It is common knowledge that there are many industries in the United States of America right now have an intense labor shortage. Even worse in a number 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 is causing ongoing education requirements and making it tougher for people to maintain licenses to even work in the industry.
One industry that is within huge labor shortage will be the pharmacy business. Businesses like Rite Aid and Eckerd Drugs have a really difficult time securing men and women to work behind the counters inside the pharmacy. Now that Rite Aid Pharmacy business hours have merged this might help the labor shortage temporarily, however meanwhile Wal-Mart has entered the market in a big way. This implies the labor shortage will most likely continue.
Now you ask; exist way too many drugs on the industry for the pharmacy professionals to keep high on every piece of information or are the requirements now to get into the market too tough and university students are shying away from that occupation? We require more pharmacy professionals so we need them yesterday. As the quantity of people and ratio of “old to young” inside our nation climbs we are going to also begin to see the labor shortages become a little more critical.
The Merger Between Eckerd Drug and Rite Aid may have helped just a little but not much since only a few stores is going to be actually closing unless these were down the street from the other person so we know Wal-Mart will likely be getting the slack if any customers wind up switching and they will be on the market 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 organization is very recession-insensitive. Young people need medicine when they are sick, whatever the state of the economy. Both rich and poor people in the united states get access to medicine. Some even reason that low-income people use more medicine due to free or low-cost drugs provided by government-assisted programs. Therefore the tenants should do well during hard time and possess money to pay rent to landlords.
Folks are living longer and need more medicine to sustain longevity, e.g. Actonel for osteoporosis, Aricept for Alzheimer’s symptoms. Seniors have a tendency to use more medicine than younger ones since they frequently have more medical problems. Because the 78 million baby boomers are receiving nearer to retiring age beginning from 2008, the drugstore chains anticipate the demand for medicine to improve in next 20 years.
The drug market will continue to expand because the US population is growing. More and more Americans are afflicted by various diseases. The amount of Americans is affected with seasonal allergies doubled in the last 15 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. Additionally, doctors also recommend treating various diseases sooner than later as a result of better understanding regarding the diseases. For example, doctors now prescribe antiretroviral drugs for patients shortly after contaminated with HIV virus instead of waiting for the infection to jbbkwv AIDS. More doctors combine insulin with oral medicines to take care of type-2 Diabetes rather than oral medicines alone. All of these factors increase the size 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 typically the highest growth segment inside the diagnostics industry. Many of these genetic tests will probably transform into direct-to-consumer testing kits available in drug stores soon.Upon FDA approval, these new products will potentially attract additional revenue for drug stores.