- The consolidation of corporate pharmacy chains and constantly increasing competition are two of the main factors contributing to the problems facing independent and community pharmacies
- The pharmaceutical sector is incredibly lucrative, with large players such as Amazon also attempting to secure part of the market; as a result of such large developments, community pharmacies have been experiencing declining profits and margins
- Trxade Group is working to empower independent pharmacy owners by providing valuable support and information about affordable supplying options; access to real-time information gives small pharmacies the tools needed to compete against large industry players
Growing competition and the consolidation of corporate pharmacy chains are two of the biggest challenges that small and independent pharmacies have to overcome. Companies like Trxade Group Inc. (OTCQB: TRXD) are working on the development of technological solutions that will enable small industry players to remain competitive.
A number of pharmacy chains dominate the prescription drug market in the U.S. Statistics from 2018 suggest that the biggest industry player alone holds 24.2 percent of the market, followed by the second largest chain, which holds 17.5 percent (http://nnw.fm/iUUN4). Adding declining margins to the mix makes it very difficult for small community pharmacies to stay afloat.
One of the latest developments that has impacted the business of small pharmacies in the U.S. is the Amazon acquisition of PillPack (http://nnw.fm/WL6Ea). The deal was concluded in 2018, but the effect it’s having on the pharmaceutical market is only being amplified with the passage of time.
PillPack offers online sales, delivering most of the medications that consumers can get in brick-and-mortar pharmacies. Automatic refills and 24/7 customer support add to the convenience of the service and boost the threat that smaller industry players are facing.
All of these major developments are contributing to a trend that has been ongoing for several years. Since 2016, there has been a sustainable declining profits trend among independent pharmacies (http://nnw.fm/u5EiW). During that year alone, overall gross margins for prescription and non-prescription products were 22.1 percent, in comparison to 24 percent in 2010. As a result of such trends, the number of independent pharmacies has been steadily declining.
However, community pharmacies and small businesses do have an opportunity to fight back and ensure their economic survival. This is where Trxade Group, an integrated pharmaceutical services company that focuses on supporting independent and community-based pharmacies, comes in.
The company’s Trxade Exchange platform creates new and widens existing distribution channels for independent pharmacies. The service enables members of the platform to view manufacturer, wholesaler and buyer group prices. The real-time information makes it easy to access the most affordable supplies and improve overall margins.
As of September 2019, Trxade Exchange’s membership has reached 10,500 pharmacies out of the 24,000 independent entities operating in the U.S. Joining the platform makes it easier for smaller industry representatives to compete with the large retail chains that have solid, affordable supply agreements because they can buy in bulk.
Trxade Group is constantly working to empower small businesses. Apart from its Trxade Exchange platform, the company is developing additional products to maximize data analysis capabilities and inventory management.
For more information, visit the company’s website at www.TrxadeGroup.com
NOTE TO INVESTORS: The latest news and updates relating to TRXD are available in the company’s newsroom at http://nnw.fm/TRXD
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