Specialty pharmacy is on the rise, according to a new report from Delta Marketing Dynamics (DMD) Healthcare Research, a market research firm focused on creating a comprehensive understanding of the pharmacy channel.
The Evolving World of Specialty Pharmacy Providers: Past, Present, and Future estimates specialty drugs will account for about 9.1 percent of the nation’s total health care spending by 2020. Specialty drugs also account for about 40 percent of medications in development, according to the report, and specialty medications make up at least 60 percent of drugs slated for approval for marketing in the U.S. soon.
With all this projected growth in spending and in the number of specialty drugs available, now is the time to consider getting into specialty pharmacy if you’re not already.
If you’re worried specialty is a fad that won’t last, here are several factors contributing to the long-term growth of specialty pharmacy.
1. Expanding legislation
Legislation and political pressure have turned specialty pharmacy into a booming business.
From 1973 to 1983 only 10 new specialty drugs made it to the market, but in 1983, the Orphan Drug Act became law and spurred the growth of specialty development. Between 1983 and 2013, more than 400 new drugs and biological products made it to market, and many are expensive specialty drugs that treat rare diseases, according to the report.
The report also cites the Affordable Care Act as a source of a larger patient base. The legislation ensures that patients with pre-existing conditions can’t be denied coverage from health plans, or have their plan membership canceled due to high-cost conditions that often require specialty medications.
These pieces of legislation expanded the number of specialty drugs available and the number of patients with access to health insurance.
2. Manufacturer economic incentives
Due to patent expirations, the report notes that drug manufacturers have shifted their attention away from developing mega blockbuster drugs and are instead focusing on niche drugs serving smaller groups, including oncology treatments and antivirals.
Larger drug companies are acquiring companies with promising drugs in Phase II or Phase III trials in hope of replacing their former blockbuster drugs with new, specialty drugs. According to the report, these buyouts continue to spur the research and development of specialty drugs, which means more specialty drugs will be developed.
3. Aging Americans
The largest generation of Americans is aging, and living longer. According to the report, aging Americans are in need of different types of specialty drugs and more specialty drugs.
As the use of specialty drugs among older patients grows, so will the need for specialty pharmacy providers. These patients and their caregivers will require education, and help managing their complex medication regimens. Independent community pharmacies are uniquely suited to provide this counseling and medication management, according to the report.
4. Growing technology
New health information technology is helping develop the specialty pharmacy market, according to the report.
Technology is helping to reduce and prevent medication errors, it’s helping monitor and manage patient care, and it’s increasing efficiency, which ultimately lowers health care costs, according to the report.
New tech tools also help patients and pharmacists monitor specialty medication and patient outcomes. The report projects that this data can confirm the value of specialty treatments, which could spur industry growth.
If you’re ready to start offering specialty medication and services at your pharmacy, learn how to establish a successful specialty program.
