Pharmacy margins under pressure despite revenue surge
Pharmacy margins are under pressure as new “blockbuster” products arrive on the shelves and the price of old favourites slump.
The cumulative value of the retail pharmacy market (or pharmacy dispensing revenue) has surged 9% higher than the same time last year, accoring to market analysts NostraData’s latest market update.
But the growth is caused by the arrival of five new “blockbuster” products, some of which come with a high price tag and low margins for pharmacies.
These are Hepatitis C products Sovaldi, Harvoni and Daklinza; and Mekinist (for melanoma) and Xeljanz (for rheumatoid arthritis).
NostraData director Mike Da Gama says that without the Hep C products, the retail dispensing market would have grown only 2%. And without Mekinist and Xeljanz, growth all but disappears.