Pharmaceutical Distribution Statistics


Steve Goldstein
Steve Goldstein
Business Formation Expert
Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing an LLC.

All Posts by Steve Goldstein →
Business Formation Expert  |   Fact Checked by Editorial Staff
Last updated: 
LLCBuddy™ offers informative content for educational purposes only, not as a substitute for professional legal or tax advice. We may earn commissions if you use the services we recommend on this site.
At LLCBuddy, we don't just offer information; we provide a curated experience backed by extensive research and expertise. Led by Steve Goldstein, a seasoned expert in the LLC formation sector, our platform is built on years of hands-on experience and a deep understanding of the nuances involved in establishing and running an LLC. We've navigated the intricacies of the industry, sifted through the complexities, and packaged our knowledge into a comprehensive, user-friendly guide. Our commitment is to empower you with reliable, up-to-date, and actionable insights, ensuring you make informed decisions. With LLCBuddy, you're not just getting a tutorial; you're gaining a trustworthy partner for your entrepreneurial journey.

Pharmaceutical Distribution Statistics 2023: Facts about Pharmaceutical Distribution outlines the context of what’s happening in the tech world.

LLCBuddy editorial team did hours of research, collected all important statistics on Pharmaceutical Distribution, and shared those on this page. Our editorial team proofread these to make the data as accurate as possible. We believe you don’t need to check any other resources on the web for the same. You should get everything here only 🙂

Are you planning to form an LLC? Maybe for educational purposes, business research, or personal curiosity, whatever the reason is – it’s always a good idea to gather more information about tech topics like this.

How much of an impact will Pharmaceutical Distribution Statistics have on your day-to-day? or the day-to-day of your LLC Business? How much does it matter directly or indirectly? You should get answers to all your questions here.

Please read the page carefully and don’t miss any words.

Top Pharmaceutical Distribution Statistics 2023

☰ Use “CTRL+F” to quickly find statistics. There are total 31 Pharmaceutical Distribution Statistics on this page 🙂

Pharmaceutical Distribution “Latest” Statistics

  • Manufacturers had the largest gross margins for all medications combined at 71.1%, followed by insurers at 22.2%, pharmacies at 20.1%, PBMs at 6.3%, and wholesalers at 3.7%.[1]
  • Generic medication producers’ gross margins are 50% lower than those of pharmacies, which have 43% greater margins.[1]
  • All parties’ net margins—which range from 26.3% for manufacturers to 0.5% for wholesalers—are much lower.[1]
  • Manufacturers may only access net margins per medication type if they fall considerably short of their gross margins, which are 28.1% for brand-name pharmaceuticals and 18.2% for generics.[1]
  • Although more slowly, net prices—which include all reductions and rebates—have increased by 2.8% in the last year.[1]
  • But when comparing median market capitalization, pharmaceutical businesses were much bigger than sp 500 companies, with a median difference of $15.6 billion (95% CI, $12.0 billion to $19.7 billion).[2]
  • Even while the U.S. market accounts for 47% of worldwide pharmaceutical sales from 2016 to 2018, that market accounts for a disproportionately higher share of pharmaceutical earnings.[2]
  • The difference in profit did not fall beyond the 95% confidence interval for the whole data set.[2]
  • Although these estimates of the difference profit were greater than those obtained using the whole data set, they did not depart from the 95% confidence interval for the entire data set.[2]
  • According to McKinsey research, it has assisted certain pharmaceutical firms in increasing sales by up to 25%.[3]
  • 17% of individuals with naloxone prescriptions had observed an overdose, but 68% of those recruited from syringe service programs, detoxification, or opiate treatment programs had.[4]
  • Nearly 40% of the patients polled had seen an overdose, even though only 3% of patients reported having a naloxone prescription or being trained to administer naloxone.[4]
  • In the last week of March 2020, mail-order medicine demand increased by 21% compared to the prior year.[5]
  • Specialty medications were used by 49% of patients with commercial insurance in that year, but they accounted for roughly half of all drug expenditures.[5]
  • Due to this, 8% more medications were distributed outside of the typical wholesaler distribution routes in 2017; the majority of these instances included specialty pharmaceuticals.[5]
  • According to the report, approximately 93% of pharmaceutical sales, or 105 million units per day, were still made via wholesalers in 2020.[6]
  • The NDC number and barcodes at the case and item levels are scanned by about 83% of distributors with more than $1 billion in sales when products arrive from suppliers.[6]
  • Distributors employed automated picking techniques to fill 65% of orders.[6]
  • Prescription pharmaceuticals comprised 75% of all SKUs, while nonprescription drugs, including general goods, home healthcare, and health and personal care items, comprised the remaining 20%.[6]
  • Approximately 80% of the wholesalers polled carry personal protective equipment, with the average number of SKUs they had in stock falling by 93% to 41,397 in 2019.[6]
  • Despite the lowest reported profits ever, the sector maintained its high service standards, with distributors’ gross margins falling to 19%.[6]
  • 83.3% of distributors can scan individual goods, 83.3% can scan product cases, and only 40% can scan pallets and shelf packs.[7]
  • Customers could use one or both kinds of computerized ordering systems to purchase items from 93% of wholesalers.[7]
  • A region accounts for around 40% of the pharmaceutical trade, compared to 50% for other sectors on average.[8]
  • As these occurrences increase in frequency every ten years, according to the McKinsey global institute, the pharmaceutical business will lose an average of 24% of its profits before interest, taxes, depreciation, and amortization.[8]
  • For instance, china supplies 96% of the chloramphenicol marketed in the European Union and 86% of the streptomycin sold in North America.[8]
  • Over 50% of respondents identified a significant weakness in the exclusive sourcing of inputs, while 25% mentioned a lack of awareness of supplier risks.[8]
  • We project that source diversity may be an option for between 38 and 60% of the $236 billion to $377 billion global pharmaceutical trade in 2018.[8]
  • 85.1% of medicine recalls were due to quality difficulties, while 14.9% were due to labeling problems.[9]
  • Between January 2017 and September 2019, pharmaceutical medication recalls accounted for 85.2% of all recalls, while medical device recalls accounted for 34.8% of all recalls during the same time.[9]
  • In contrast to the 94.1% of medical device recalls that fell into this category, all but 32 of the 195 medication recalls were classified as quality issues, with 851.[9]

Also Read

How Useful is Pharmaceutical Distribution

One of the primary benefits of pharmaceutical distribution is its ability to streamline the supply chain and ensure that medicines are readily available when and where they are needed. By working closely with pharmaceutical manufacturers, distributors can help to ensure that healthcare facilities have a consistent supply of essential medicines, reducing the risk of stock outs and supply shortages. This is particularly important in countries where access to healthcare services is limited, as a lack of essential medicines can have serious consequences for patients.

In addition to ensuring the availability of medicines, pharmaceutical distribution also plays a key role in ensuring the quality and safety of pharmaceutical products. Distributors are responsible for maintaining the integrity of medicines throughout the supply chain, from the moment they leave the manufacturer to the moment they reach the patient. This includes ensuring that medicines are stored and transported under the appropriate conditions to prevent contamination or degradation. By closely monitoring the storage and transportation of medicines, distributors help to ensure that patients receive safe and effective treatments.

Furthermore, pharmaceutical distribution can also help to reduce healthcare costs by optimizing the supply chain and minimizing wastage. By effectively managing inventory levels and ensuring timely delivery of medicines, distributors can help healthcare facilities to reduce their carrying costs and prevent waste. This is particularly important in the case of expensive or perishable medicines, where wastage can have a significant impact on healthcare budgets.

Moreover, pharmaceutical distribution can also help to improve patient outcomes by facilitating the timely delivery of medicines to patients. In cases where patients require prescription medications to manage chronic conditions or acute illnesses, delays in the delivery of medicines can have serious consequences. Distributors play a crucial role in ensuring that medicines are delivered promptly to patients, helping to improve adherence to treatment regimens and overall health outcomes.

Overall, pharmaceutical distribution is an essential component of the healthcare system that plays a critical role in ensuring the availability, quality, and safety of medicines for patients. By streamlining the supply chain, maintaining the integrity of medicines, reducing costs, and improving patient outcomes, pharmaceutical distribution serves as a vital link between pharmaceutical manufacturers and healthcare providers. It is an often underappreciated but indispensable part of the healthcare ecosystem that deserves recognition for its contributions to public health.

Reference

  1. usc – https://healthpolicy.usc.edu/research/flow-of-money-through-the-pharmaceutical-distribution-system/
  2. jamanetwork – https://jamanetwork.com/journals/jama/fullarticle/2762308
  3. nexocode – https://nexocode.com/blog/posts/leveraging-data-science-and-artificial-intelligence-to-overcome-pharmaceutical-distribution-challenges/
  4. nih – https://nida.nih.gov/publications/naloxone-opioid-overdose-life-saving-science
  5. commonwealthfund – https://www.commonwealthfund.org/publications/issue-briefs/2022/jul/impact-pharmaceutical-wholesalers-drug-spending
  6. hda – https://www.hda.org/news/2021-12-9-distribution-industry-remained-efficient-and-resilient-during-first-year-of-covid19
  7. mckesson – https://www.mckesson.com/Blog/10-Pharmaceutical-Distribution-Trends-to-Know/
  8. mckinsey – https://www.mckinsey.com/industries/life-sciences/our-insights/four-ways-pharma-companies-can-make-their-supply-chains-more-resilient
  9. nih – https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7395820/

Leave a Comment