“Specialty Drugs are used to treat chronic diseases such as Cancer, Multiple Sclerosis and Rheumatoid Arthritis. Specialty Drugs are injectable, oral or inhaled in nature which are prescribed by the physician for special cases. Specialty Drugs is one of the fastest growing category in the Pharmaceutical market. The Specialty Drug Distribution market will see steady growth, accounting for the fact that the use of Specialty Drugs is increasing.
The Specialty Drugs Distribution Market is estimated to be $500 million in 2015. It is estimated to grow at a CAGR of 18% between 2015-2020. The driving force behind the growth is Healthcare reforms, transition in Payer dynamics and growth of Specialty Drugs. The Specialty Drug Distribution market is Oligopolistic in nature with three players dominating the market with different pricing strategies. Such a scenario creates barriers for new entrants into the market. The companies follow a pricing discount strategy which acts as a leverage for gaining market share. There are other factors such as excellent logistics, efficient supply chain and unparalleled warehousing facilities which has kept the market growing at a fast pace.
The North America region is leading the market share geographically due to better healthcare reforms, increased use of Specialty Drugs to treat chronic diseases, better distribution facilities. The European region is slowly gaining the market share in the Specialty Drug Distribution market. The vast geographical landscape in Europe serves as a major challenge in having an efficient distribution & logistics network. The highest growth is going to be witnessed in Asia Pacific region, in countries such as India, China and Australia. The reason behind the growth is improving infrastructure, innovative distribution facilities.
The Specialty Drug Distribution market is also facing challenges which restricts the market to grow steadily. The channel restriction is one of the major issues at hand....