It is well known that there are many industries in the United States of America right now have an intense labor shortage. A whole lot worse in most of these industries you will find not enough kids in school going after the correct college degrees in order to work in these industries. Even worse additionally is the fact that over regulation in numerous industries is causing ongoing education requirements and making it tougher for individuals to maintain licenses to even work in the market.
One industry that is certainly within a huge labor shortage is definitely the pharmacy business. Companies like Rite Aid and Eckerd Drugs use a really tough time securing people to work behind the counters inside the pharmacy. Since Rite Aid Pharmacy christmas hours have merged this could assist the labor shortage temporarily, however meanwhile Wal-Mart has entered the marketplace in a big way. What this means is the labor shortage will likely continue.
Now you ask; exist too many drugs on the market for the pharmacy professionals to remain high on all the information or are the requirements now to get involved with the market too tough and university students are shying from that career path? We need more pharmacy professionals and that we need them yesterday. As the quantity of people and ratio of “old to young” inside our nation climbs we are going to also view the labor shortages become a little more critical.
The Merger Between Eckerd Drug and Rite Aid could have helped a little however, not much since only a few stores will be actually closing unless these people were down the street from one another so we know Wal-Mart is going to be picking up the slack if any customers wind up switching and they can be on the marketplace for 1,000s of brand new pharmacists too.
Rite Aid ranks third (fourth, behind Walmart when it comes to prescription revenues) with market cap of $1.49 Billion, $26.1 Billion in revenue ($17.1B from prescription revenues), operates 4714 pharmacies since February 2011 and it has an S&P rating of B-.
Investors purchase properties occupied by these drugstore chains for the following reasons:
The drugstore business is very recession-insensitive. People need medicine while they are sick, whatever the state of the economy. Both rich and poor people in america get access to medicine. Some even argue that low-income people use more medicine due to free or low-cost drugs available from government-assisted programs. And so the tenants ought to do well during difficult time and also have money to cover rent to landlords.
People are living longer and want more medicine to sustain longevity, e.g. Actonel for osteoporosis, Aricept for Alzheimer’s symptoms. The elderly often use more medicine than younger ones since they frequently have more medical conditions. As the 78 million baby boomers are receiving nearer to retiring age beginning from 2008, the drugstore chains anticipate the demand for medicine to increase in next two decades.
The drug market consistently expand because the US population is growing. A lot more Americans suffer from various diseases. The amount of Americans suffers from seasonal allergies doubled in the last 20 years to 37 million people per Fortune magazine. They spent $5.4 Billion during 2009 for allergy drugs. As their waist lines balloon (75% of Americans are forecasted to get either overweight or obese by 2020), more Americans are diagnosed with diabetes, along with high-cholesterol at younger and younger ages. Additionally, doctors also recommend treating various diseases sooner than later as a result of better understanding regarding the diseases. As an example, doctors now prescribe antiretroviral drugs for patients shortly after contaminated with HIV virus as opposed to waiting for the infection to jbbkwv AIDS. More doctors combine insulin with oral medicines to deal with type-2 Diabetes rather than oral medicines alone. All of these factors increase how big the drug market.
· Advance in genetic engineering has introduced various new genetic DNA testing kits that allow the genetic proper diagnosis of vulnerabilities to inherited diseases and disorders. Genetic tests are currently the highest growth segment in the diagnostics industry. Many of these genetic tests will most likely transform into direct-to-consumer testing kits offered in drug stores soon.Upon FDA approval, these new items will potentially generate additional revenue for pharmacies.