New Drug Channels Institute Study Analyzes How Healthcare Reform Will Affect U.S. Prescription Drug Distribution

Posted: Wednesday, September 25, 2013

PHILADELPHIA (BUSINESS WIRE) September 25, 2013—Today the Drug Channels Institute, a leading management educator for and about the pharmaceutical industry, released the results of its exclusive, in-depth analysis of the highly dynamic prescription drug distribution industry. In this provocative report, the institute analyzes how U.S. healthcare reform will affect wholesalers. It cites such factors as the healthcare coverage expansion, new government requirements for prescription drug coverage, pending Medicaid pharmacy reimbursement changes, and expansion of the 340B drug discount program.

The report also analyzes why the industry’s top three companies—AmerisourceBergen, Cardinal Health, and McKesson—have recorded their first decline in drug distribution revenue growth. The finding is one of many new revelations and trends in Drug Channels Institute’s new 2013–14 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors. Drug Channels Institute CEO Adam J. Fein, Ph.D., the study’s author and a widely regarded expert on pharmaceutical economics, says, “The substitution of generic drugs for brand-name drugs is dramatically reshaping the U.S. pharmaceutical supply chain.”

This comprehensive, 168-page analysis of the $300 billion U.S. drug distribution industry thoroughly dissects its interactions with the U.S. healthcare system. With 72 proprietary charts, exhibits, and data tables, this new research report is the most complete examination of the pharmaceutical distribution industry’s economics, market structure, growth rates, and profit trends.

The report reveals how wholesalers and distributors are profiting from the growth in expensive specialty medications that treat such illnesses as cancer, multiple sclerosis, and rheumatoid arthritis. “Over the next few years, wholesalers and distributors could benefit from the pharmaceutical industry’s shift from traditional brand-name drugs to specialty drugs,” Fein said. “However, they risk being cut out of the changing specialty market, as third-party payers utilize specialty pharmacy channels and patient care shifts from community practices to hospital outpatient departments.”

To purchase and immediately download the new report, please visit

About Drug Channels Institute
Drug Channels Institute, a division of Pembroke Consulting, Inc., is a leading provider of specialized management education and computer-based training for and about the pharmaceutical industry. To learn more about its products, visit To access Dr. Fein’s popular Drug Channels blog, visit

Media Contact:
Angela Henson
Pembroke Consulting, Inc.
215-523-5700 extension 14


Source: Business Wire