It is common knowledge 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 there are not enough kids in school going after the proper college degrees to be able to work in these industries. Even worse in addition to that is the fact that over regulation in lots of industries causes ongoing education requirements and making it tougher for folks to maintain licenses to even work in the business.
One industry that is within huge labor shortage is the pharmacy business. Brands like Rite Aid and Eckerd Drugs use a really difficult time securing people to work behind the counters in the pharmacy. Now that Rite Aid hours have merged this may help the labor shortage temporarily, however meanwhile Wal-Mart has entered the market in a big way. This means the labor shortage will in all probability continue.
Now you ask; are there way too many drugs on the market for the pharmacy professionals to remain on all the information or would be the requirements now to gain access to the industry too tough and university students are shying from that profession? We must have more pharmacy professionals so we need them yesterday. As the number of people and ratio of “old to young” within our nation climbs we shall also see the labor shortages be a little more critical.
The Merger Between Eckerd Drug and Rite Aid might have helped just a little however, not much since only a few stores will likely be actually closing unless these people were across the street from each other and that we know Wal-Mart is going to be getting the slack if any customers find yourself switching and they can be on the market for 1,000s of the latest pharmacists too.
Rite Aid ranks third (fourth, behind Walmart with regards to prescription revenues) with market cap of $1.49 Billion, $26.1 Billion in revenue ($17.1B from prescription revenues), operates 4714 pharmacies as of February 2011 and it has an S&P rating of B-.
Investors purchase properties occupied by these drugstore chains for the following reasons:
The drugstore business is very recession-insensitive. Young people need medicine when they are sick, no matter the state in the economy. Both rich and poor people in america have access to medicine. Some even debate that low-income people use more medicine because of free or low-cost drugs offered by government-assisted programs. So the tenants should do well during tough time and possess money to cover rent to landlords.
People 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. As the 78 million baby boomers are receiving closer to retiring age starting from 2008, the drugstore chains anticipate the interest in medicine to increase in next 20 years.
The drug market continues to expand because the US population keeps growing. More and more Americans are afflicted by various diseases. The amount of Americans suffers from seasonal allergies doubled in the last fifteen years to 37 million people per Fortune magazine. They spent $5.4 Billion during 2009 for allergy drugs. His or her waist lines balloon (75% of Americans are forecasted to get either overweight or obese by 2020), more Americans are clinically determined to have diabetes, in addition to high cholesterol at younger and younger ages. Additionally, doctors also recommend treating various diseases sooner than later due to better understanding about the diseases. For instance, doctors now prescribe antiretroviral drugs for patients soon after contaminated with HIV virus as opposed to waiting for the infection to jbbkwv AIDS. More doctors combine insulin with oral medicines to deal with type-2 Diabetes rather than just oral medicines alone. All these factors increase the size of the drug market.
· Advance in genetic engineering has introduced various new genetic DNA testing kits which permit the genetic proper diagnosis of vulnerabilities to inherited diseases and disorders. Genetic testing is typically the highest growth segment inside the diagnostics industry. A few of these genetic tests will most likely transform into direct-to-consumer testing kits obtainable in pharmacies in the future.Upon FDA approval, these new products will potentially bring in additional revenue for drug stores.