size of generic drug portfolio, product volume and variety, and the quality of value-added support services such as supply chain management. Small companies can compete by focusing on rural areas, independent community pharmacies, or the distribution of drugs that have special handling requirements. The US industry is highly concentrated: the top four companies account for about 45% of revenue; the top 50 companies account for about 85%.

            PRODUCTS, OPERATIONS & TECHNOLOGY

            Major products include branded and generic prescription drugs, which account for about 80% of industry revenue. Other products ...

             
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