Pharma Wholesale Consulting
The growth of the OTC & Pharma Wholesale & Distribution industry is a result of the high demand for medicines and the services that pharma suppliers and wholesalers provide. The leading Pharma experts predict that the world pharmaceutical Wholesale & Distribution market will continue to expand steadily over the next decade. Among the main reasons for such growth are aging populations and Pharma & OTC companies’ expansion to the Emerging Markets. Moreover vertical and horizontal integration is a common way for pharma wholesalers to grow.
Selected Wholesale/Distribution projects we at Chameleon Pharma have worked on
We have supported the biggest Russian/CIS wholesaler to conduct an internal audit and suggest improvements in order to qualify for a substantial 3 digit Mio. bank loan in order to be able to extend the wholesale business to other countries.
We have consulted a European top 10 Pharma wholesaler to analyse the dispensing process in order to identify distribution improvements in the business model and to reduce the cost per delivery and increasing efficiency.
Supported a European Wholesaler to inter into the pharmacy retails segment in CIS/CEE region.
Assisted a US/Europe wholesaler in the strategy process for vertical and horizontal integration targets.
Pharma Retail Business
Most Pharma distributors have expanded their businesses in retail through buying or building up pharmacy chains or private products. Moreover, many Pharma Wholesale players also expand in the areas of contract manufacturing and sales and marketing services, which seem to have better margins. In a few cases we have observed the development of regional Wholesale & Distribution companies e.g. in Russia. As of know in the CIS region there is only one Pharma distribution player offering services to the OTC & Pharma industry for all of the region’s countries. Many big wholesalers and distributors are taking either a forwards or backwards approach to secure their businesses at different stages of the wholesale and distribution chain. Forward approaches include the acquisition of pharmacies and pharmacy chains, whereas backwards approaches include the acquisition of contract manufacturers.
The last few years have seen the large US drug wholesaling industry undergo dramatic changes. Drug distribution revenues have declined for the first time ever. Understanding the implications of the Wholesale & Distribution industry’s evolution has never been more critical.
Wholesalers and distributors growth in Emerging Markets
Since mature markets have mostly already been consolidated, many big wholesalers and distributors are acquiring smaller suppliers in Emerging Markets to expand their operations. The largest companies in the market are those based in big home markets like the US. However, companies focused on expansion in Emerging Markets will experience the highest rate of growth over the next decade. Those companies will accrue market shares.
The demand for Pharma distribution is driven by the need to treat illnesses and diseases. The profitability of individual Pharma distribution companies is determined by the efficient distribution of a wide variety of drugs and medications. This is because the prices that can be achieved for their services are mostly similar across industry players. Large companies compete mainly on price, size of generic drug portfolio, product volume and variety and the quality of value-added support services such as supply chain management. Smaller companies can compete by focusing on rural areas, independent community pharmacies or the distribution of drugs that have special handling requirements.
About Chameleon Pharma Consulting
We at Chameleon Pharma Consulting are the experts with more than 20 years of experience in areas such as Consumer Healthcare, Pharma Rx, Cosmetics, Food Supplements, FMCG, Wholesale, Retail, Production.