The National Community Pharmacists Association (NCPA) Digest recently released its 2015 annual report on the pharmacy industry's economic climate, prompting Drug Channels Institute CEO Adam Fein to offer his own analysis of the data.
The data reveals that, though sales may be down, pharmacists are earning a decent living, Fein said. A pharmacist owning one pharmacy earned an average of $228,000 in 2014, while the number of independent pharmacies fell slightly.
The overall gross margin in 2014, which is made from nonprescription products and prescriptions, dropped slightly over the past year to 22.9 percent.
Pharmacists' profit margins also went well and remained stable, Fein said. The estimated margin from prescription sales in 2014 was 22.3 percent. The gross profit from a prescription fell, however. In 2013, revenue from a prescription was $57.50, while in 2014, it was $54.41. The revenue decline is expected with the prescription decline. In 2014, the prescription revenue dropped to $3.4 million, down from $3.5 million in previous years dating back to 2011.
Fein also pointed out that owners of pharmacies are doing quite well, despite the drop in revenue. As mentioned above, average 2014 income was $228,000, which was a drop from $247,000 in 2013. It’s important to know that a pharmacy owner makes double that of a pharmacist.
For Fein's full analysis of the NCPA report, visit www.drugchannels.net.
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