How profitable will drug wholesalers be in (2022)

How profitable will drug wholesalers be in (2022)

What is a pharmaceutical wholesaler
Wholesale drug distributors buy drugs directly from manufacturers and then sell the purchased drugs to pharmacies for a profit, which is a very important part of the overall pharmaceutical trade market, so countries have always been very strict control of wholesale drug distributors. In the case of the United States, each state has a special agency responsible for the licensing of wholesale drug distributors, selling drugs to consumers without a license is a crime.

Simple business model
The business model of drug distributors is simple: they buy drugs in bulk at low prices and sell them to customers and pharmacies at higher market prices, with the difference being profit. Pharmacies need to increase their sales prices in order to make a profit, so consumers often pay more because of the cost of the supply chain.
Consumers are finding it more cost effective to buy drugs directly from distributors rather than pharmacies, and drug wholesalers are still profiting from direct sales, only they are retailing to patients rather than pharmacies, a business model that has grown significantly in recent years

Reliable drug wholesalers can keep their costs low and their inventory high to offer consumers better value for money, but pharmacies will offer consumers more choices, so the relationship between drug distributors and pharmacies is both cooperative and competitive.

For drug retailers drug distributors can bring.
1. Reduced inventory pressure for pharmacies or retailers.
2. Provide a more comprehensive supply of drugs to retailers, pharmacies and hospitals, covering the full range of drugs.
3. Increase retail prices to earn profits while also improving service quality.