Pharmacy Benefit Management Services Market - Global Industry Analysis, Size, Share, Trends, Analysis, Growth, and Forecast 2017 - 2025

  • Single User License $3500

Pharmacy Benefit Management Services Market - Global Industry Analysis, Size, Share, Trends, Analysis, Growth, and Forecast 2017 - 2025

Status : September, 2021 | Pharmaceutical

Report Digest


Global Pharmacy Benefit Management Services Market: Snapshot

Serving as a middleman between drug manufacturers, pharmacies, and healthcare insurance companies, vendors operating in the global pharmacy benefit management services market could be advantaged by the rising costs of several drugs. Insurance companies and insurers are expected to heavily rely on pharmacy benefit management services to lower drug costs. Moreover, pharmacy benefit management services are considered as key players in the overall healthcare space, which could raise their value even more.

Vendors are recommended to cash in on the various revenue streams available to make profit in the global pharmacy benefit management services market. These could be service fees for operating mail-order pharmacies, processing prescriptions, and negotiating with drug manufacturers, insurance companies, and pharmacies. The negotiation power could be strengthened by establishing contracts with some of the largest insurance companies in healthcare. As a result, new contracts are anticipated to bolster the growth of pharmacy benefit management services with up to a double-digit boost to stock price.

As more number of pharmacy benefit management services enter into contracts with insurers, the competition in the global market is prognosticated to aggravate further. Since consolidation allows participants to fortify their negotiation power and increase in size, there could be a telling number of mergers and acquisitions in the global pharmacy benefit management services market. Owing to inherent synergies between them, pharmacy benefit management services and pharmacies could also enter into consolidation. Pharmacy benefit management services are prophesied to create a network of retail pharmacies for distributing drugs by negotiating contracts with different pharmacies.

Pharmacy Benefit Management Services Market: Brief Account

Pharmacy benefit management services play an integral role in the healthcare industry, with its unique function of administrating pharmacy products, and focusing on real time interaction between various entities. The key trends of this process are governed by laws and regulations. The various functions of pharmacy benefit management services are: process and payment of prescription drugs, development and maintenance of formulary, negotiation of discounts, contracting with pharmacies, and rebates with drug manufacturers. These services are provided with the help of different tools that help to target specific problems for intervention, and most of the times are customized on the basis of client’s requirement.

The different tools that are used in pharmacy benefit management services are: pharmacy networks, mail service pharmacies, formularies, electronic prescribing, manufacturer discounts, clinical management, and pharmacy discount cards. The factors driving the pharmacy benefit management services market are Medicare’s emerging models of care integrate pharmacy, and execution and escalation of drug benefit programs. Although high upfront cost and low awareness related to the system is restraining the growth of the pharmacy benefit management services market.

Pharmacy Benefit Management Services Market: Segment Analysis

The most integral and highly preferred applications of pharmacy benefit management services are member’s administration, formulary management, E-prescribing, and E-dispensing, accompanied with processing of claims. Thus, formulary management lists approved prescription medications that abide to specific protocols, and are arranged on the basis of served programs. E-prescribing and E-dispensing are highly important elements of pharmacy benefit management program, as most of the misplacements and drug abuse cases are a result of error in prescriptions and dispensing.

Pharmacy Benefit Management Services Market: Regional Overview

Geographically, North America is the largest market for pharmacy benefit management due to the availability of modern healthcare information technologies, government support, and efficient infrastructure. The high awareness about wellbeing, health, and high expenditure capacity of patients, would indirectly act as a driving factor for the growth of pharmacy benefit management services in the European and North American market.

One of the industry trends observed was the proliferation of healthcare facilities and institutes from Asia Pacific region, catering to clinics and institutions, particularly large hospitals. The increasing density of population in Asia demands well integrated, time-efficient, and accurate drug dispensing services, majorly focused in China, India, Japan, and South Korea. Hence, emerging economies such as China and India are the key regional markets in the overall Asia Pacific market.

The Rest of the World is also observed to be another potential market during the forecast period from 2014 to 2020. The potential economies such as South Africa, Argentina, Brazil and Middle-Eastern Countries, were observed to be the emerging untapped markets for the application of this technology.

Pharmacy Benefit Management Services Market: Key Players

The companies operating in the pharmacy benefit management services market are: Express Script, Cigna, CVS Health, and Catamaran among others.

CVS health is the only pharmacy chain with its own services arm and owned 30% share in the managed medicaid market in the year 2014, with an estimated growth of 40% through 2016. The applications of pharmacy benefit management services are expected to be the leading driving factor for overall development and rising market share of CVS Health in the U.S.

The reports at TMR Research provide qualitative solutions that break the barriers of doubt or uncertainties when the stakeholders plan to expand their growth reach. The researchers compile the necessary information that enlightens the CXOs about the current growth opportunities in a specific market and enables them to make the most of the opportunities.

TMR Research is a leader in developing well-researched reports. The expertise of the researchers at TMR Research makes the report stand out from others. TMR Research reports help the stakeholders and CXOs make impactful decisions through a unique blend of innovation and analytical thinking. The use of innovation and analytical thinking while structuring a report assures complete and ideal information of the current status of the market to the stakeholders.

TMR Research has rich experience in developing state-of-the-art reports for a wide array of markets and sectors. The brilliance of the experts at TMR Research and their alacrity to conduct thorough research and create phenomenal reports makes TMR Research better than others.

5-Point Growth Formula

The 5-point growth formula developed by TMR Research provides an insight to the stakeholders and CXOs about the current situation in the market. The growth formula makes the report a perfect companion for the stakeholders and CXOs.

The 5-point growth formula includes the following points:

  • Current and Future Threats
  • Accurate Trend Analysis
  • Regional Assessment
  • Industrial Analogy
  • COVID-19 Impact

Current and Future Threats

Along with studying the opportunities necessary for growth, threats are also an important aspect to look upon for the companies and stakeholders in a specific sector. TMR Research studies every negative aspect that will hinder the growth of a specific area of business and includes it in the report. The stakeholders and CXOs will have the benefit of assessing the threat and take the necessary steps to prevent the hindrance caused due to the threats.

Accurate Trend Analysis

Keeping up with the latest trends is crucial in any business or sector. While stakeholders are aware of the trends that are on the surface, TMR Researchers find trends that are deeply entrenched in the particular market or sector. The reports are constantly updated with the latest trends so that the stakeholders and CXOs can derive benefits from the trends and generate good revenues.

Regional Assessment

Demography forms an important part of the growth pattern of all the markets. Diving deep into the demographics enables maximum output from specific areas. The TMR Research team assesses every region and picks out the vital points that have a large impact on the growth of a market.

Industrial Analogy

The analysts at TMR Research conduct an all-round analysis on the competitive landscape of the market. The observations recorded by the analysts are added to the reports so that every stakeholder gets a glimpse of the competitive scenario and frame their business plans according to the situation.

COVID-19 Impact

The COVID-19 outbreak has changed the growth projections of numerous sectors and businesses. The analysts at TMR Research have conducted a conscientious survey on the markets after the pandemic struck. The analysts have put forth their brilliant and well-researched opinions in the report. The opinions will help the stakeholders to plan their strategy accordingly.

The reports offer answers to the top 7 questions that revolve around the growth of the market

  • What are the diverse growth parameters influencing the market?
  • Which regions will contribute largely to the growth of the market
  • What are the recent innovations and technological advancements in the market?
  • What are the emerging trends across the market?
  • How has COVID-19 affected the market?
  • What will be the post-pandemic scenario of the market?
  • What are the major threats that will dent the growth prospects of the market?