Home | Publications | Production / Manufacturing place holder
place holder place holder

Production / Manufacturing

World Pharmaceutical Wholesale and Distribution Industry, The

2005

Publication Date   January 2005
Publisher   Visiongain
Product Type   Strategic Report
Pages   170
ISBN Number   not applicable
Product Code   VIS014
Ask a question about this product?

Price £1,499.00

approximately: $2,969 | €1,905

Summary


Please Note: Reports are sold based on the user licenses indicated. The reports will be accessible in Flash format via an online reading room on the publisher website, allowing viewing and printing capabilities only. Within one to two business days after placing the order, the client will receive an email with information on accessing their purchase.

The pharmaceutical wholesale and distribution industry has survived on continual low profits while the pharmaceutical companies of whom its serves continues to thrive. The major problem facing the industry today is how to increase its profitability. The Pharmaceutical Wholesale and Distribution Industry, 2005' examines the current position of the industry and analyses in detail the following major issues:

  • Fee-for-service and its viability
  • Parallel trade and its future
  • The Canada/US importation of drugs and how this will develop over time
  • Drug counterfeiting
  • The internet: mail order drugs and on-line pharmacies
  • The Big Three US Wholesalers: AmerisourceBergen, McKesson and Cardinal Health

With over 30 tables, news, insights, the latest developments and a complete survey of the industry 'The Pharmaceutical Wholesale and Distribution Industry, 2005' is a vital addition in the understanding of this complex and involved industry.

Key facts delivered in this report

  • The increase in US online drug purchases ($bn), 2003-2010
  • The drawbacks of fee-for-service
  • Why parallel trade will not disappear
  • How the drug companies are responding to the problem of Canada/US drug reimportation
  • The methods to reduce but not prevent drug counterfeits from entering the drug supply chain

Content


  • 1.Executive Summary
    • 1.2The Continual Low Profit Margin is the Major Problem for the W&D Industry
    • 1.4 Drug Counterfeiting is a Problem for Western Markets but can be Curtailed
    • 1.5 Internet drugs (Mail Order and On-line Pharmacies) will Show Increasing Growth
    • 1.6 The Increasing Genericisation of all Drug Markets Remains a Threat to the W&D Industry
  • 2. Introduction to the Wholesale and Distribution Industry
    • 2.1 There are Four Different Types of Wholesaler
    • 2.2 Pre-wholesaling is Predominantly a European Experience
    • 2.3 Secondary Wholesaler's and their Effect on the Pharmaceutical Industry
    • 2.4 The Efficiency of W&D Operations Helps to Keep Drug Prices Low
    • 2.5 Other Role and Functions of Wholesalers
    • 2.6 The Big Three Dominates the US W&D Industry
    • 2.7 The Internet is Rapidly Becoming an Integral Part of the W&D Supply Chain
    • 2.8 Fee-For-Service is Becoming Predominant in the US But Will Not Affect European W&D
    • 2.9 The European W&D Industry is Hampered by Strict Drug Price Controls
    • 2.10 Poland has the Biggest Retail Pharmacy Market in Eastern Europe
    • 2.11 The Supply Chain
    • 2.11.1 The importance of an efficient supply chain for competitive operations within the pharmaceutical industry
    • 2.11.2 The Changing Role of the Wholesale distributor in the Pharmaceutical Industry
    • 2.11.3 Financial pressure within the industry
  • 3. Parallel Trade
    • 3.1 Parallel Trade is Predominantly a European Activity
    • 3.2 The UK is the Largest Importer of Parallel Traded Drugs
    • 3.3 The Method of Parallel Trade Importing into the UK
    • 3.4 The Regulation of UK Parallel Trade
    • 3.5 Price is Not the Only Factor in Determining the Parallel Trade Potential of a Drug
    • 3.6 The Repackaging of Pharmaceuticals is an Important Aspect of Parallel Trade
    • 3.7 The Exhaustion of IPR Allows for the Importation of Drugs
    • 3.8 Current EU Case Law on Parallel Imports of Pharmaceutical Products
    • 3.9 EU Free Pricing is a Myth
    • 3.10 The Arguments For and Against Parallel Trade
    • 3.11 The Savings from Parallel Trade are Small
    • 3.11.1 Denmark
    • 3.11.2 Germany
    • 3.11.3 Sweden
    • 3.11.4 The Netherlands
    • 3.11.5 United Kingdom
    • 3.12 York Study Did Show that PT Did Reduce Healthcare Costs Albeit by Small Amounts
    • 3.13 Swedish Study Confirms Price Competitive Effect of Parallel Traded Drugs
    • 3.14 LSE Publication Contradicts EFPIA Financed Study
    • 3.15 EU Drug Price Harmonisation Is Unlikely
    • 3.16 The Drug Company's Arguments Against Parallel Trade are Weak
    • 3.17 Different Organisational Positions on Parallel Trade
    • 3.18 Visiongain Questionnaire on Parallel Trade: A Surprising Consensus Between Both Big Pharma and the W&D Industry
  • 4. Canada and US Drug Reimporatation
    • 4.1 Drugs are Not Always Cheaper in Canada Compared to the US
    • 4.2 Generic Drugs Cheaper in the US and not Canada
    • 4.3 It is Legal for the US to Import Drugs from Canada but only if the Drugs are Proven Safe
    • 4.4 The US States Currently Active in US/Canada Drug Reimportation
    • 4.5 Why are Pharmaceutical Prices Lower in Canada?
    • 4.6 Reimportation is a Form of Price Control which may have Poor Financial Consequences for the Pharmaceutical Industry
    • 4.7 The Response of the Major Drug Companies on Drug Reimportation from Canada
    • 4.8 The Response of the Canadian Pharmacies to Drug Reimportation
    • 4.9 The Overall Savings from Drug Reimportation for the Consumer and the US Government is Small
    • 4.10 Drug Reimportation Will Never Work on a Large Scale
  • 5. The Big Three US Wholesalers: AmerisourceBergen, McKesson and Cardinal Health
    • 5.1 McKesson is the Dominant Wholesaler in the US
    • 5.2 Cardinal Health had Revenues of $67bn for the 2004 Financial Year
    • 5.3 AmerisourceBergen Will Remain as the Third Largest US Wholesaler
    • 5.4 AmerisourceBergen Losses Important VA Contract
  • 6. Drug Counterfeiting and the Wholesale and Distribution Industry
    • 6.1 The Economic Cost of Drug Counterfeiting
    • 6.2 Counterfeit Drugs are Not Just a Developing World Problem
    • 6.3 Recent Incidents of Counterfeit Drugs in the US
    • 6.4 The Legal Definitions of a Counterfeit Drug
    • 6.5 The Four Types of Counterfeit Drugs
    • 6.6 The True Extent of Drug Counterfeiting Remains Unknown
    • 6.7 Counterfeit Drugs are More Prevalent in the Developing World
    • 6.8 Antibiotics are the Most Counterfeited Drug
    • 6.9 Conditions that Encourage Counterfeiting
    • 6.10 Conditions that Determine Which Drug is Counterfeited
    • 6.11 Counterfeit Drugs Thrive Through Lack of Adequate and Enforceable Legislation
    • 6.12 The Reasons Why Drug Counterfeiting is Attractive to Organised Crime
    • 6.13 Drug Counterfeiting: How It's Done
    • 6.14 Drug Counterfeiting and Criminality
    • 6.15 The Complexity of Wholesale and Distribution Routes Aids the Counterfeiter
    • 6.16 Moving Counterfeit Drugs into the Supply Chain
    • 6.17 The Distribution Network as the Place of Entry for Counterfeit Drugs
    • 6.18 The Internet as a Novel Method to Distribute Pharmaceuticals
    • 6.19 Internet Counterfeit Drugs and the US Law
    • 6.20 Drugs Entering US via Mail/Land has Massively Increased Aiding the Counterfeiter
    • 6.21 Unlicensed Drug Outlets Will Sell Counterfeit Drugs Directly
    • 6.22 Drug Diversion is Illegal and Has Links with Drug Counterfeiting
    • 6.23 Parallel Trade Has Links with Drug Counterfeiting
    • 6.24 Corruption Is a Tool of the Counterfeiter
    • 6.25 The Regulatory Strategies in Combating Drug Counterfeiting
    • 6.26 The Difficulty of Drug Counterfeit Detection
    • 6.27 The Technical Strategies in Combating Counterfeit Drugs
    • 6.28 Holograms as Anti-Counterfeiting Devices
    • 6.29 Security Inks as Anti-Counterfeit Devices
    • 6.30 Micro Tags as Anti-Counterfeit Devices
    • 6.31 Radio Frequency Identification Tags (RFID) as Anti-Counterfeit Devices
    • 6.32 Visiongain Questionnaire at a Recent Wholesale and Distribution Conference
  • 7. Internet Drugs: Mail Order and On-Line Pharmacies
    • 7.1 The Use of the Internet Usage has Seen High Growth in Both the Developing as well as Developed Countries and Regions
    • 7.2 The US has the Highest Numbers of Internet Users
    • 7.5 Mail Order/On Line Growth Rates Will Remain High to 2008
    • 7.7 Online Pharmacies May Need to Diversify their Business Base
    • 7.8 Most US Online Drug Sales are from Women
    • 7.9 Online Drugs and Services May Pose a Significant Health Risk
    • 7.10 Consumers Like Mail Order
    • 7.11 On-line Prescriptions
    • 7.12 European Online Drug Sales are Low and Limited to OTC
    • 7.13 Online Pharmacy Sites are A Potential Haven for Counterfeiters
  • 8. Fee-For-Service
    • 8.1 Drug Manufacturers Will Want an Incentive to Shift to Fee-for-Service
    • 8.2 Fee-for-Service is a Risk for the W&D Industry
    • 8.3 The US Big Three W&D Companies Have Prepared for Fee-for-Service
    • 8.4 Inventory Management Agreements (IMAs) are the Fee-For-Service Agreements
    • 8.5 The Experience of Fee-for-Service/IMAs is Limited
    • 8.6 Fee-for-Service in the US and Europe Compared
    • 8.7 US Based Cardinal Health Signs Fee-for-Service Deal with Eli Lilly
    • 8.8 AmerisourceBergen and McKesson Say Fee-for-Service Negotiations are on Track
  • 9. Conclusion: Despite the Development of Fee-for-Service Both US and European W&D will see Continual Low Profit Margins
  • List of Graphs and Tables
    • Table A All Companies Mentioned in this Report, 2005
    • Graph 1.1 Mail Order Prescription Sales ($bn), 2003-2010
    • Grpah 2.1 Top Ten (%) Leading Global Retail Markets, 2004
    • Graph 2.2 Top Ten (%) Leading European Retail Pharmaceutical Markets, 2004
    • Graph 2.3 Top Ten (%) Leading Central and Eastern European Retail Pharmaceutical Markets, 2004
    • Graph 7.1Market Share (%) of US Mail Order Revenue of all Prescription Sales ($bn), 2003-2010
    • Graph 7.3 Forecast of US Prescription Sales ($bn) including Mail Order, 2003-2010
    • Table 2.1 Market Share (%) in Revenues in Direct Sales from Manufacturers to European Retailers, 2003
    • Table 2.2 Types of Wholesalers Described
    • Table 2.3 The Top Ten European W&D Companies
    • Table 2.4 Leading Wholesalers Companies per European Country
    • Table 2.5 Leading Global Retail Pharmaceutical Markets, 2003
    • Table 2.6 Leading European Retail Pharmaceutical Markets, 2003
    • Table 2.7 Leading Central and Eastern Retail Pharmaceutical Markets, 2003
    • Table 3.1 World Differential Prices for Branded Amoxil 250mg, 2004
    • Table 3.2 Major Parallel Exporters of Drugs in the EU, 2003
    • Table 3.3 Retail Pharmaceutical Penetration by Parallel Imports, 2002
    • Table 3.4 Direct Savings ($m) from Use of Parallel Sourced Drugs, 2002
    • Table 4.1 Comparison of Drug Prices Between the US and Canada (as of June 15, 2004)
    • Table 4.2 Comparison of Generic Drug Prices Between the US and Canada (October 2004)
    • Table 4.3 Principle US Cities and States Involved in Drug Reimportation
    • Table 5.1 Operating Revenues ($bn) for McKesson, 2003-2004
    • Table 5.2 McKesson Profitability, 2003-2004
    • Table 5.3 Cardinal Health Profitability, 2003-2004
    • Table 5.4 Operating Revenue AmerisourceBergen Company Results 2003
    • Table 5.5 Stock Quote for AmerisourceBergen, 2004
    • Table 5.6 AmerisourceBergen Profitability, 2003-2004
    • Table 6.1 Levels (%) of Drug Counterfeiting by Country
    • Table 6.2 Types of Drugs Counterfeited
    • Table 7.1 World Internet Usage and Population Statistics, September 2004
    • Table 7.2 Top Ten Countries with Highest Number of Internet Users, September 2004
    • Table 7.3 Countries with the Highest Internet Penetration Rate, September 2004
    • Table 7.4 US Prescription Sales ($bn) by Distribution Sector, 2003
    • Table 7.5 Market Share (%) of US Mail Order Revenue of all Prescription Sales ($bn), 2003-2010
    • Table 7.6 Forecast of US Prescription Sales ($bn) including Mail Order, 2003-2010
    • Table 7.7 Top Ten US Online Pharmacy Sites Ranked by Market Share based on the Number of Visits, 2003
    • Table 7.8 The Drugs With the Highest Number of Internet Hits, 2004
    • Table 7.9 Leading Therapeutic (%) Areas for US On Line Pharmacy Prescription Rates, 2003