Health Care Distribution and Service Companies: Reflections on a Changing Business Model

Topics:
Pharmeceuticals
Tags:
Business Model,
Quality,
Price Increase,
Pharmaceutical Company,
Management,
JIT,
Health Care,
Fitch,
Business Operations,
Strategy
Source:
Fitch

Vendor Registration: required

Overview: The pharmaceutical distribution sector is undergoing a change in the very structure of its core business model, shifting from a traditional "buy-and-hold" model to a fee-for-service model that is more akin to just-in-time inventory. Under the current traditional business model, distributors, to varying degrees, make a portion of their margin through bulk buying ahead of price increases. This is possible because one of the unique characteristics of the pharmaceutical industry is that, due to routine price increases, inventories appreciate rather than depreciate.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: PDF | Size: 186KB | Date: May 2004 | Pages: 9

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