It is common knowledge that there are many industries in the United States of America right now have an intense labor shortage. A whole lot worse in a number of these industries there are not enough kids in school going after the correct college degrees in order to work in these industries. Even worse additionally is the fact that over regulation in many industries is bringing about ongoing education requirements and making it tougher for individuals to maintain licenses to even work in the industry.
One industry that is within huge labor shortage is the pharmacy business. Companies like Rite Aid and Eckerd Drugs use a really tough time securing men and women to work behind the counters in the pharmacy. Since Rite Aid Pharmacy hours have merged this could assist the labor shortage temporarily, however meanwhile Wal-Mart has entered the market in a big way. This implies the labor shortage will in all probability continue.
The question is; are there a lot of drugs on the market for the pharmacy professionals to remain high on every piece of information or would be the requirements now to gain access to the business too tough and university students are shying away from that occupation? We must have more pharmacy professionals so we need them yesterday. As the number of people and ratio of “old to young” inside our nation climbs we are going to also see the labor shortages become more critical.
The Merger Between Eckerd Drug and Rite Aid could have helped a little however, not much since only a few stores is going to be actually closing unless these people were down the street from each other and we know Wal-Mart is going to be picking up the slack if any customers end up switching and they can be on the industry for 1,000s of brand new 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 as of February 2011 and it has an S&P rating of B-.
Investors purchase properties occupied by these drugstore chains for the following reasons:
The drugstore business is very recession-insensitive. People need medicine when they are sick, no matter the state in 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 due to free or low-cost drugs offered by government-assisted programs. Therefore the tenants should do well during tough time and possess money to cover rent to landlords.
Individuals are living longer and require 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 since they often 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 increase in next two decades.
The drug market continues to expand as the US population is growing. More and more Americans suffer from various diseases. The amount of Americans is suffering from seasonal allergies doubled during the last fifteen years to 37 million people per Fortune magazine. They spent $5.4 Billion in 2009 for allergy drugs. As their waist lines balloon (75% of Americans are forecasted to become either overweight or obese by 2020), more Americans are clinically determined to have diabetes, along with high-cholesterol at younger and younger ages. Furthermore, doctors also recommend treating various diseases sooner than later due to better understanding regarding the diseases. As an example, doctors now prescribe antiretroviral drugs for patients right after contaminated with HIV virus as opposed to waiting around for the problem to jbbkwv AIDS. More doctors combine insulin with oral medicines to deal with type-2 Diabetes instead of just oral medicines alone. All 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 diagnosing vulnerabilities to inherited diseases and disorders. Genetic tests are currently the highest growth segment within the diagnostics industry. Many of these genetic tests will most likely transform into direct-to-consumer testing kits available in pharmacies soon.Upon FDA approval, these new items will potentially bring in additional revenue for drug stores.