Pharmaceutical Wholesale and Distribution Industry will Generate $997Bn in 2018 Predicts New Study

Wednesday 12 November 2014, Amsterdam

A new report, now available on ASDReports, forecasts the worldwide pharmaceutical wholesale and distribution industry will achieve revenues of $997 billion in 2018. That prediction and others appear in Pharma Wholesale and Distribution Industry and Market: World Outlooks and Forecasts 2014-2024, published in September 2014.

That investigation predicts the global pharmaceutical wholesale and distribution (W&D) market will expand steadily during the forecast period 2014 to 2024. Growth in the industry will be driven by increasing demand for prescription drugs, especially in the emerging national markets, along with increased development of new drugs. An ageing world population and rising cancer incidence will also contribute to expansion of the W&D market. That growth in pharmaceutical W&D markets will be offset by increasing original brand-to generic drug conversions owing to drug patent expiries and budgetary rules by governments.

Shusmita Sen, a pharmaceutical industry analyst, said: “We predict the US will account for more than 35% of the global pharmaceutical wholesale and distribution market by 2024. Branded pharmaceuticals form the leading business segment for revenue generation, accounting for more than 80% of the market in 2013. However, from 2014 to 2024, that submarket will lose some of its market share to generic drug sales.

“Leading US pharmaceutical W&D companies are using mergers and acquisitions (M&A), especially with European W&D companies helping them expand in new areas. In February 2014, McKesson, the largest pharmaceutical wholesaler and distributor, announced the acquisition of 77.6% of the then outstanding common shares of Celesio, the 3rd largest European pharmaceutical wholesaler and distributor. We expect more deals to take place in the next 10 years, reshaping the industry and market.

“And, in August 2014, Walgreen announced its plans for the acquisition of the remaining 55% of Alliance Boots, the largest European pharmaceutical wholesaler and distributor. Significant consolidations will occur in emerging markets like China as well. This will lead to a greater number of national wholesalers, who can serve all regions with greater efficiency and lower costs. The growth in number of national wholesalers will be particularly important in China and India, where a large proportion of the population live in rural areas. Getting medicines to these people will open the market to a greater number of patients.

“European wholesalers have had their profit margins adversely affected by changes in government reimbursements. State payers’ budgets are finite, and although pharmaceuticals account for around 10% of healthcare costs, drug spending is often the target of cost-cutting measures. In recent years, a number of European countries announced health budget cuts, including new limits on drug prices.”

The new investigation shows revenue forecasts to 2024 at overall world market, submarket, company and national level.


First it shows individual forecasts for three submarkets:

• Original-branded pharmaceuticals – small molecules and biological agents (biologics)
• Generic prescription drugs (generics)
• Other medicine.

That study also gives individual revenue predictions to 2024 for 10 leading pharmaceutical wholesale and distribution companies, including these:

• McKesson
• Cardinal Health
• AmerisourceBergen
• Alliance Boots
• Medipal
• PHOENIX Group.

Furthermore that report analyses 11 leading national markets for pharmaceutical W&D, providing revenue forecasts to 2024 for the US, Japan, the EU5 countries and the BRIC nations. In particular the analysis explores business segments, regulations and strategies of leading companies. That work gives 100 charts, 88 tables and two research interviews.

Pharma Wholesale and Distribution Industry and Market: World Outlooks and Forecasts 2014-2024 adds to the range of analytical reports on industries and markets in healthcare.