Email
Print
Specialty Drug Distribution Market - Forecast(2023 - 2028)
Specialty Drug Distribution Market Overview
Specialty Drug Distribution Market Size is estimated to reach $747.6 million by 2027 and it is poised to grow at a CAGR of 13.5% over the
forecast period of 2022-2027. High cost, high complexity or high touch drugs
are known as specialty drugs. The price for specialty drugs is higher or equal
to $670 per month. Pharmaceuticals known as specialty drugs are prescribed to
patients with chronic conditions like cancer, rheumatoid arthritis, lysosomal
acid lipase deficiency, inflammatory bowel disease and multiple sclerosis.
Specialty pharmaceuticals are expensive injectable or oral medications.
High-complexity medications need specific distribution, handling and
temperature management. The main drivers propelling the market's expansion are
the rising prevalence of chronic diseases and the growing need for specialty medications
around the world. According to the arthritis organization more than 54 million
adults and almost 300,000 children have arthritis or another type of rheumatic
disease in 2021. Additionally, by 2040, the number of adults in the U.S.,
diagnosed with arthritis is estimated to be more than 78.4 million.
Specialty wholesalers handle distribution to smaller specialty
pharmacies and retail pharmacies. In the United States more than 32,000
pharmacy locations which are half of the entire U.S, the pharmacy industry act
as contract pharmacies for the hospitals and other healthcare providers that
participate in the 340B program. Section 340B of the Public Health Service Act
requires pharmaceutical manufacturers participating in Medicaid to sell outpatient
drugs at discounted prices to health care organizations that care for many
uninsured and low-income patients. Such a growing number of specialty drug distributors
drive the growth of the Specialty Drug Distribution Industry over the forecast
period 2022-2027.
Specialty Drug Distribution Market Report Coverage
The report: “Specialty Drug Distribution Market Forecast
(2022-2027)" by Industry ARC, covers an in-depth analysis of the following
segments in the Specialty Drug Distribution Market.
Key Takeaways
- Geographically, North America held a dominant market share in the year 2021, owing to the growing prevalence of chronic diseases such as rheumatoid arthritis, lysosomal acid lipase deficiency, inflammatory bowel disease, multiple sclerosis and the growing demand for specialty drugs fuel the growth of the Specialty Drug Distribution Market Size in this region.
- The Specialty Drug Distribution Market is predicted to increase owing to the growing demand for specialty drugs and the increasing prevalence of chronic disease in the market.
- However, the high cost of transportation and low availability of cold chains may limit the growth of the Specialty Drug Distribution Market over the forecast period 2022-2027.
- A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the Specialty Drug Distribution Market Report.
Specialty Drug Distribution Market: Market Share (%) by region, 2021
For More Details on This Report - Request for Sample
Specialty Drug Distribution Market Segment Analysis - by Application
Specialty Drug Distribution Market based on the application can be
further segmented into AIDS drugs, Hemophilia drugs, Multiple Sclerosis drugs,
Oncology drugs, lysosomal acid lipase deficiency drugs, inflammatory bowel
disease drugs and Rheumatoid Arthritis drugs. The Rheumatoid Arthritis drug segment
held a dominant market share in the year 2021. This is owing to the variety of specialty
drugs available to treat rheumatoid arthritis. For instance, in April 2022, the
U.S. Food and Drug Administration (FDA) approved RINVOQ for the treatment of ankylosing
spondylitis (AS) and Rheumatoid Arthritis. Such a number of specialty medicine
launched by key market players to treat rheumatoid arthritis and the need for
such drugs around the world drive the growth of the Specialty Drug Distribution
Market Share.
However, Oncology drugs are estimated to
grow with the fastest CAGR of 14.8% over the forecast period
2022-2027. This is owing to the growing cases of cancer patients and the
need for specialty drugs for treatment. The American Society of Health-System
Pharmacists (ASHP) predicts that the pipeline for specialty drugs would increase
by 8% annually until 2025. In July 2022, the Food and Drug Administration
(FDA), approved crizotinib for myofibroblastic tumors. In June 2022, FDA
approved lisocabtagene maraleucel for adult patients with large B-cell lymphoma.
Also, in June 2022, FDA approved dabrafenib (Tafinlar, Novartis) in combination
with trametinib (Mekinist, Novartis) for the treatment of metastatic solid
tumors. Such a growing number of drugs approved by the FDA for the treatment of
cancer fuel the growth of the Specialty Drug Distribution Market Share over the
forecast period 2022-2027.
Specialty Drug Distribution Market Segment Analysis - by Distribution Channel
Specialty Drug Distribution Market based on the distribution
channel can be further segmented into Hospitals & Care Providers,
Independent Pharmacies, Large Chain Pharmacies, Online Stores and Specialty
Pharmacies. The Hospitals & Care Providers segment held a dominant market
share in the year 2021. This is owing to the growing cases of chronic diseases and
the increasing need for hospitalization. In order to diagnose and cure severe
acute disease, hospital treatment is crucial. However, the majority of
hospitalized older patients also have a number of chronic conditions that are
unrelated to the original reason for hospitalization. Such growing cases of
chronic disease and the need for specialty drugs drive the growth of the
Specialty Drug Distribution Market Share.
However, Specialty Pharmacies are estimated to grow with the
fastest CAGR of 15.2% over the forecast period 2022-2027. This is owing to
the growing number of specialty pharmacies and the low cost of drugs compared
to hospitals that provided specialty drugs. According to a recent America's
Health Insurance Plans (AHIP) report, hospitals typically charge twice as much
for some medications as specialized pharmacies charge. The study from 2018 to
2020, found that hospital-administered medications cost, on average, $7,000
more per single treatment than those purchased from specialty pharmacies. Such
price differences between the hospitals and pharmacies fuel the cost of the
specialized drug and surge demand for specialty pharmacies. Hence,
cost-effective specialty drugs offered by specialty pharmacies fuel the growth
of the Specialty Drug Distribution Market Share over the forecast period
2022-2027.
Specialty Drug Distribution Market Segment Analysis - by Geography
The Specialty Drug Distribution Market based on Geography can be
further segmented into North America, Europe, Asia-Pacific, South America and
the Rest of the World. North America held a dominant market share of 29% in the
year 2021. This is owing to the developed healthcare sector in this region and the
growing demand for specialty medicines owing to the rising prevalence of
chronic diseases. According to Crohn’s Colitis Foundation, about 1.6 million
Americans suffer from inflammatory bowel disease (IBD) - which includes
Crohn's disease and ulcerative colitis. Additionally, well-developed logistic
solutions further fuel the growth of the specialty drug distribution market in
this region. According to Datex Corporation, business-to-business logistics
technology solution, one-third of all the spending on drugs in America is on
specialty medications. Such favorable conditions and raising demand fuel the growth
of the Specialty Drug Distribution Market Size in this region.
Furthermore, Asia-Pacific is estimated to grow with the fastest CAGR over the forecast period 2022-2027. This is owing to the large population living in this region and the growing demand for specialty drugs to minimize mortality as a result of chronic diseases. According to OECD, cancer is the second cause of death after Cardiovascular Disease (CVD) in this region. As per Cancer Atlas, there is more than 5.2 million cancer deaths occurred in this region in 2019. Such growing cases of mortality due to chronic disease create demand for specialty medicine which fuels the growth of the Specialty Drug Distribution Market Size over the forecast period 2022-2027.
Specialty Drug Distribution Market Drivers:
Growing Demand for Specialty Medicine Drives the Market Growth.
The growing prevalence of chronic diseases such as rheumatoid
arthritis, lysosomal acid lipase deficiency, inflammatory bowel disease, multiple
sclerosis, diabetes and others, create demand for specialty drugs for
treatment. According to the National Multiple Sclerosis Society, about 2.3 million
people live with multiple sclerosis around the world. Also, as per a research
article published by ‘Ampersand Health’ in May 2022; 1 in every 123 people in
the UK lives with either Crohn’s disease or ulcerative colitis. For the treatment
of inflammatory bowel disease, drugs like Mesalamine, Corticosteroids, Immunomodulating
drugs and others are used depending on the patient's treatment and condition. Such a growing prevalence of chronic disease surges demands for specialty medicines and
fuels the growth of the Specialty
Drug Distribution Industry over the forecast period
2022-2027.
Better Logistic Facilities Enhances Industry Expansion.
Pharmaceutical distributors are at the heart of the healthcare ecosystem.
With the growing adoption of technology in every field, the logistic and
delivery system upgrades itself with automation and software with new
innovative technology. Healthcare logistics such as Bollore, DSV and others
plays an important role in distributing medicine from producers to pharmacies and
retailers. The new innovation, technologies, partnerships and collaborations are responsible
for the growth of logistics as well as specialty drug distribution systems. For
instance, in March 2022, DSV opened a 95000 m2 warehouse and office
premises near Copenhagen. In July 2022, Bolloré Logistics and Air France KLM
Martinair Cargo signed an agreement aimed at continuing and further expanding
both parties’ sustainability partnership. Such growth in key logistics market
players drives the growth of the Specialty Drug Distribution Industry over the
forecast period 2022-2027.
Specialty Drug Distribution Market Challenges
Low
Availability of Cold Chains Hampers Market Growth
The specialty medicines are very sensitive to heat and to
distribute such highly sensitive medicines cold chain is necessary. The cold
chain includes various types of refrigerators, cold storage facilities,
disposable cold boxes and many more things for operation. Sensitive
medications are kept within a specified temperature range as they circulate
through the supply system via a properly operating cold chain delivery system.
Unless medication is certified stable at other temperature ranges, the US Food
and Drug Administration mandates that refrigerated biologics be stored and
transported between 2°C and 8°C (36°F and 46°F). Temperature changes during
transportation cause the worldwide pharmaceuticals business to lose medicines
valued at more than $15 billion each year, as per India Brand Equity Foundation
(IBEF) report 2020. Such a huge loss of pharmaceuticals owing to the low
availability of cold chains may hamper the growth of the Specialty Drug
Distribution Industry over the forecast period
2022-2027.
Specialty Drug Distribution Industry Outlook
Product launches, mergers and acquisitions, joint ventures and
geographical expansions are key strategies adopted by players in the Specialty
Drug Distribution Market. The top 10 companies in the Specialty Drug
Distribution Market are:
- H.D. Smith
- Morris & Dickson
- Wal-Mart
- MSC Industrial
- W. W. Grainger Inc.
- Fastenal Company
- Cintas Corporation
- Amerisource Bergen
- Mckesson Corporation
- Cardinal Health
Recent Developments
- In June 2022, MSC INDUSTRIAL SUPPLY CO, a premier distributor of Metalworking and Maintenance, Repair and Operations supplies to industrial customers throughout North America, announced to acquisition Engman-Taylor, a distributor of metalworking tools and supplies. Under the agreement, Engman-Taylor will continue to do business under its current name after becoming an MSC company. Engman-Taylor will be able to offer customers access to MSC's 2 million-plus products, inventory management and other supply chain solutions.
- In January 2022, Walmart announced a strategic partnership with Ribbit Capital to create a fintech start-up. This new venture will develop and offer innovative and affordable financial solutions” to customers and employees of Walmart.
- In June 2020, Grainger, the leading broad line supplier of maintenance, repair and operating (MRO) products serving businesses and institutions announced it has entered into a definitive agreement to sell its distribution business in China, Grainger China LLC. This divestiture will better enable Grainger to focus on its key businesses and geographies.
Relevant Titles
Report Code: HCR
0064
Warehouse Robotics Market - Industry Analysis, Market Size, Share,
Trends, Application Analysis, Growth and Forecast Analysis
Report
Code: AIR 0025
Report Code: HCR 0366