Drug Wholesalers Industry Profile

Report Page Length: 10-12
Last Quarterly Update: 5/13/2024
SIC Codes: 5122
NAICS Codes: 424210
Chapters Include:
Industry Overview Trends & Challenges Industry Forecast
Quarterly Industry Update Call Prep Questions Website & Media Links
Business Challenges Financial Information Glossary & Acronyms
View Full Sample Add To Cart

Excerpt from Drug Wholesalers Industry Profile

Companies in this industry serve as wholesale distributors of prescription drugs, over-the-counter medicines, and related products. Major companies include Cardinal Health, Cencora, and McKesson (all based in the US), as well as Jointown Pharmaceutical (China), Medipal (Japan) and PHOENIX (Germany).

Aging populations worldwide drive demand for wholesale drug distribution. In addition, countries such as Brazil, Canada, Mexico, and the US will likely lead to expansion of the industry, according to Atradius.

The US drug wholesalers industry includes about 10,300 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $930 billion. The industry includes manufacturers' distribution units.


Demand for pharmaceutical distribution is driven by the need to treat illness and disease. The profitability of individual companies is determined by the efficient distribution of a wide variety of drugs and medications. Large companies compete intensely on price, size of generic drug portfolio, product volume and variety, and the quality of value-added support services such as supply chain management. Small companies can compete by focusing on rural areas, independent community pharmacies, or the distribution of drugs that have special handling requirements. The industry is highly concentrated: the 50 largest firms generate about 90% of revenue.


Major products include specialty pharmaceuticals, which account for 30% of the industry revenue, followed by vaccines at 10%. Other products include diagnostic reagents and in-vivo and in-vitro products (10%); patent medicines (10%); and ...

View Full Sample Add To Cart Return to the Industry Profile Menu

Would you or your company benefit from having unlimited access to First Research's industry intelligence tools?

Learn More About Subscription Options