Visiongain launches new report - Top 20 pharmaceutical wholesale & distribution organizations 2018: Branded Drugs, Generic Drugs, Leading Companies For the TOC click on : https://www.visiongain.com/report/top-20-pharmaceutical-wholesale-distribution-organizations-2018/ Please contact abhi.ambi@visiongain.com for a report overview.

1. www.visiongain.com/pharma
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Top 20 Pharmaceutical Wholesale & Distribution
Organizations 2018: Branded Drugs, Generic Drugs, Leading Companies
Figure 3.1 The Global Pharmaceutical Wholesale and Distribution Market:
Drivers and Restraints, 2017
3.2 The Pharmaceutical Wholesale and Distribution Industry:
World Market Forecast, 2016-2027
The global pharmaceutical wholesale and distribution market will grow steadily throughout the
forecast period, to generate revenue of $1,568.53bn in 2027. Between 2016 and 2021, the market
will expand at a CAGR of 6.0% (Table 3.1). Between 2021 and 2027 the market will expand at a
slightly lower CAGR of 4.6%. This expansion will be driven by the increased demand for
pharmaceutical products worldwide, but particularly in the emerging markets. Whilst the developed
markets will expand steadily over the forecast period, the emerging markets will achieve high rates
of annual growth, Visiongain predicts.
Source: Visiongain 2018
Drivers Restraints
• Drug prices cuts set by the government
due to lower healthcare budget will
restrain growth
• Patent expiry of high priced branded
drugs resulting in entrance of lower
priced generic drugs will limit growth in
revenue
• Rise in direct-to-pharmacy distribution
model in some developed markets will
lower revenue growth
• Ageing population resulting in increase
of age related diseases
• Increasing demand for prescription
drugs will drive growth in the industry
• Rapid increase in the demand for
prescription drugs in the emerging
markets
• Anti-counterfeiting measures will
secure the supply chain

2. www.visiongain.com/pharma
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Top 20 Pharmaceutical Wholesale & Distribution
Organizations 2018: Branded Drugs, Generic Drugs, Leading Companies
As a result of this generic substitution, the wholesale and distribution generic drugs will steadily
increase over the course of the forecast period (Table 3.2). In 2021, generic drugs will account for
22.7% of the market. In 2027, generic drugs will account for 29.5% of the market. The use of
generic drugs will increase over the forecast period, encouraged by government pricing pressures
in developed countries.
The market for other services provided by pharmaceutical wholesalers and distributors will
increase gradually over the forecast period. In 2027, this business segment will claim a market
share of 4.0%, an increase from 3.4% on 2016 market share. Technological solutions offered by
wholesalers and distributors will be increasingly employed by customers over the forecast period in
an effort to keep inventory management costs down and services efficient. In 2027, this sector will
generate revenue of $61.96bn.
Figure 3.4 Branded Drugs, Generic Drugs and Others: Market Shares (%),
2021
Source: Visiongain 2018

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Top 20 Pharmaceutical Wholesale & Distribution
Organizations 2018: Branded Drugs, Generic Drugs, Leading Companies
4.8.1 Alfresa Holdings: Historical Performance, 2011-2017
During the historical period 2011 to 2017, Alfresa Holdings saw positive increase in revenue with
consolidated sales of ¥2,183.4bn ($27.6bn) in 2011 to ¥2,551.8bn ($22.7bn) in 2017. The highest
growth rate attained in this period was 6.9% in 2012 (Table 4.43 and Figure 4.31).
The fiscal year 2014 which ended on March 31, 2015 was the first year of the “13-15 Medium-term
Management Plan – Advancement and Expansion-Next Stage”. During FY2014 year, Alfresa
Holding’s operations generated total revenue of ¥2,504.5bn ($22.78bn), an increase of 4.9% from
the previous year. Of this revenue, gross profit amounted to ¥171.54bn ($1.56bn. However, in
2015 growth decreased by -3.3% and gross profit decreased at the same rate. This new
management plan will come to fruition and impact the company positively in the next year and will
be ending in the fiscal year 2016. The aim of this medium-term plan is to attain 2.6 trillion by 2016
with operating margin more than 1.0%. In addition, the company generated revenue of
¥2,576.41bn ($22.86bn) with growth of 6.4% in the year ended March 31, 2016, demonstrating
recovery and growth from declining revenues. In the fiscal year 2015, company formulated new
management policy named “Challenge3” to anticipate environmental changes involving internal
reforms.
Table 4.43 Alfresa Holdings: Historical Revenue (¥bn, $bn), Revenue AGR
(%), Revenue CAGR (%), Gross Profit (¥bn, $bn), Gross Profit AGR (%) and
Gross Profit CAGR (%), 2011-2017
2011 2012 2013 2014 2015 2016 2017
Revenue ($bn) 27.6 28.1 23.8 22.8 19.2 22.9 22.7
Revenue (¥bn) 2,183.4 2,333.3 2,387.5 2,504.5 2,421.2 2,576.4 2,551.8
Annual Revenue Growth
(%)
6.9% 2.3% 4.9% -3.3% 6.4% -1.0%
CAGR 2011-2017 2.6%
Gross Profit ($bn) 1.8 1.7 1.6 1.6 1.3 1.8 1.6
Gross Profit (¥bn) 143.1 144.0 159.4 171.5 165.8 197.2 182.6
Gross Profit Annual
Growth%
0.6% 10.6% 7.6% -3.3% 18.9% -7.4%
CAGR 2011-2017 4.1%
Source: Visiongain 2018, Alfresa Holdings Annual Report
Alfresa Holdings reports their financial data in Japanese Yen (¥). Therefore, for the purpose of
this report the annual growth rate were calculated using the revenue value in Japanese Yen (¥)
to portray true historical trend. However, we have also included corresponding historical revenue
in US Dollars ($). Please note all future forecasts are in US Dollars ($).