New Drug Channels Institute Study Examines Impact of COVID-19 on U.S. Drug Distribution Industry

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The COVID-19 pandemic has demonstrated the underlying resilience of U.S. distribution channels for prescription drugs. Despite unusual patterns of demand during 2020, we expect that overall drug distribution revenues at the Big Three wholesalers will increase to $621 billion by 2024.

Today Drug Channels Institute (DCI), a leading management educator for and about the pharmaceutical industry, released its exclusive analysis of U.S. prescription drug distribution channels. DCI’s new 2020–21 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors delves into the business operations of the Big Three public drug wholesalers—AmerisourceBergen, Cardinal Health, and McKesson. Three new sections address COVID-19 and its impact on wholesalers, including the potential financial effects on wholesalers of widespread distribution of one or more COVID-19 vaccines.

Drug Channels Institute CEO Adam J. Fein, Ph.D., the report’s author and a widely regarded expert on pharmaceutical economics and the drug distribution system, notes: “The COVID-19 pandemic has demonstrated the underlying resilience of U.S. distribution channels for prescription drugs. Despite unusual patterns of demand during 2020, we expect that overall drug distribution revenues at the Big Three wholesalers will increase to $621 billion by 2024.”

Now in its 11th edition, The 2020-21 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors offers 136 proprietary charts, exhibits, and data tables. It remains the most comprehensive resource for analyzing the pharmaceutical distribution industry’s economics, market structure, growth rates, forces of change, and interactions with the U.S. healthcare system. The new report also provides an updated analysis of each of the Big Three public wholesaler’s business segments and underlying profitability, based upon DCI’s proprietary economic models.

The 2020-21 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors analyzes many crucial healthcare trends affecting pharmaceutical wholesalers, including: the outlook for brand-name drug prices, the evolution of the pharmacy industry, changes to buy-and-bill channels, vertical integration by hospitals, cell and gene therapies, importation, and much more.

Fein adds, “COVID-19 has significantly disrupted healthcare markets, but has not fundamentally altered the negative industry trends facing wholesalers’ pharmacy customers.”

To purchase and immediately download the new report, visit https://drugch.nl/wholesale. To read a free report overview, visit https://drugch.nl/overview2020-21.

About Drug Channels Institute

Drug Channels Institute is a leading provider of specialized management education about the pharmaceutical industry. To learn more about its products, visit https://www.drugchannelsinstitute.com. Access Dr. Fein’s popular Drug Channels blog at https://www.drugchannels.net.

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