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 can find not enough kids in school going after the correct college degrees in order to work in these industries. Even worse on top of that is the fact that over regulation in many industries causes ongoing education requirements and making it tougher for individuals to maintain licenses to even work in the business.
One industry that is within huge labor shortage will be the pharmacy business. Companies like Rite Aid and Eckerd Drugs have a really difficult time securing individuals to work behind the counters inside the pharmacy. Given that Rite Aid Pharmacy hours of operation have merged this could 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.
Now you ask ,; exist a lot of drugs on the industry for the pharmacy professionals to keep high on all the details or are the requirements now to get into the market too tough and college students are shying away from that occupation? We need more pharmacy professionals and that we need them yesterday. As the number of people and ratio of “old to young” in our nation climbs we will also see the labor shortages become more critical.
The Merger Between Eckerd Drug and Rite Aid might have helped a little although not much since only a few stores will likely be actually closing unless these people were down the street from one another so we know Wal-Mart will likely be obtaining the slack if any customers end up switching and they will be on the market for 1,000s of the latest 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 at the time of February 2011 and 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. Individuals need medicine when they are sick, whatever the state in the economy. Both rich and poor people in the US gain access to medicine. Some even argue that low-income people use more medicine due to free or low-cost drugs available from government-assisted programs. So the tenants must do well during difficult time and have money to pay for rent to landlords.
Folks are living longer and require more medicine to sustain longevity, e.g. Actonel for osteoporosis, Aricept for Alzheimer’s symptoms. Older people often use more medicine than younger ones because they frequently have more medical conditions. Because the 78 million baby boomers are getting even closer to retiring age starting from 2008, the drugstore chains anticipate the need for medicine to boost in next twenty years.
The drug market consistently expand since the US population keeps growing. Increasingly more Americans suffer from various diseases. The number of Americans suffers from seasonal allergies doubled within the last 15 years to 37 million people per Fortune magazine. They spent $5.4 Billion in 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 identified as having diabetes, along with high-cholesterol at younger and younger ages. Furthermore, doctors also recommend treating various diseases earlier than later as a result of better understanding concerning the diseases. As an example, doctors now prescribe antiretroviral drugs for patients soon after contaminated with HIV virus as opposed to 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 proper diagnosis of vulnerabilities to inherited diseases and disorders. Genetic tests are currently the highest growth segment in the diagnostics industry. Some of these genetic tests will likely transform into direct-to-consumer testing kits available in drug stores in the near future.Upon FDA approval, these new items will potentially generate additional revenue for pharmacies.