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Canadian Pharmacy Market
The Canadian pharmacy market is projected to grow significantly from $44.5 billion in 2019 to an undetermined amount by 2028, driven by factors such as rising health expenditures, increased disposable income, and a growing geriatric population. The market dynamics are impacted by competition, mergers, and regulatory frameworks, with major players like Shoppers Drug Mart and McKesson at the forefront. Despite challenges such as capped reimbursements for generic drugs, the sector is expected to thrive due to ongoing consolidation and diversification, along with a heightened demand for non-prescription products amid the pandemic.
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Canadian Pharmacy Market
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- 2. 2 Confidential Sample Draft Tableof Content 1. Canadian Pharmacy Market Overview ………………………………………………………………………………………………………………………..4 2. Market Growth Drivers……………………………………………………………………………………………………………………………………………6 a. Total Health Expenditure b. Per Capita Disposable Income c. Rise in Geriatric Population d. Decline in Real Price of Pharma Products 3. Market Growth Restraints ……………………………………………………………………………………………………………………………………….13 4. Pharmacy Market Segmentation ……………………………………………………………………………………………………………………………….15 a. Industry Products and Services ▪ Prescription Drugs ▪ Non-prescription Drugs ▪ General Retail b. Pharmacy Types ▪ Chain and Banner Pharmacies ▪ Hospital Pharmacies ▪ Online Pharmacies ▪ Independent Pharmacies
- 3. 3 Confidential Sample Draft Tableof Content 5. Competitive Landscape ……………………………………………………………………………………………………………………………………………17 a. Mergers and acquisitions b. Several Pharmacy Start-Up Companies 6. Key Company profiles ……………………………………………………………………………………………………………………………………………..20 a. Shoppers Drug Mart Corporation b. McKesson Corporation c. Metro Inc. d. Pharmasave e. FamiliPrix Inc. 6. Healthcare Policies and Regulatory Landscape ……………………………………………………………………………………………………………….26 7. Factors Driving Future Growth ……………………………………………………………………………………………………………………………………28 8. Conclusion ………………………………………………………………………………………………………………………………………………………........30
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- 5. 5 Confidential Sample Draft CanadianPharmacy Market- Market Size & Forecast Overview The overall Pharmacy market expected to increase from $44.5 billion in 2019 to $xx billion in 2028 at a CAGR of XX% 44.5 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Canadian Pharmacy Market Size ($Mn) (2019-2028) ▪ Canadian population’s drug expenditure in 2019 for prescription drugs was $ 34.5B and non-prescribed drugs was $ 5.9B. The average CAGR of the market is 1.4% ▪ There are a total of 11,427 licensed pharmacies in the nation, with 45,637 licensed pharmacists with 95% of them practising as licensed pharmacists and rest 5% as pharmacy technicians ▪ The total health expenditure in 2019 was % 265.5B. The increase in the health expenditure and prevalence of disease in different population is going to accelerate the pharmacy market in the coming years ▪ Content Key Findings
- 6. Pharmacy Market GrowthDrivers
- 7. 7 Confidential Sample Draft MarketGrowth Drivers Decline in Real Price of Pharma Products Rise in the Geriatric population Per Capita Disposable Income Market Growth Drivers of Canadian Pharmacy Market Total Health Expenditure
- 8. 8 Confidential Sample Draft MarketGrowth Drivers (continued) 1. Total Health Expenditure The total health expenditure in Canada in 2020 was $114.2B and is expected to increase to $138.2 in the year 2020. The healthcare expenditures are getting is reinforced by the growth in inflation. The increase in the health care spending have increased the purchases of drugs from pharmacies in the country Increase in the health expenditures is directly related to increase in demand of healthcare services which is directly proportional to increase in the demand for pharmacies. This has been a huge factor in enabling more and more pharmacy outlets and companies to open up Content Content
- 9. 9 Confidential Sample Draft MarketGrowth Drivers (continued) 2. Per Capita Disposable Income Per Capita Disposable Income is an individual’s personal income that is left after the payments of all direct taxes and various fees. This income decides an individual’s ability to purchase any good or service. Canada saw a growth an annual growth change of 3.6% in 2020 resulting in a total spending amount of $22.9B and it is expected to grow steadily in the following years With the increase in the per capita disposable income every year, individual’s have greater income to spend on healthcare products, which is on a rise due to increasing prevalence of diseases throughout different age groups. The rise in the purchase of health products will increase the growth of the pharmacy market in the nation Content Content
- 10. 10 Confidential Sample Draft MarketGrowth Drivers (continued) 3. Rise in Geriatric Population The population aged 65 and above in 2020 was 4,421.4 thousand people and increased to 7,082 thousand people in the year 2021 and the annualised growth rate from 2016-21 was +3.6% This increase in the geriatric population also means that the disease burden in the geriatric population has been increasing than before. The increase in the disease burden leads to higher pharmaceutical purchase from pharmacies. This will enable in the growth of the pharmacy market Content Content
- 11. 11 Confidential Sample Draft MarketGrowth Drivers (continued) 4. Decline in Real Price of Pharma Products The Canadian Government announced the reduction in drug prices of patented drugs. This will help the population in affording pharma products that are not covered by their insurance There is also an increase in the competition scenario in the nation’s pharmacy scenario. This competition leads to pharmacies reducing their drug prices, to attract more payers and population. This will help drive forward the market Content Content
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- 13. 13 Confidential Sample Draft MarketRestraints 1. Capping of Reimbursement Rates of Generic Drugs Pharmacists and pharmacies have been facing the brunt of the loss due to the capping of reimbursement rates of generic drugs. The generic drug market is growing due to the therapeutic replacements they have been creating for branded drugs The increasing popularity of the generic drug market has even though increased the sales, but the capping of the reimbursement rates is being troublesome to the pharmacists Content Content
- 14. Canadian Pharmacy MarketSegmentation
- 15. 15 Confidential Sample Draft MarketSegmentation: By Drug Type Market Share, By Drug Type (%), 2020 ▪ In Canada, 63.9% of the population is covered for prescription drugs by a private drug plan, 36.1% of the population is covered by a public plan ▪ Since, the prescription coverage is high, the purchase of non-prescription drugs amongst the population is low. ▪ Content ▪ Content ▪ Content Key Highlights Prescription Drugs Non-Prescription Drugs General Retail
- 16. 16 Confidential Sample Draft MarketSegmentation: By Pharmacy Groups Market Share, By Pharmacy Groups (%), 2020 ▪ In the pharmacy groups, the chain and banner pharmacies have the highest number of pharmacies. The reason for such a high number is due to their popularity and due to the probability of finding all the drugs or healthcare products needed, to be available ▪ Independent pharmacies are less in number than chain pharmacies due to less popularity and their independency, but more in number than hospital pharmacies ▪ Content ▪ Content ▪ Content Key Highlights Chain and Banner Pharmacies Hospital Pharmacies Online Pharmacies Independent Pharmacies
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- 18. 18 Confidential Sample Draft CompetitiveLandscape: Mergers And Acquisitions Acquisition Rx Drug Mart Inc., a leading Canada operator of independent pharmacies acquired Forewest Holding Inc., an operator with 35 pharmacy locations in British Columbia and Alberta. This acquisition will strengthen Rx’s presence in Western Canada, establishing itself as the fastest and largest growing independent pharmacy chain in Canada McKesson Corporation, the largest pharmaceutical distributor acquired Rexall health, a Canadian retail pharmacy chain. This acquisition has helped McKesson to establish itself in the Canadian Market, with acquiring approximately 470 Rexall Stores. Acquisition Content Content
- 19. 19 Confidential Sample Draft SeveralPharmacy Start-up Companies in Canada Content HealthBank Technologies is a healthcare technology company that is helping insurance and consumer co-payments by building a financial OS. They will provide their financial OS to hospitals and pharmacies, and other services Toronto-based Healthtech start-up ‘Locke Bio’ is and healthcare meets e-commerce platform that will North American companies to launch direct-to-consumer (DTC) digital health and pharmaceutical brands. This platform will help launch online pharmacy brands Content
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- 21. 21 Confidential Sample Draft ShoppersDrug Mart Corporation Company Name Shopping Drug Mart Corporation Year of establishment 1962 Headquarter Toronto, Canada Revenue $14.2B Website www.shoppersdrugmart.com ▪ Shoppers Drug mart Corporation is Canada’s leading pharmacy retailer with stores at 1300+ locations in the country ▪ Shoppers mart was acquired by Loblaw companies in 2013. But the stores still function under the same name ▪ Content 14.2 2020 2024 2028 Revenue ($Bn) 14.2 2020 2024 2028 Revenue ($Bn) Company Overview and Analysis Revenues ($ Mn), 2019-2028
- 22. 22 Confidential Sample Draft McKessonCorporation Company Name McKesson Corporation Year of establishment 1914 Headquarter Irwing, Texas, USA Revenue $ 238B Website www.mckesson.com Company Overview and Analysis ▪ McKesson Canada has been partnering with the key players in the Canada health care industry to create an efficient system. ▪ They find health care solutions, medical supplies and pharmaceuticals for retail pharmacies, manufacturers, hospitals, Governments ▪ Content Retail Pharmacy Segment Revenues ($ Bn), 2020-2028 2.7 2020 2024 2028
- 23. 23 Confidential Sample Draft MetroInc. Company Name Metro Inc. Year of establishment Headquarter Revenue Website ▪ Content Company Overview and Analysis Retail Pharmacy Segment Revenues ($ Bn), 2020-2028 2020 2024 2028
- 24. 24 Confidential Sample Draft PharmaSave CompanyName PharmaSave Year of establishment Headquarter Revenue Website Company Overview and Analysis ▪ Content Retail Pharmacy Segment Revenues ($ Bn), 2020-2028 2020 2024 2028
- 25. 25 Confidential Sample Draft FamiliprixInc. Company Name FamiliPrix Inc. Year of establishment Headquarter Revenue Website ▪ Content Company Overview and Analysis Retail Pharmacy Segment Revenues ($ Bn), 2020-2028 2020 2024 2028
- 26. Healthcare Policies andRegulatory Landscape
- 27. 27 Confidential Sample Draft HealthcarePolicies and Regulatory Landscape Health Canada’s compliance and enforcement mandate includes inspecting community pharmacies to ensure compliance with the Controlled Drugs and Substances Act (CDSA) and its associated regulations. (Health Canada Report, 2019) Under the Canada Health Act, all the prescription drugs that are administered in Canadian Hospitals, are provided at zero cost to the patient. Out side of the hospital setting, the provincial and territorial governments are in charge for the administration of their own publicly-funded drug plans Content Content
- 28. Factors Driving FutureGrowth
- 29. 29 Confidential Sample Draft FactorsDriving Future Growth In the light of the ongoing pandemic, there has been an increasing demand for the industry’s non-prescription pharma products, to stock up in their households. This has brought about a positive growth in the non-prescription segment Pharmacies in Canada, especially in Ontario, have been administering the Covid-19 vaccination for the population of 55 and above. This would prove to a huge growth factor for the pharmacies Content Content
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- 31. 31 Confidential Sample Draft Conclusion ▪The Canadian Pharmacy Market is thriving currently and will continue to thrive due to the rampant consolidation activities and huge diversifications of products and services ▪ The immediate association of the market with the US pharmacy market and pharmaceutical companies and mergers and acquisitions with the US companies will drive the sales and diversification of the pharmacy chains and independent pharmacies ▪ Even after the capping of the reimbursement rates of generic drugs, the pharmacies have managed to stay afloat ▪ The Covid-19 pandemic associated sales have escalated the profit margins of the pharmacies, strengthening their survival in the market