It is well known that there are many industries in the United States of America right now have an intense labor shortage. A whole lot worse in a number of these industries you will find not enough kids in school going after the proper college degrees in order to work in these industries. Even worse in addition to that is the fact that over regulation in numerous industries is causing ongoing education requirements and making it tougher for folks to maintain licenses to even work in the market.
One industry which is within a huge labor shortage is definitely the pharmacy business. Companies like Rite Aid and Eckerd Drugs have a really difficult time securing men and women to work behind the counters inside the pharmacy. Now that Rite Aid Pharmacy Sunday hours have merged this might assist the labor shortage temporarily, however meanwhile Wal-Mart has entered the market in a big way. This means the labor shortage will likely continue.
Now you ask; exist a lot of drugs on the industry for the pharmacy professionals to stay high on all the details or are definitely the requirements now to get into the business too tough and university students are shying from that profession? We require more pharmacy professionals and we need them yesterday. As the number of people and ratio of “old to young” inside 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 could have helped just a little but not much since not many stores will likely be actually closing unless these were down the street from one another so we know Wal-Mart will likely be picking up the slack if any customers wind up switching and they will 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 since February 2011 and 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. Young people need medicine when they are sick, regardless of the state of the economy. Both rich and poor people in the united states get access to medicine. Some even argue that low-income people use more medicine as a result of free or low-cost drugs provided by government-assisted programs. And so the tenants ought to do well during hard time and possess money to pay rent to landlords.
Individuals are living longer and want more medicine to sustain longevity, e.g. Actonel for osteoporosis, Aricept for Alzheimer’s symptoms. Seniors tend to use more medicine than younger ones as they frequently have more medical problems. Since the 78 million baby boomers are getting nearer to retiring age starting from 2008, the drugstore chains anticipate the interest in medicine to boost in next 20 years.
The drug market continues to expand as the US population continues to grow. A lot more Americans suffer from various diseases. The amount 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. As 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, along with high cholesterol at younger and younger ages. In addition, doctors also recommend treating various diseases sooner than later as a result of better understanding regarding the diseases. For instance, doctors now prescribe antiretroviral drugs for patients right after contaminated with HIV virus instead of waiting for the problem to jbbkwv AIDS. More doctors combine insulin with oral medicines to deal with type-2 Diabetes rather than oral medicines alone. All these factors increase the size of the drug market.
· Advance in genetic engineering has introduced various new genetic DNA testing kits which permit the genetic diagnosis of vulnerabilities to inherited diseases and disorders. Genetic testing is typically the highest growth segment in the diagnostics industry. Some of these genetic tests will likely transform into direct-to-consumer testing kits obtainable in drug stores soon.Upon FDA approval, these new releases will potentially attract additional revenue for pharmacies.