HDMA: Pharmaceutical sales reach nearly $305 billion

ARLINGTON, Va. — Pharmaceutical sales through HDMA-member traditional primary distributors reached nearly $305 billion in 2013, according to the 85th Edition HDMA Factbook (2014-2015), published Monday by HDMA’s nonprofit research foundation, the Center for Healthcare Supply Chain Research. This number reflects a nearly 2% increase from the previous year. Additionally, more than 90% of pharmaceutical sales are completed through HDMA-pharmaceutical distributors.  

 

“The new Factbook provides a unique snapshot of the work that goes into delivering health care to millions of people each day,” said Jeff Watson, president of Apotex and chairman of the center’s board of directors. “It is a useful resource for anybody seeking to learn about the dynamics of the pharmaceutical industry.”

 

As reported by IMS Health, total U.S. spending on pharmaceuticals also increased, reaching $329 billion in 2013 from $319.1 billion in 2012. For distributors, specifically, prescription products continue to make up the majority of their net sales, accounting for 98%. Of these prescription product sales, branded-prescription products were unchanged from 2012 at 64%; brand-name specialty products accounted for nearly 21% of sales; and, unlike previous years of growth, generic sales decreased slightly to 13%.

 

HDMA traditional distributors kept an average inventory of nearly 56,000 SKUs in 2013, received from nearly 1,400 manufacturers. On a typical day, more than 98,000 units were picked per distribution center (each order having an average of nine lines picked), with nearly 5,000 orders handled. As many as 83% of distributors use automated-picking methods. Approximately 15 million prescription medicines and healthcare products are delivered by distributors each business day. 

 

“HDMA-member distributors continue to provide value in the pharmaceutical supply chain by delivering millions of products each business day with accuracy and efficiency,” said Karen Ribler, EVP and COO of the Center. “With the impending regulatory requirements of the Drug Supply Chain Security Act, it will be interesting to see the dynamics of the industry evolve as new technologies are introduced.” 

 

Published annually, the HDMA Factbook is a comprehensive resource illustrating traditional distributor-performance metrics and trends in the pharmaceutical supply chain, with data collected at the corporate level of HDMA’s membership and reputable secondary sources. The book provides insights into such areas as distributor demographics and characteristics, finance, operations, information systems, customers and market characteristics, as well as international distribution. 

 

This 2014–2015 edition is produced with support from Boehringer Ingelheim Pharmaceuticals; Apotex Corporation; RDC-Rochester Drug Cooperative; TEVA Pharmaceuticals USA; AstraZeneca Pharmaceuticals; Ranbaxy; Smith Drug Company, Div. J M Smith Corporation; and Pharmacy First.