Amid Segment Growth, Specialty Distributors Achieve High-Service Efficiencies, Enhanced Reliability

Amid Segment Growth, Specialty Distributors Achieve High-Service Efficiencies, Enhanced Reliability

New benchmarking data released by the HDA Research Foundation illustrate the continued value of HDA specialty distributors to the U.S. healthcare ecosystem. As reported in the 16th edition of Specialty Pharmaceutical Distribution Facts Figures and Trends, a typical specialty distribution facility received 4,600 orders of medicines in 2023 (an increase of 10 percent over the previous year). The industry achieved a 99.4 percent order fill rate, delivering medications to provider customers in an average of 1.3 days.

Hospitals remained the largest customer segment for specialty distributors, with hospitals accounting for an average of 37.9 percent of revenue. Sales to physicians' offices and independent physician-owned and -operated clinics accounted for an average of 30.7 percent of earnings, while transactions to specialty pharmacies accounted for 19.5 percent of sales.

Revenue in oncology therapeutic areas achieved 51.9% of specialty distributors' sales volume. Autoimmune and inflammatory therapeutics made up 12.4 percent of distributors' total sales volume in 2023, followed by supportive care drugs (6.6 percent).

"The HDA Foundation's recent edition of the Specialty Pharmaceutical Distribution Facts Figures and Trends highlights how specialty distributors have thrived within this unique product segment," said Perry Fri, Executive Vice President of Industry Relations, Membership and Education, HDA; and COO, HDA Research Foundation. "Despite specialty products becoming more complex over the years, our data show how HDA specialty distributors continue to adapt to deliver efficiency and reliability for providers - and for patients being treated for chronic, complex and rare diseases."

The primary research in this report includes survey data from the corporate level of HDA specialty distributor member companies. Those companies reported sales of $1 billion or more for fiscal year 2023, whose average gross specialty sales were $44.8 billion and distribute specialty pharmaceutical products nationally. Secondary research from leading healthcare organizations complements primary findings.

As further highlighted in the latest edition:

• Specialty distributors reported having agreements in place with an average of 223 manufacturers, a slight increase from 2022.
• The average number of lines picked per day was 11,428, with an average of 3.7 lines per order.
• In 2023, distributors reported that they carried a weighted average of 21.4 days of inventory, a decrease of 1.8 days from the prior year.
• Distributors reported spending an average of $16.2 million on packing material.

The 2024 edition of Specialty Pharmaceutical Distribution Facts Figures and Trends is available as a complimentary download from HDA.org. The publication is supported by gold sponsors Eisai, Inc. and Johnson & Johnson Health Care Systems Inc.; silver sponsors Regeneron and Takeda Pharmaceuticals U.S.A, Inc.; and bronze sponsor AstraZeneca.