Pharmacies are in the middle of a big restructuring, and one of the biggest challenges for them is figuring out how to make their business sustainable, according to a new report.
The move is an attempt to attract new customers and keep them around for as long as possible.
The report, Pharmacy and Drug Costs, released by consulting firm Aon Hewitt and Aon Group, says pharma is losing $2.1 billion a day, and that’s just the cost of the pharmacy itself.
The other major part of the bill is for the other people who fill prescriptions, which has been shrinking in recent years.
“Pharmacy and drug costs have gone up as a share of the overall economy since 2006,” the report says.
The pharma sector also has seen its stock price plummet.
The Nasdaq index fell as much as 4.4% in midday trading Monday, while the S&P 500 index was down 1.7%.
Many companies have slashed their spending on research and development.
The big pharma companies that make most of their revenue from prescription drugs are Pfizer, Bristol-Myers Squibb, Merck, Bristol Myers Squibben, Bristol Laboratories, Bristol Bay Biotech, and Pfizer Consumer Healthcare, according the report.
“Pfizer has been one of our biggest customers over the last several years, and the fact that it is closing its facilities in the United States is a great example of how we are going to be impacted,” said Paul Hirschberg, president of the American Society of Health Economics.
“The costs to the industry are going up and the cost to consumers are going down, so it’s a real challenge.”
There are many factors behind the industry’s struggles, including the decline in the cost per prescription, the aging of the population, the rise of specialty pharmacies and an increasing reliance on electronic health records.
The pharmacy industry is expected to be a $4 trillion industry by 2020, according Aon.
It’s also going to grow rapidly, and there are plans to spend nearly $4 billion a month on marketing and operations in 2020.
There are other challenges as well, such as rising costs related to employee compensation and pension contributions, according a report by consulting company PricewaterhouseCoopers.
The Pharmacy Tax Act of 1986, which created the Medicare program that pays for prescription drugs, requires companies to keep their prices in line with inflation and keep a close eye on costs.
That has led to a lot of consolidation in the industry.
According to Aon, the pharmacy industry has seen a lot more consolidation than the rest of the economy over the past decade, especially in the specialty pharmacy business.
The specialty pharmacy sector is growing at a faster rate than the pharmacy, with some major pharmacy chains such as Rite Aid, CVS Health, and Walgreens having announced or are planning to do deals to consolidate.
This means that when the industry has to make cuts, the biggest cost will likely be on the consumers.
The cost of prescription drugs has also increased, but the growth rate has slowed in recent quarters.
Aon said the pharmacist industry is already facing a major challenge as prescription spending slows.
The group says that as more people get their prescription drugs from their own physicians, the cost is going up for everyone.
“If you’re a person who has to take the medication, it will cost more,” Hirschburg said.
“It will probably take longer to pay back your loan.
It will take longer for the bank to get paid.”
This article was originally published by The New York Times.