New HDMA report snapshots state of specialty pharmacy distribution
ARLINGTON, Va. — The seventh edition of HDMA’s report on specialty pharmacy distribution, compiled by its Center for Healthcare Supply Chain Research. The 2015 edition of “Specialty Pharmaceutical Distribution: Facts, Figures and Trends is sponsored by CuraScript Specialty Distribution, Genentech and Pharmacy first, and contains insights on the state of specialty, which IMS Health valued at $124 billion in the United States in 2014.
“The Center is pleased to add the latest edition of this publication to its growing body of research on this unique pharmaceutical segment,” said Karen J. Ribler, Executive Vice President and COO of the Center for Healthcare Supply Chain Research. “As noted in this new edition, specialty distributors continued to provide extraordinary service levels to their manufacturer and dispenser trading partners, creating overall supply chain efficiencies.”
According to the report, from 2009 to 2014, branded and generic specialty sales in the United States grew at an annual compound growth rate of 12%. And the dominant force in the specialty category continues to be oncology medication, which made up 46,.3% of sales volume for distributors in 2014. Sales to physician-owned and –operated clinics went up 70% in 2014, with sales to hospitals and hospital-owned clinics dropping to 17% and 4%, respectively.
In terms of supply chain, the typical HDMA member distributor picked an average of 12,000 lines in a business day at a fill rate of 99.4%. In an average of 17 hours, the distributors ship to 27,000 unique points, with about 1.1% of selling unites being returned. Respondents who are distributors noted contracts with more than 150 manufacturers.
The full report can be purchased through the website for the Center for Healthcare Supply Chain Research.
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NACDS, A.T. Kearney release findings of digital marketing study
NEW YORK — This week at the National Association of Chain Drug Stores' Retail Advisory Board’s working group on outreach and business development, along with A.T. Kearney, presented findings about marketing efforts among retailers, CPG manufacturers and pharmaceutical companies from its “Winning with Digital Marketing“ study.
The study includes surveys and interviews with retail and CPG executives in the chain pharmacy sector and it looks at five aspects of companies’ digital marketing: strategy, organization/capabilities, process, metrics and maturity of discipline.
The study identifies a shift among retailers in particular to more strategic objectives, among them brand awareness and tailored pricing. Companies’ top five goals appear to be increasing traffic in-store or on ecommerce sites, more insights about customers, engaging and relevant customer interactions, sales increases and a desire to facilitate customers sharing ideas about the brand. However, very few of those surveyed feel that their digital marketing efforts are cutting-edge or advanced, with most ranking their efforts as “emerging.”
Though this might lead some to bring on outside parties to manage their digital media strategy, the report warns that this might not be beneficial in the long run.
“Recruiting digital marketing talent into traditional corporate environments can be difficult, with many of these individuals preferring smaller, more entrepreneurial environments,” the report said. “Nevertheless, there is a risk of creating a downward spiral: If companies continue to outsource the management and execution of their digital marketing, then they will never develop the capabilities they need to excel. And as digital marketing becomes more important, companies with an in-house digital capability may be in the best position to establish relationships with customers, promote their brands, and ultimately drive sales.
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