It is common knowledge that there are many industries in the United States of America today have an intense labor shortage. A whole lot worse in a number of these industries you can find not enough kids in school going after the proper college degrees to be able to work in these industries. Even worse additionally is the fact that over regulation in numerous industries causes ongoing education requirements and making it tougher for individuals to maintain licenses to even work in the industry.
One industry which is within huge labor shortage is definitely the pharmacy business. Businesses like Rite Aid and Eckerd Drugs possess a really hard time securing men and women to work behind the counters within the pharmacy. Since Rite Aid Pharmacy closing times have merged this could help the labor shortage temporarily, however meanwhile Wal-Mart has entered the current market in a big way. This means the labor shortage will in all probability continue.
Now you ask; are available too many drugs on the marketplace for the pharmacy professionals to stay on every piece of information or are definitely the requirements now to get into the business too tough and students are shying away from that profession? We must have more pharmacy professionals and we need them yesterday. As the quantity of people and ratio of “old to young” inside our nation climbs we are going to also view the labor shortages become more critical.
The Merger Between Eckerd Drug and Rite Aid could have helped a little however, not much since only a few stores is going to be actually closing unless they were down the street from one another and we know Wal-Mart will likely be obtaining the slack if any customers find yourself switching and they can be on the industry for 1,000s of brand new 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 drug stores at the time of February 2011 and contains an S&P rating of B-.
Investors purchase properties occupied by these drugstore chains for your following reasons:
The drugstore business is very recession-insensitive. Individuals need medicine while they are sick, no matter the state of the economy. Both rich and poor people in america get access to medicine. Some even reason that low-income people use more medicine due to free or low-cost drugs offered by government-assisted programs. So the tenants should do well during tough time and possess money to pay rent to landlords.
Folks are living longer and need more medicine to sustain longevity, e.g. Actonel for osteoporosis, Aricept for Alzheimer’s symptoms. Seniors often use more medicine than younger ones as they frequently have more medical conditions. Since the 78 million baby boomers are becoming even closer to retiring age beginning with 2008, the drugstore chains anticipate the need for medicine to increase in next 20 years.
The drug market continues to expand because the US population continues to grow. A lot more Americans suffer from various diseases. The number of Americans suffers from seasonal allergies doubled during the last 20 years to 37 million people per Fortune magazine. They spent $5.4 Billion in 2009 for allergy drugs. As their waist lines balloon (75% of Americans are forecasted to get either overweight or obese by 2020), more Americans are diagnosed with diabetes, along with high cholesterol at younger and younger ages. Furthermore, doctors also recommend treating various diseases sooner than later due to better understanding regarding the diseases. For example, doctors now prescribe antiretroviral drugs for patients right after infected with HIV virus instead of waiting around for the infection to jbbkwv AIDS. More doctors combine insulin with oral medicines to take care of type-2 Diabetes rather than just oral medicines alone. Each one of 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. Some of these genetic tests will probably transform into direct-to-consumer testing kits available in drug stores in the near future.Upon FDA approval, these new releases will potentially bring in additional revenue for drug stores.