The global Pharmacy Benefit Management Market is estimated to be valued at US$ 858.38 Bn in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Pharmacy benefit management (PBM) refers to third party management of pharmaceutical benefits that provides healthcare plans and employers to manage prescription drug costs in a cost effective manner. PBMs develop and maintain closed networks of retail pharmacies, mail-order pharmacies and specialty drug pharmacies.
Market key trends:
One of the key trend in the pharmacy benefit management market is increasing number of value-based contracts between PBMs and pharmaceutical manufacturers/drug developers. Under these contracts, PBMs and pharmaceutical companies agree to tie the drug payment to its effectiveness or success. This helps in reducing the overall healthcare costs by avoiding unnecessary treatment and expenditures on ineffective drugs. Such outcomes-based reimbursement agreements ensure that drugs deliver expected patient outcomes and high quality of life.
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Market Key Trends:
The Pharmacy Benefit Management market has been witnessing increasing consolidation over the past few years. Major PBM players have been acquiring smaller PBMs to expand their market share and offerings. For instance, Express Scripts acquired eviCore healthcare in 2018 to expand its specialty pharmacy business. Another key trend in this market is the rise of web-based and mobile-based pharmacy benefit management platforms. These platforms allow payers and patients to manage prescriptions and claims electronically, thereby improving efficiency and convenience.
SWOT Analysis
Strength: Consolidation of major players has increased their negotiating power with drug manufacturers and pharmacies.
Weakness: Regulatory scrutiny over non-transparent business practices of large PBMs.
Opportunity: Growing geriatric population and increasing prevalence of chronic diseases is driving the demand for pharmaceutical drugs.
Threats: Entry of new agile players with advanced digital platforms poses competition to established PBM companies.
Key Takeaways
The global Pharmacy Benefit Management market is expected to witness high growth, exhibiting CAGR of 6.0% over the forecast period 2023 to 2030, due to increasing prevalence of chronic diseases. The market size for 2023 is estimated to be US$ 858.38 Bn.
Regional analysis: North America currently dominates the global PBM market owing to the well-established healthcare system in the US. However, Asia Pacific is expected to exhibit the fastest growth during the forecast period with expanding medical insurance coverage in countries like China and India.
Key players operating in the Pharmacy Benefit Management market are CVS Health, SS&C Technologies, Inc.,Anthem Inc., Medimpact, Express Scripts Holding Company, Benecard, Services, LLC, CaptureRx Inc., Change Healthcare, OptumRx, Inc., Cigna. Major players are focusing on strategic acquisitions and partnerships to strengthen their product portfolio and market presence.
