It is well known that there are many industries in the United States of America today have an intense labor shortage. Even worse in many of these industries there are not enough kids in school going after the right college degrees in order to work in these industries. Even worse in addition to that is the fact that over regulation in lots of industries is bringing about ongoing education requirements and making it tougher for individuals to maintain licenses to even work in the market.
One industry that is within huge labor shortage is definitely the pharmacy business. Brands like Rite Aid and Eckerd Drugs have a really tough time securing people to work behind the counters in the pharmacy. Now that Rite Aid Pharmacy hours today have merged this might help the labor shortage temporarily, however meanwhile Wal-Mart has entered the marketplace in a big way. This means the labor shortage will likely continue.
Now you ask; are there a lot of drugs on the market for the pharmacy professionals to stay on all the details or would be the requirements now to gain access to the market too tough and students are shying away from that career path? We require more pharmacy professionals so we need them yesterday. As the quantity of people and ratio of “old to young” in 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 although not much since not many stores will likely be actually closing unless they were across the street from each other so we know Wal-Mart is going to be obtaining the slack if any customers wind up switching and they can be on the marketplace for 1,000s of the latest 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 pharmacies as of February 2011 and it has an S&P rating of B-.
Investors purchase properties occupied by these drugstore chains for your following reasons:
The drugstore organization is very recession-insensitive. People need medicine if they are sick, regardless of the state in the economy. Both rich and poor people in america gain access to medicine. Some even reason that low-income people use more medicine because of free or low-cost drugs provided by government-assisted programs. So the tenants ought to do well during tough time and have money to pay rent to landlords.
People are living longer and need more medicine to sustain longevity, e.g. Actonel for osteoporosis, Aricept for Alzheimer’s symptoms. The elderly tend to use more medicine than younger ones since they often have more medical conditions. Because the 78 million baby boomers are receiving nearer to retiring age starting from 2008, the drugstore chains anticipate the interest in medicine to improve in next 20 years.
The drug market continues to expand since the US population continues to grow. Increasingly more Americans are afflicted by various diseases. The number of Americans suffers from seasonal allergies doubled in the last 20 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 become either overweight or obese by 2020), more Americans are diagnosed with diabetes, together with high-cholesterol at younger and younger ages. In addition, doctors also recommend treating various diseases earlier than later as a result of better understanding concerning the diseases. For example, doctors now prescribe antiretroviral drugs for patients soon after infected with HIV virus rather than waiting for the problem to jbbkwv AIDS. More doctors combine insulin with oral medicines to treat type-2 Diabetes rather than just oral medicines alone. All of these factors increase how big the drug market.
· Advance in genetic engineering has introduced various new genetic DNA testing kits which allow the genetic diagnosis of vulnerabilities to inherited diseases and disorders. Genetic testing is typically the highest growth segment in the diagnostics industry. A few of these genetic tests will probably transform into direct-to-consumer testing kits available in pharmacies soon.Upon FDA approval, these new products will potentially generate additional revenue for drug stores.