Pharmaceutical Distribution Statistics


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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 🙂

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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 biggest benefits of pharmaceutical distribution is its ability to meet the demands of patients across different geographical locations. Thanks to these distribution networks, individuals living in rural or remote areas can still access essential medications without having to travel long distances. This level of accessibility is key in ensuring that all individuals, regardless of where they live, can receive the healthcare they require.

Additionally, pharmaceutical distribution also plays a crucial role in maintaining the integrity and safety of medications. Proper storage and transportation are essential in ensuring that medications remain effective and safe for consumption. Any deviation from the necessary standards could compromise the quality of the drugs, putting patients at risk of adverse reactions or inadequate treatment. By adhering to strict guidelines and regulations, pharmaceutical distributors help maintain the efficacy and safety of medications throughout the supply chain.

Moreover, pharmaceutical distribution also aids in reducing medication wastage and inventory management issues. Through efficient supply chain management, distributors are able to deliver medications in the right quantities and at the right time, reducing the chances of running out of essential drugs or having an excess that may spoil. This level of precision not only helps healthcare facilities save costs but also ensures that patients receive uninterrupted access to the medications they need.

Furthermore, pharmaceutical distribution supports the innovation and development of new medications. By facilitating the delivery and availability of new drugs to the market, distributors help support pharmaceutical companies in pushing the boundaries of medical research and development. This collaboration drives advancements in healthcare and offers patients new treatment options for existing and emerging health conditions.

Additionally, pharmaceutical distribution can also contribute to the reduction of counterfeit medications in the market. With stringent quality control measures in place, distributors help weed out fake or substandard drugs, safeguarding patients from falling victim to fraudulent products. This level of vigilance not only protects patients but also upholds the credibility and trustworthiness of the pharmaceutical industry as a whole.

In conclusion, pharmaceutical distribution is a vital component of the healthcare system that ensures the seamless flow of medications from manufacturers to end-users. Its impact extends far beyond just delivering drugs – it contributes to patient accessibility, medication safety, innovation, waste reduction, and the fight against counterfeit medications. As such, it is essential to recognize and appreciate the critical role that pharmaceutical distribution plays in sustaining the health and well-being of individuals worldwide.

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/

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