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 many of these industries there are not enough kids in school going after the proper college degrees to be able to work in these industries. Even worse on top of that is the fact that over regulation in numerous industries is bringing about ongoing education requirements and making it tougher for folks to maintain licenses to even work in the market.
One industry that is under a huge labor shortage will be the pharmacy business. Brands like Rite Aid and Eckerd Drugs use a really hard time securing people to work behind the counters within the pharmacy. Given that storeholidayhours.org have merged this might help the labor shortage temporarily, however meanwhile Wal-Mart has entered the market in a big way. This means the labor shortage will likely continue.
Now you ask ,; are available a lot of drugs on the industry for the pharmacy professionals to keep on all the details or are the requirements now to get involved with the market too tough and college students are shying away from that profession? We need more pharmacy professionals and that we need them yesterday. As the amount of people and ratio of “old to young” inside our nation climbs we shall also begin to see the labor shortages become a little more critical.
The Merger Between Eckerd Drug and Rite Aid could have helped a bit but not much since only a few stores will be actually closing unless these people were across the street from one another and we know Wal-Mart is going to be getting the slack if any customers wind up switching and they will 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 as of February 2011 and contains 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. People need medicine when they are sick, regardless of the state of the economy. Both rich and poor people in the US gain access to medicine. Some even reason that low-income people use more medicine as a result of free or low-cost drugs provided by government-assisted programs. Therefore the tenants must do well during tough time and also have money to pay for rent to landlords.
People are living longer and want more medicine to sustain longevity, e.g. Actonel for osteoporosis, Aricept for Alzheimer’s symptoms. The elderly often use more medicine than younger ones because they frequently have more medical conditions. As the 78 million baby boomers are receiving nearer to retiring age beginning with 2008, the drugstore chains anticipate the interest in medicine to improve in next two decades.
The drug market consistently expand since the US population continues to grow. A lot more Americans suffer from various diseases. The amount of Americans is suffering from seasonal allergies doubled in the last 15 years to 37 million people per Fortune magazine. They spent $5.4 Billion during 2009 for allergy drugs. His or her waist lines balloon (75% of Americans are forecasted to get either overweight or obese by 2020), more Americans are clinically determined to have diabetes, together with high-cholesterol at younger and younger ages. Additionally, doctors also recommend treating various diseases earlier than later as a result of better understanding regarding the diseases. For example, doctors now prescribe antiretroviral drugs for patients shortly after infected with HIV virus as opposed to waiting 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. All of these factors increase the dimensions of the drug market.
· Advance in genetic engineering has introduced various new genetic DNA testing kits which allow 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 likely transform into direct-to-consumer testing kits available in pharmacies in the future.Upon FDA approval, these new items will potentially generate additional revenue for pharmacies.