How Pharmaceutical Distributors Make Money

Pharmaceutical distributors are experts in logistics and packaging, and they make money by charging manufacturers a percentage of the wholesale acquisition cost (WAC) of their products, or list price, for distribution services. They don't manufacture, prescribe, or promote drugs, but they do ensure that what your healthcare provider prescribes reaches your hospital, pharmacy, or other healthcare facility safely and reliably. Wholesalers benefit from a combination of scale and opacity. They continuously monitor, protect and improve the safety of the pharmaceutical supply chain to ensure that medicines are handled, stored and delivered appropriately and safely.

Without them, pharmaceutical companies may have to designate their own distribution team or have to give their sales team additional work to distribute along with sales as well. The complexity of the drug supply chain and the new regulation in space mean that the pharmaceutical landscape is changing. For example, mail-order pharmacy PillPack sorts and packages patients' medications based on their dosing schedules and then delivers them directly to patients' homes. Patients no longer have to go to a doctor, payer, PBM, wholesaler and pharmacy to receive these generic drugs, but can use a single application to receive and complete a subscription.

The pharmaceutical wholesale business in India is one of the most profitable businesses in India and will not be affected by any pandemic situation.

Rachel Celli
Rachel Celli

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