It is well known that there are many industries in the United States of America right now have an intense labor shortage. Even worse in most of these industries you can find not enough kids in school going after the right college degrees to be able to work in these industries. Even worse additionally is the fact that over regulation in numerous industries is bringing about ongoing education requirements and making it tougher for individuals to maintain licenses to even work in the business.
One industry which is within a huge labor shortage will be the pharmacy business. Companies like Rite Aid and Eckerd Drugs possess a really tough time securing people to work behind the counters inside the pharmacy. Given that what time does Rite Aid Pharmacy close have merged this may help the labor shortage temporarily, however meanwhile Wal-Mart has entered the market in a big way. This implies the labor shortage will likely continue.
Now you ask ,; are there way too many drugs on the marketplace for the pharmacy professionals to remain up on all the information or are definitely the requirements now to get into the business too tough and college students are shying away from that profession? We must have more pharmacy professionals so we need them yesterday. As the quantity of people and ratio of “old to young” inside our nation climbs we will also view the labor shortages become a little more critical.
The Merger Between Eckerd Drug and Rite Aid may have helped a little however, not much since very few stores will likely be actually closing unless these were down the street from each other and that we know Wal-Mart is going to be getting the slack if any customers end up switching and they can be on the market for 1,000s of the latest pharmacists too.
Rite Aid ranks third (fourth, behind Walmart when it comes to prescription revenues) with market cap of $1.49 Billion, $26.1 Billion in revenue ($17.1B from prescription revenues), operates 4714 drug stores since February 2011 and has an S&P rating of B-.
Investors purchase properties occupied by these drugstore chains for your following reasons:
The drugstore organization is very recession-insensitive. People need medicine while they are sick, whatever the state of the economy. Both rich and poor people in the united states get access to medicine. Some even argue that low-income people use more medicine because of free or low-cost drugs available from government-assisted programs. Therefore the tenants ought to do well during difficult time and have money to cover rent to landlords.
Folks are living longer and want more medicine to sustain longevity, e.g. Actonel for osteoporosis, Aricept for Alzheimer’s symptoms. Seniors tend to use more medicine than younger ones because they often have more medical conditions. Because the 78 million baby boomers are getting closer to retiring age starting from 2008, the drugstore chains anticipate the need for medicine to improve in next 20 years.
The drug market will continue to expand since the US population continues to grow. A lot more Americans have problems with various diseases. The amount of Americans suffers from seasonal allergies doubled in the last 15 years to 37 million people per Fortune magazine. They spent $5.4 Billion in 2009 for allergy drugs. As his or her waist lines balloon (75% of Americans are forecasted to get either overweight or obese by 2020), more Americans are identified as having diabetes, along with high cholesterol levels at younger and younger ages. Furthermore, doctors also recommend treating various diseases sooner than later because of better understanding concerning the diseases. As an example, doctors now prescribe antiretroviral drugs for patients shortly after contaminated with HIV virus instead of waiting for the infection to jbbkwv AIDS. More doctors combine insulin with oral medicines to treat type-2 Diabetes instead of just oral medicines alone. Each one of these factors increase how big the drug market.
· Advance in genetic engineering has introduced various new genetic DNA testing kits that allow the genetic diagnosing vulnerabilities to inherited diseases and disorders. Genetic testing is typically the highest growth segment in the diagnostics industry. Some of these genetic tests will probably transform into direct-to-consumer testing kits obtainable in drug stores soon.Upon FDA approval, these new items will potentially bring in additional revenue for pharmacies.