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 on top of that is the fact that over regulation in lots of industries is causing ongoing education requirements and making it tougher for individuals to maintain licenses to even work in the industry.
One industry that is within a huge labor shortage is definitely the pharmacy business. Companies like Rite Aid and Eckerd Drugs have a really difficult time securing individuals to work behind the counters within the pharmacy. Now that Rite Aid hours have merged this might assist the labor shortage temporarily, however meanwhile Wal-Mart has entered the current market in a big way. This implies the labor shortage will in all probability continue.
Now you ask; are there a lot of drugs on the industry for the pharmacy professionals to stay up on every piece of information or are the requirements now to gain access to the industry too tough and university students are shying away from that career path? We must have more pharmacy professionals so we need them yesterday. As the amount of people and ratio of “old to young” in our nation climbs we are going to also begin to see the labor shortages be a little more critical.
The Merger Between Eckerd Drug and Rite Aid could have helped a little although not much since not many stores will likely be actually closing unless these people were down the street from one another so we know Wal-Mart is going to be picking up the slack if any customers wind up switching and they can be on the market for 1,000s of brand new pharmacists too.
Rite Aid ranks third (fourth, behind Walmart when it comes to prescription revenues) with market cap of $1.49 Billion, $26.1 Billion in revenue ($17.1B from prescription revenues), operates 4714 drug stores as of February 2011 and contains an S&P rating of B-.
Investors purchase properties occupied by these drugstore chains for that following reasons:
The drugstore business is very recession-insensitive. People need medicine while they are sick, whatever the state of the economy. Both rich and poor people in the US gain access to medicine. Some even debate that low-income people use more medicine as a result of free or low-cost drugs available from government-assisted programs. So the tenants ought to do well during tough time and have money to pay rent to landlords.
Folks are living longer and require more medicine to sustain longevity, e.g. Actonel for osteoporosis, Aricept for Alzheimer’s symptoms. Seniors tend to use more medicine than younger ones because they usually have more medical conditions. Since the 78 million baby boomers are receiving nearer to retiring age beginning with 2008, the drugstore chains anticipate the need for medicine to boost in next two decades.
The drug market will continue to expand because the US population is growing. A lot more Americans are afflicted by various diseases. The number of Americans is suffering 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. As his or her waist lines balloon (75% of Americans are forecasted to be either overweight or obese by 2020), more Americans are clinically determined to have diabetes, together with high cholesterol at younger and younger ages. Furthermore, doctors also recommend treating various diseases earlier than later as a result of better understanding regarding the diseases. As an example, doctors now prescribe antiretroviral drugs for patients soon after infected with HIV virus instead of awaiting the infection to jbbkwv AIDS. More doctors combine insulin with oral medicines to treat type-2 Diabetes rather than just oral medicines alone. Each one of 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 diagnosis of vulnerabilities to inherited diseases and disorders. Genetic testing is typically the highest growth segment inside the diagnostics industry. Many of these genetic tests will likely transform into direct-to-consumer testing kits offered in pharmacies soon.Upon FDA approval, these new releases will potentially bring in additional revenue for drug stores.