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HDA: Distributors deliver up to $78B in value to pharmaceutical industry

Since 2004, HDA has commissioned the report to chronicle the evolution of the sector as it prepares for the rapid transformation of healthcare in the U.S. 

WASHINGTON — Healthcare distributors play a vital role in improving patient access to medicines in the United States. As noted in the latest edition of the HDA Research Foundation’s The Role of Distributors in the US Healthcare Industry, core distribution services provide an estimated value of up to $78 billion to the pharmaceutical industry. Since 2004, HDA has commissioned the report to chronicle the evolution of the sector as it prepares for the rapid transformation of healthcare in the U.S. 

Notably, the report — based on stakeholder interviews and industry data, including the HDA Factbook — estimates that distributors manage over 135 million annual orders of medicines and supplies. Distributors also aggregate products from thousands of geographically dispersed manufacturers and provide daily shipments to more than 450,000 dispensers in all 50 states. 

“As the latest Role of Distributors illustrates, pharmaceutical distributors are key strategic partners to manufacturers and pharmacies, supporting product handling, inventory positioning, financial transactions and product integrity,” said Perry Fri, President, HDA Research Foundation. “But the industry's value goes far beyond its core function. Distributors’ investments in cold chain infrastructure and adaptation to how patients access medicines underscore their commitment to meeting the growing demands of specialty pharmaceuticals and next-generation therapies.”

In addition to providing an overview of the healthcare distribution ecosystem, the latest analysis explores the evolving role of distributors, as well as the trends impacting the future of the industry. Among the opportunities for the industry, healthcare distributors can harness emerging technologies, such as artificial intelligence, to further optimize supply chains and benefit patients nationwide. Further, distributors can continue to leverage their access to supply chain and market data to strengthen their role as trusted thought partners to manufacturers, providers and other stakeholders.

The Role of Distributors in the US Healthcare Industry was created in collaboration with Deloitte. To read the full report, click here.

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