Market Trends of Pharmacy Benefit Management Industry
The Specialty Pharmacy Segment is Expected to Witness Significant Growth During the Forecast Period
- Specialty pharmacies provide drugs to treat rare or complex medical conditions, such as multiple trauma, head injuries, severe burns, and others. They are designed to efficiently supply drugs with exceptional handling, storage, and distribution requirements with standardized processes. These medications are usually high-cost products used to treat complex diseases. The specialty pharmacy segment is expected to witness significant growth in the pharmacy benefit management market during the forecast period due to the growing demand for prescription drugs, the rising burden of chronic diseases, and the increasing company activities.
- The growing company's activities in developing specialty pharmacy software and solutions are expected to increase segment growth during the forecast period. For instance, in April 2022, Southern Scripts launched RxCompass, a novel solution aimed at aiding United States companies and their staff to tackle the escalating expenses of specialty medications. Southern Scripts crafted the inaugural member-focused pharmacy navigation tool, leveraging its PBM proficiency and extensive industry connections. This tool guides members through a tailored journey, helping them select the specialty drug management program that suits their distinct requirements and comes at the most cost-effective rate.
- Additionally, in March 2022, VPL launched TrajectRx, a specialty pharmacy software designed for pharmacists. TrajectRx streamlines the pharmacy-to-patient care journey, enhancing patient care continuity, ensuring compliance with payors and accrediting bodies, and facilitating secure, cost-effective medication delivery. Therefore, owing to the factors above, the market is anticipated to grow during the forecast period.
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North America is Expected to Have the Significant Market Share During the Forecast Period
- North America is anticipated to witness significant growth in the pharmacy benefit management market during the forecast period owing to the increasing number of medication errors, increasing adoption of pharmacy benefit management, and rising healthcare expenditure.
- According to an article published in Oxford University Press in July 2022, overall prescription drug spending in the United States was expected to increase from 4% in the previous year to 6% in 2022. Thus, the increased drug spending indicates the high demand for prescription drugs in the region, which is anticipated to propel the need for pharmacy management systems, bolstering market growth.
- The key factor driving the market growth is the growing inclination toward adopting PBM systems in the region. For instance, in May 2022, Senators Maria Cantwell (D-Wash.) and Chuck Grassley (D-Iowa) collaborated on the Pharmacy Benefit Manager Transparency Act 2022. This bill aims to lower prescription costs by granting the Federal Trade Commission and state attorneys general the authority to intervene against unfair and deceptive practices by PBMs.
- In July 2023, Express Scripts, Evernorth's pharmacy benefits management (PBM) arm, incorporated three new biosimilars into its National Preferred Formulary (NPF). These biosimilars boast competitive net costs compared to Humira and enhance patient access and choice. Therefore, the market is expected to grow during the forecast period due to factors such as the rising adoption of pharmacy benefit management systems and increasing company activities.
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