What does a pharmaceutical distributor do?

Distributors purchase and take legal possession of pharmaceuticals and manage both inventory and credit risk, allowing manufacturers to focus on their core competencies in pharmaceutical drug development and manufacturing. As logistics experts, distributors don't manufacture, prescribe, or promote drugs. Distributors also don't make clinical decisions about who should or should not receive a medication or what medication is best for a particular patient. Getting a drug starts with a prescription, and distributors help ensure that what your healthcare provider prescribes reaches your hospital, pharmacy, or other healthcare facility safely and reliably.

Pharmaceutical distributors are the middlemen who ship manufacturers' products to pharmacies and other suppliers. In addition to hospitals and pharmacy chains, more than 22,000 independent pharmacies rely on their services on a daily basis, according to Healthcare Distribution Alliance (HDA). 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 types of products sold or types of customers sold to. Nor is it the responsibility of the distributor to decide who should and who should not receive a particular medication or product, and for what type of patient it is suitable. This consolidation has been vital to drug prices, as larger distributors profit from low-cost products spread across large sections of the population, rather than buying products at a low price and selling them at a high price. Due to the unique nature of the wholesale distributor in the drug supply chain, regulations are incredibly strict when it comes to how medicines are received, stored, handled and sold.

While considerable effort and expense has been invested to innovate, develop and market medicines more efficiently, only minimal effort has been made to reconfigure manufacturing and distribution operations or adjust the pharmaceutical supply chain network. Of course, as the healthcare system and industry continue to change, distributors need to adapt their strategy to provide an efficient flow of available medicines and health-related products. Distributors handle 92% of pharmaceutical sales in the United States and deliver more than four billion prescription drugs safely and quickly. While wholesale distributors are the largest purchasers 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 program ( VFC).

Pharmaceutical distributors play an important role in the supply chain, purchasing medical products from pharmaceutical manufacturers for storage in distribution centers and warehouses across the country. Distributors should be expected to do their due diligence to ensure that their inventory is safe and that the services they provide help pharmacies provide better care for their patients. These prices are largely determined by the market, and it's not uncommon for manufacturers, distributors, and pharmacies to talk to each other to determine how much to pay for how much product, based on a host of factors such as regional demand, store brand labeling, negotiations, public opinion, and more. As a result, federal law requires rigorous and consistent rules for state licensing of Pharmaceutical Distributors in order to prevent.

As connectors of creators and caregivers, distributors enable seamless and cost-effective delivery of pharmaceuticals. Distributors and pharmacists with shared interests will find mutual benefits by working together to create optimal patient outcomes, great customer experiences, and a healthy end result for the pharmacy. The Pharma Letter provides subscribers with daily, up-to-date news, business intelligence, commentary and analysis for the pharmaceutical, biotech and generic sectors of the healthcare industry, backed by a team of respected writers with many years of experience in the field. .


Rachel Celli
Rachel Celli

Infuriatingly humble web junkie. Incurable pop culture practitioner. Unapologetic beer lover. Subtly charming social media fanatic. Passionate zombie nerd.