The pharmaceutical space has been able to adapt the power of transactions through online portals, enough that a new report indicates the gains could reach new highs.
Retail dependant businesses have had to face the growth of e-commerce in different ways. The pharmaceutical space has been capable of adapting the potential of online retailers for sales in emerging markets. A new report indicates the gains could reach new highs.
The e-Pharma Market Analysis by Region… and Segment Forecasts 2014-2025 report–published by Research and Markets–projected the global market to be valued at $109.2 billion by 2025.
According to the report, the increase in popularity for online pharmacies has allowed more opportunities for price discounts for consumers. “In addition, increase in adoption of e-prescriptions in hospitals and other healthcare facilities is further expected to boost growth,” the report reads. Access to the internet will continue to expand in less developed areas and with it the potential to order pharmaceutical products through online retailers.
Role of emerging global markets in boost to e-Pharma
As seen with other recent reports in the pharmaceutical sector, emerging markets are new driving forces to be reckoned with when it comes to the reach of pharmaceutical needs, and medical needs entirely. Adoption of internet sales goes along with this globalization trend.
These emerging markets have unmet medical needs that go back to years of poor service. Now, according to the report, there are government initiatives alongside updated regulations and new investments causing a growth of this particular market.
“Increase in prevalence of chronic conditions and diseases across the globe is resulting in constant growth in demand for various drugs and healthcare products,” the report added.
As part of its projections and future opportunities, the report also indicates the current pharmaceutical online retailing leaders, including the likes Walmart (NYSE:WMT) and CVS Health (NYSE:CVS).
The threat of Amazon for current leaders could further expand the e-pharma market
The market received a recent shakedown with tech giant Amazon (NASDAQ:AMZN) showing signs it could be interesting in moving into the prescription drug sales market.
A report by CNBC indicated the company will decide before Thanksgiving (November 23) whether or not it will enter this competitive space. “In the past year, Amazon has ramped up its hiring and consulted with dozens of people about a potential move into the pharmacy market,” CNBC wrote.
In retaliation to this potential new disruptor, CVS Health announced it was looking to acquire health insurer Aetna (NYSE:AET). This potential deal could have a significant impact on the way CVS Health would handle the Amazon threat.
“A potential combination would diversify CVS profit streams ahead of an Amazon entry and set the stage for a new healthcare-retail delivery model,” Morgan Stanley analysts said, according to Reuters.
While the arrival of Amazon to the prescription drug sale market could cause trouble for established companies, the move would provide a significant boost to the projections of sales through online spaces for pharmaceutical products.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.