Consumables, drugs to see slower market growth in 2013, study finds
NEW YORK — Growth in the consumer products market is likely to slow down over the next five years, while pharmacy retailers will see a profit windfall due to the generic drug cycle, according to a new report.
The report, from Guggenheim Securities, found that the $1.8 trillion market for consumables — which the firm uses to describe goods like foods, beverages, drugs and other medical products — will grow by 3-3.5%, compared with 4.5% over the prior two decades, due to a combination of economics and demographics. At the same time, consumer interest in a "value and convenience" model was driving market share to low-cost retailers like Costco, Kroger, Dollar General, Family Dollar and Five Below.
In particular, food and beverages grew by 0.5% in November 2012, compared with 3.5% in the first half of 2012, while drugs and other medical products grew by 3.2%, down from 4.7% in the first half of 2012.
Overall, the report said, retailers whose competitive positioning allows them to suffer less will fare better price-wise, while those that don’t require a healthy top line to succeed, such as drug stores, will outperform. Guggenheim issued "Buy" ratings for the stock of Dollar General, Family Dollar, CVS, Walgreens, Rite Aid, Kroger and Five Below.
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Chronic disease patients want online services from drug companies, study finds
NEW YORK — Demand among consumers for online services from drug companies to help manage chronic conditions is strong, according to a new study from healthcare market research firm Manhattan Research.
The ePharma Consumer — 2012 study, based on an online survey of 6,607 adults conducted in the last three months of 2012, found that 30% of online consumers with a chronic condition and 38% of caregivers are interested in registering for a patient-support program that would give access to a range of services, such as financial assistance, meal plans and recipes, condition-management tools and a hotline of registered nurses. Current adoption of such programs varies considerably from one condition to another; for example, 41% of online patients with multiple sclerosis used one. In addition, 75% of online consumers using online pharma patient support programs said they feel confident their prescriptions are right for them.
"Patients are interested in patient support programs from pharma, and they don’t necessarily mind registering for access," Manhattan Research VP research Monique Levy said. "At the same time, pharma isn’t top-of-mind as a destination, so marketers must consider partnering with other health resources such as general health websites, pharmacies and hospitals in an effort to gain traction for these programs."
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NACDS adds new specialty pharmacy session to Regional Chain Conference agenda
ALEXANDRIA, Va. — The National Association of Chain Drug Stores has expanded its program lineup for the upcoming 2013 Regional Chain Conference to now include a new session of specialty pharmacy.
The conference will take place Feb. 3 to 5 in Fort Lauderdale, Fla., and is designed to address the challenges facing senior retail executives who operate up to 250 stores.
The new "Developing Specialty Pharmacy" session is scheduled to take place on Feb. 3 and will be presented by Gary Cohen, CEO of the National Association of Specialty Pharmacy, and Michael Nameth, acting executive director of NASP and CEO of Town Total Health.