Specialty Drug Distribution Market - Forecast, 2024 - 2030
Specialty Drug Distribution Market Overview
Specialty Drug Distribution Market Size is forecast to reach $ 1093 Million by 2030, at a CAGR of 13.50% during forecast period 2024-2030. High cost, high complexity or high touch drugs are known as specialty drugs. The price for specialty drugs is higher or equal to $670 per month. Pharmaceuticals known as specialty drugs are prescribed to patients with chronic conditions like cancer, rheumatoid arthritis, lysosomal acid lipase deficiency, inflammatory bowel disease and multiple sclerosis. Specialty pharmaceuticals are expensive injectable or oral medications. High-complexity medications need specific distribution, handling and temperature management. The main drivers propelling the market's expansion are the rising prevalence of chronic diseases and the growing need for specialty medications around the world. According to the arthritis organization more than 54 million adults and almost 300,000 children have arthritis or another type of rheumatic disease in 2021. Additionally, by 2040, the number of adults in the U.S., diagnosed with arthritis is estimated to be more than 78.4 million.
Specialty wholesalers handle distribution to smaller specialty pharmacies and retail pharmacies. In the United States more than 32,000 pharmacy locations which are half of the entire U.S, the pharmacy industry act as contract pharmacies for the hospitals and other healthcare providers that participate in the 340B program. Section 340B of the Public Health Service Act requires pharmaceutical manufacturers participating in Medicaid to sell outpatient drugs at discounted prices to health care organizations that care for many uninsured and low-income patients. Such a growing number of specialty drug distributors drive the growth of the Specialty Drug Distribution Industry over the forecast period 2024-2030.
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Specialty Drug Distribution Market Report Coverage
The report: “Specialty Drug Distribution Market Forecast (2024-2030)" by Industry ARC, covers an in-depth analysis of the following segments in the Specialty Drug Distribution Market.
by Type: Full line Wholesalers and Specialty Distributors.
by Application: AIDS drug, Hemophilia drug, Multiple Sclerosis drug, Oncology drug, lysosomal acid lipase deficiency drug, inflammatory bowel disease drug and Rheumatoid Arthritis drug.
by Distribution Channel: Hospitals & Care Providers, Independent Pharmacies, Large Chain Pharmacies, Online Stores and Specialty Pharmacies.
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by Geography: North America (the U.S., Canada and Mexico), Europe (Germany, United Kingdom (U.K.), France, Italy, Spain, Russia and the Rest of Europe), Asia Pacific (China, Japan India, South Korea, Australia and New Zealand and Rest of Asia Pacific), South America (Brazil, Argentina, Chile, Colombia and Rest of South America) and Rest of the World (the Middle East and Africa).
Key Takeaways
Specialty Drug Distribution Market Segment Analysis - by Application
Specialty Drug Distribution Market based on the application can be further segmented into AIDS drugs, Hemophilia drugs, Multiple Sclerosis drugs, Oncology drugs, lysosomal acid lipase deficiency drugs, inflammatory bowel disease drugs and Rheumatoid Arthritis drugs. The Rheumatoid Arthritis drug segment held a dominant market share in the year 2021. This is owing to the variety of specialty drugs available to treat rheumatoid arthritis. For instance, in April 2022, the U.S. Food and Drug Administration (FDA) approved RINVOQ for the treatment of ankylosing spondylitis (AS) and Rheumatoid Arthritis. Such a number of specialty medicine launched by key market players to treat rheumatoid arthritis and the need for such drugs around the world drive the growth of the Specialty Drug Distribution Market Share.
However, Oncology drugs are estimated to grow with the fastest CAGR of 14.8% over the forecast period 2024-2030. This is owing to the growing cases of cancer patients and the need for specialty drugs for treatment. The American Society of Health-System Pharmacists (ASHP) predicts that the pipeline for specialty drugs would increase by 8% annually until 2025. In July 2022, the Food and Drug Administration (FDA), approved crizotinib for myofibroblastic tumors. In June 2022, FDA approved lisocabtagene maraleucel for adult patients with large B-cell lymphoma. Also, in June 2022, FDA approved dabrafenib (Tafinlar, Novartis) in combination with trametinib (Mekinist, Novartis) for the treatment of metastatic solid tumors. Such a growing number of drugs approved by the FDA for the treatment of cancer fuel the growth of the Specialty Drug Distribution Market Share over the forecast period 2024-2030.
Specialty Drug Distribution Market Segment Analysis - by Distribution Channel
Specialty Drug Distribution Market based on the distribution channel can be further segmented into Hospitals & Care Providers, Independent Pharmacies, Large Chain Pharmacies, Online Stores and Specialty Pharmacies. The Hospitals & Care Providers segment held a dominant market share in the year 2021. This is owing to the growing cases of chronic diseases and the increasing need for hospitalization. In order to diagnose and cure severe acute disease, hospital treatment is crucial. However, the majority of hospitalized older patients also have a number of chronic conditions that are unrelated to the original reason for hospitalization. Such growing cases of chronic disease and the need for specialty drugs drive the growth of the Specialty Drug Distribution Market Share.
However, Specialty Pharmacies are estimated to grow with the fastest CAGR of 15.2% over the forecast period 2024-2030. This is owing to the growing number of specialty pharmacies and the low cost of drugs compared to hospitals that provided specialty drugs. According to a recent America's Health Insurance Plans (AHIP) report, hospitals typically charge twice as much for some medications as specialized pharmacies charge. The study from 2018 to 2020, found that hospital-administered medications cost, on average, $7,000 more per single treatment than those purchased from specialty pharmacies. Such price differences between the hospitals and pharmacies fuel the cost of the specialized drug and surge demand for specialty pharmacies. Hence, cost-effective specialty drugs offered by specialty pharmacies fuel the growth of the Specialty Drug Distribution Market Share over the forecast period 2024-2030.