Market Trends of Pharmacy Benefit Management Industry
Specialty Pharmacy Segment is Expected to Witness Significant Growth Over the Forecast Period
- Specialty pharmacies provide drugs to treat rare or complex medical conditions, such as multiple trauma, head injuries, severe burns, and others. They are designed to efficiently supply drugs with special handling, storage, and distribution requirements with standardized processes. These medications are usually high-cost products used to treat complex diseases. The specialty pharmacy segment is expected to witness significant growth in the pharmacy benefit management market over the forecast period owing to the factors such as the growing demand for prescription drugs owing to the rising burden of chronic diseases and the increasing company activities.
- The growing company's activities in developing specialty pharmacy software and solutions are expected to increase segment growth over the forecast period. For instance, in April 2022, Southern Scripts launched RxCompass, a new solution designed to support United States companies and their employees in mitigating the high costs of specialty medications. Southern Scripts uses its PBM expertise and industry network to create the first member-centric pharmacy navigation solution that can lead members through a step-by-step process to choose the specialty drug management program that best addresses their unique needs at the most affordable price.
- Also, in March 2022, VPL launched TrajectRx, a clinically minded specialty pharmacy software built for pharmacists by pharmacists.TrajectRx clarifies the fulfillment process from the pharmacy to the point of patient care and aids in extending the continuity of patient care, providing compliance with payors and accrediting authorities, and ensuring medications are delivered cost-effectively and securely. Therefore, owing to the aforementioned factors, the studied market is anticipated to grow over the forecast period.
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North America is Expected to Have the Significant Market Share Over the Forecast Period
- North America is anticipated to witness significant growth in the pharmacy benefit management market over the forecast period owing to the factors such as the increasing number of medication errors, increasing adoption of pharmacy benefit management, and rising healthcare expenditure.
- According to an article published in Oxford University Press in July 2022, it has been observed that overall prescription drug spending was expected to increase from 4% in the previous year to 6% in 2022 in the United States. Thus, the increased drug spending indicates the high demand for prescription drugs in the region, which is anticipated to propel the need for pharmacy management systems, bolstering market growth.
- The growing inclination towards adopting PBM systems in the region is the key factor driving the market growth. For instance, in May 2022, the United States Sens Maria Cantwell (D-Wash.) and Chuck Grassley (D-Iowa) introduced a bill, the Pharmacy Benefit Manager Transparency Act of 2022, to reduce prescription costs by empowering the Federal Trade Commission and state attorneys general to halt unfair and deceptive PBM business practices. Also, in October 2021, a nonprofit coalition of nearly 40 companies, including United States retailers Walmart and Costco, launched a new firm that would offer pharmacy benefit management (PBM) services for employers.
- Similarly, in October 2021, Mark Cuban Cost Plus Drug Company PBC and the Purchaser Business Group on Health, a nonprofit coalition of nearly 40 large public and private employers, launched a new pharmacy-benefit management company. PBMs, on behalf of businesses, labor organizations, and governments, choose which medications patients have access to, negotiate discounts on the costs of those medications, and handle payments to pharmacies. Therefore, owing to the factors such as the rising adoption of pharmacy benefit management systems and growing company activities, the studied market is expected to grow over the forecast period.
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