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 many of these industries you will find not enough kids in school going after the correct 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 individuals to maintain licenses to even work in the business.
One industry that is certainly within huge labor shortage will be the pharmacy business. Businesses like Rite Aid and Eckerd Drugs have a really tough time securing people to work behind the counters within the pharmacy. Given that what time does Rite Aid Pharmacy close have merged this might assist the labor shortage temporarily, however meanwhile Wal-Mart has entered the current market in a big way. What this means is the labor shortage will in all probability continue.
The question is; are there way too many drugs on the market for the pharmacy professionals to remain high on all the information or are the requirements now to get involved with the business too tough and college students are shying far from that career path? We need more pharmacy professionals and we need them yesterday. As the quantity of people and ratio of “old to young” in our nation climbs we will also view the labor shortages be a little more critical.
The Merger Between Eckerd Drug and Rite Aid might have helped a bit but not much since only a few stores will be actually closing unless these people were across the street from the other person and that we know Wal-Mart is going to be getting the slack if any customers find yourself switching and they will 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 since February 2011 and has an S&P rating of B-.
Investors purchase properties occupied by these drugstore chains for that following reasons:
The drugstore organization is very recession-insensitive. People need medicine when they are sick, regardless of the state from the economy. Both rich and poor people in the united states gain access to medicine. Some even debate that low-income people use more medicine as a result of free or low-cost drugs offered by government-assisted programs. So the tenants should do well during difficult time and have money to cover rent to landlords.
People are living longer and need more medicine to sustain longevity, e.g. Actonel for osteoporosis, Aricept for Alzheimer’s symptoms. Seniors tend to use more medicine than younger ones since they often have more medical conditions. Since the 78 million baby boomers are receiving even closer to retiring age beginning with 2008, the drugstore chains anticipate the need for medicine to boost in next two decades.
The drug market consistently expand since the US population continues to grow. More and more Americans suffer from various diseases. The number of Americans is affected with seasonal allergies doubled within the last 20 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 diagnosed with diabetes, together with high cholesterol at younger and younger ages. Additionally, doctors also recommend treating various diseases sooner than later due to better understanding concerning the diseases. For example, doctors now prescribe antiretroviral drugs for patients soon after infected with HIV virus rather than awaiting the infection to jbbkwv AIDS. More doctors combine insulin with oral medicines to treat type-2 Diabetes rather than oral medicines alone. Each one of these factors increase how big the drug market.
· Advance in genetic engineering has introduced various new genetic DNA testing kits which permit the genetic diagnosis of vulnerabilities to inherited diseases and disorders. Genetic tests are currently the highest growth segment in the diagnostics industry. A few of these genetic tests will most likely transform into direct-to-consumer testing kits available in drug stores in the future.Upon FDA approval, these new products will potentially bring in additional revenue for drug stores.