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 in order to work in these industries. Even worse in addition to that is the fact that over regulation in numerous industries causes ongoing education requirements and making it tougher for people to maintain licenses to even work in the business.
One industry which is within huge labor shortage will be the pharmacy business. Companies 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 Hours have merged this could help the labor shortage temporarily, however meanwhile Wal-Mart has entered the marketplace in a big way. What this means is the labor shortage will most likely continue.
Now you ask; exist too many drugs on the marketplace for the pharmacy professionals to remain high on every piece of information or are definitely the requirements now to gain access to the business too tough and university students are shying away from that career path? We require more pharmacy professionals and 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 become more critical.
The Merger Between Eckerd Drug and Rite Aid could have helped a bit however, not much since only a few stores will be actually closing unless they were across the street from each other so we know Wal-Mart will be obtaining the slack if any customers wind up switching and they can be on the marketplace for 1,000s of the latest pharmacists too.
Rite Aid ranks third (fourth, behind Walmart in terms of prescription revenues) with market cap of $1.49 Billion, $26.1 Billion in revenue ($17.1B from prescription revenues), operates 4714 pharmacies since February 2011 and has an S&P rating of B-.
Investors purchase properties occupied by these drugstore chains for the following reasons:
The drugstore company is very recession-insensitive. Young people need medicine if they are sick, no matter the state from the economy. Both rich and poor people in the united states gain access to medicine. Some even reason that low-income people use more medicine due to free or low-cost drugs available from government-assisted programs. And so the tenants should do well during hard time and also have money to cover rent to landlords.
Individuals are living longer and want more medicine to sustain longevity, e.g. Actonel for osteoporosis, Aricept for Alzheimer’s symptoms. The elderly have a tendency to use more medicine than younger ones as they usually have more medical problems. Because the 78 million baby boomers are getting even closer to retiring age beginning with 2008, the drugstore chains anticipate the need for medicine to improve in next 20 years.
The drug market consistently expand since the US population keeps growing. A lot more Americans suffer from various diseases. The number of Americans suffers from seasonal allergies doubled during the last 15 years to 37 million people per Fortune magazine. They spent $5.4 Billion during 2009 for allergy drugs. As their waist lines balloon (75% of Americans are forecasted to be either overweight or obese by 2020), more Americans are identified as having diabetes, along with high cholesterol levels at younger and younger ages. In addition, doctors also recommend treating various diseases sooner than later due to better understanding regarding the diseases. For instance, doctors now prescribe antiretroviral drugs for patients soon after infected with HIV virus instead of waiting for the problem to jbbkwv AIDS. More doctors combine insulin with oral medicines to treat type-2 Diabetes instead of just oral medicines alone. All these factors increase how big the drug market.
· Advance in genetic engineering has introduced various new genetic DNA testing kits that allow the genetic diagnosis of vulnerabilities to inherited diseases and disorders. Genetic tests are typically the highest growth segment inside the diagnostics industry. Some of these genetic tests will most likely transform into direct-to-consumer testing kits available in drug stores soon.Upon FDA approval, these new items will potentially bring in additional revenue for drug stores.