MALVERN, PA — The Drug Channels Institute (DCI), a division of HMP Global, recently unveiled its 2024 Economic Report on U.S. Pharmacies and Pharmacy Benefit Managers, offering an unparalleled look into the complex mechanisms of drug pricing, reimbursement, and dispensing in the United States. This latest edition, authored by DCI President Adam J. Fein, Ph.D., a renowned authority on pharmaceutical economics, delves into the dynamics shaping the pharmacy sector and the role of pharmacy benefit managers (PBMs) amidst evolving healthcare landscapes.
In 2023, the pharmacy industry saw prescription dispensing revenues soar to $621 billion, fueled by a surge in prescriptions for anti-obesity GLP-1 agonist drugs and a broadening market in the wake of the pandemic. Despite this growth, revenue concentration remained heavily skewed towards the largest PBM-affiliated entities. Concurrently, a significant shakeout among retail pharmacies was observed, with major chains scaling back their physical presence and smaller outlets leaving the market altogether.
This year’s report, now in its fifteenth iteration, stands as a vital resource for stakeholders seeking to navigate the intricacies of healthcare trends impacting PBMs and pharmacies. It covers a wide array of critical topics such as drug pricing strategies, rebates, biosimilars, public policy considerations, and the implications of the 340B Drug Pricing Program. The document is enriched with 262 proprietary charts, exhibits, and data tables, providing up-to-date economic insights on specialty drugs, market structures, reimbursement models, profits, manufacturer rebates, out-of-pocket expenses for patients, and prevailing industry trends.
One of the pivotal discussions in the report centers around the Inflation Reduction Act of 2022 (IRA) and its ongoing influence on Medicare Part D, along with the resultant shifts in beneficiary spending, drug pricing, pharmacy economics, and access strategies within the market. Fein projects that the ramifications of the IRA will ripple through the Medicare ecosystem and significantly impact the broader commercial drug distribution channels.
The 2024 Economic Report on U.S. Pharmacies and Pharmacy Benefit Managers emerges as an essential tool for industry professionals, offering a detailed examination of the current state and future prospects of the U.S. pharmacy and PBM sectors. It equips readers with the knowledge necessary to make informed decisions in an ever-changing healthcare environment. The report is available for purchase and download at the Drug Channels Institute website, where a free overview can also be accessed for preliminary insights.
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