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Trade Relations
Market Trends...
  • Wholesalers, distributors, medical suppliers developing sector-specific marketing strategy in oncology, dialysis, specialty pharmacy, surgical centers; building up IT / IoT / IoHT inventory management, financial reporting resources
  • Significant drastic change with potential threat posed by Amazon as it prepares to ramp up its healthcare marketing initiatives and conceivably enter the healthcare wholesaler, distributor, medical supplier sectors

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Early in March '16, McKesson acquired Rexall from Katz Group for $2.2 billion dollars. There are about 470 Rexall units in Canada with the highest concentration in the western region. Rexall is the second largest retail pharmacy in Canada.

McKesson continues to expand and widen its business model. In February '16, they acquired Vantage Oncology and Biologics in two deals totaling $1.2 billion. Vantage was a leading national provider of radiation oncology, medical oncology and other integrated cancer care. Biologics was the leading independent oncology-focused specialty pharmacy in the United States. McKesson's reach into the specialty pharmacy and oncology market enables it to interface directly with patients, providers and payers.

AmerisourceBergen's acquisition of pharmacy compounder PharMEDium in 2015 provided them with a high margin business which they will use to augment their pharmacy services as they ramp up moving forward.  This strategy may be confronted with new regulatory issues / restrictions over the course of 2018 and beyond.  A number of State and Federal regulatory agencies have expressed concern about and seek clarification on the status of compounding pharmacies as being manufacturers of product versus pharmacy providers.  Much of this stems from the New England Compounding Center's (NECC) safety violations which produced defective product that caused deaths and hospitalizations for patients who contracted meningitis from their use.  NECC was affiliated with a larger compounding pharmacy entity, Ameridose.  Both commercial enterprises have ceased to operate.  As new potential regulations and commercial categorizations are laid out, AmerisourceBergen will have to account for their impact on PharMEDium. 

Amazon has earnest business initiatives underway in the healthcare sector. Their product selection is growing in variety and in sophistication. They have the ability to compete with traditional GPOs, healthcare distributors, wholesalers, suppliers and retailers for consumer, patient and healthcare provider organization customer sector business.

On 10/24/13, McKesson, the largest U.S. pharmaceutical distributor - wholesaler, announced it was acquiring Celesio AG (a large, Stuttgart, Germany-based drug distributor) for about $5.4 billion dollars. Celesio operates 132 facilities which provide drugs and other healthcare products to hospitals and pharmacies in 14 European nations and other select locales.  The deal will provide McKesson with deeper reach into global markets and greater leverage in negotiating with generic pharmaceutical manufacturers and other makers of healthcare products.   

Globalization of healthcare supply chains is an important industry trend to reinforce buying power and logistical efficiencies. Walgreens/Boots is well underway in its efforts to integrate itself plus complete its acquisition of Rite Aid.  The growing organization will be supported by its respectable 23% stake in the global healthcare distributor/wholesaler AmerisourceBergen.



Amazon has earnest business initiatives underway in the healthcare sector.  Their product selection is growing in variety and in sophistication.  They have the ability to compete with traditional GPOs, healthcare distributors, wholesalers, suppliers and retailers for consumer, patient and healthcare provider organization customer sector business.

... Learn more about Amazon's new healthcare business initiatives, read the articles below ...
... This is a list of Drug Wholesalers, Distributors and Medical Suppliers; scroll down for presentations and market trends in Trade Relations ...
<img src="86806746.jpg" alt="director of trade relations in a meeting with pharmaceutical manufacturers">
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