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Pharmaceuticals Wholesaling in Australia Industry Market Research Report Now Updated by IBISWorld
Date:8/4/2014

Melbourne, Australia (PRWEB) August 05, 2014

Operators in the Pharmaceuticals Wholesaling industry in Australia are an important interface between local and international pharmaceutical manufacturers and the nation's 5,300 community pharmacies. Pharmaceutical wholesalers are involved in the procurement, distribution and sale of a range of pharmaceutical and medicinal products. These products include prescription medicines, pharmacy-only medicines, over-the-counter (OTC) medicines and other healthcare products.

According to IBISWorld industry analyst Arna Richardson, “following relatively strong revenue growth in the early 2000s, growth rates began to falter in 2005-06.” This was in line with changes to the industry's operating environment and slower growth in the Pharmaceutical Benefits Scheme (PBS). The PBS is a government scheme for subsidising the cost of pharmaceuticals to the community. PBS reforms instituted over the five years through 2014-15 have presented the most fundamental changes to the scheme over its 60-year history. “Changes have included mandatory price cuts on many generic and off-patent drugs as part of the move towards mandatory price disclosure,” says Richardson. There has also been a change in the pricing mechanism (to weighted average disclosed prices) that determines wholesaler margins. The industry has also been influenced by changes to the Community Service Obligation (CSO). Negotiations for the terms of the next CSO for 2015 to 2020 are expected to commence later in 2014.

The industry exhibits a medium level of market share concentration. Major players include Sigma Pharmaceuticals Limited, Ebos Group Limited and Australian Pharmaceutical Indust
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