Pharmaceutical Distribution Statistics 2023
– Everything You Need to Know

Last Updated on by | Reviewed by Editorial Staff

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

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/

About Author & Editorial Staff

Steve Goldstein, founder of LLCBuddy, is a specialist in corporate formations, dedicated to guiding entrepreneurs and small business owners through the LLC process. LLCBuddy provides a wealth of streamlined resources such as guides, articles, and FAQs, making LLC establishment seamless. The diligent editorial staff makes sure content is accurate, up-to-date information on topics like state-specific requirements, registered agents, and compliance. Steve's enthusiasm for entrepreneurship makes LLCBuddy an essential and trustworthy resource for launching and running an LLC.

Leave a Comment