Pharmacy margins

by a searcher from University of San Francisco - School of Management

1 year ago

I'm doing some industry research on the pharmacy industry. I noticed a lot of the clinics will have BIG revenue, 20-30 m, but comparably small EBITDA. Are margins pretty much tight across the board? Wanted some insight from people who're more experienced than I. Thanks.

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searcher from University of Wisconsin-Madison - Wisconsin School of Business

Pharmacy is a very tough market in the United States due to intense consolidation and price competition from large players like Walgreens, CVS, etc. Margins are low and continue to decline. I would not go into a typical brick and mortar pharmacy. If you are interested in the pharmacy market, I would look for a niche where you can provide more value-add. For instance, technology, LTC pharmacies, medication therapy management, etc.

1 year ago | like reply | 1 like

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