The role of pharmaceutical wholesalers is to act as an intermediary between the pharmaceutical industry and its customers (for example, wholesale distributors are the second link in the drug supply chain). Purchase pharmaceuticals from manufacturers for distribution to a variety of different locations, such as pharmacies, hospitals, clinics, doctors' offices, and laboratories. Some distributors sell a variety of products, including medicines and medical equipment, while others specialize in the types of products sold or types of customers to whom it is sold. Whether you're an independent pharmacy or part of a pharmacy chain, wholesale pharmacy supplies are a sensible way to increase revenue and save money.
Wholesale distributors buy medicines (and other equipment) from pharmaceutical companies, store them in warehouses and other holding facilities, and sell them to pharmacies, etc. Full-line wholesalers implement a package of practical measures to ensure that the risk of counterfeit drugs entering the supply chain is minimized. The role of the wholesaler in managing the life sciences supply chain is to make the process of purchasing drugs from pharmaceutical manufacturers more efficient. Pharmaceutical manufacturers manage drug distribution from point of production to drug wholesalers and, in some cases, directly to retain pharmacy chains, specialty pharmacies, hospital chains, and some health plans.
Wholesalers tend not to negotiate these prices, as there is usually a competitor in every vital market. Typically, the consumer pays more through the supply chain, as pharmacies also need to derive benefits from medicines. Wholesale vitamins sell a lot, for example, but pharmacies compete with big box stores, vitamin stores, and health food stores for those consumer dollars. While wholesale distributors are the largest buyers of manufacturers, in some cases, drug manufacturers also distribute products directly to government buyers, including the AIDS Drug Assistance Program (ADAP), the Veterans Administration, and the Vaccines for Children (VFC).
The pharmacy category can include independent and chain pharmacies, grocery stores, or large stores with pharmacies and mail-order pharmacies. Taking into account the purely economic aspects of the model, if the delicate balance cannot be maintained, full-line wholesalers would have re-evaluated the means through which they could distribute slow-moving drugs as part of the full product range. The full-line wholesale business thrives best when there is a strong and stable market environment in the countries in which they are active, as well as a strong legislative and regulatory framework that ensures patients continuous access to medicines. Pharma IQ met with Monika Derecque-Pois, CEO of the European Association of Full-Line Pharmaceutical Wholesalers (GIRP), to talk about how the role of the wholesaler has evolved in recent years.
With specialty drugs accounting for approximately 30% of wholesale revenues, this business model has experienced significant growth over the past two years. Full-line pharmaceutical wholesalers carry and distribute the full range of products in range and depth within the framework established by authorities and the market to meet the needs of those with whom they maintain normal business relationships. Full-line wholesalers ensure a safe and secure pharmaceutical supply chain by implementing a wide range of measures to achieve this goal. .