Global Pharmacy Benefit Management Market 2017-2021 - Disruption of Key M&A & Growing Focus on Promotional Activities

DUBLIN, Dec. 18, 2017 /PRNewswire/ --

The "Global Pharmacy Benefit Management Market 2017-2021" report has been added to Research and Markets' offering.

The global pharmacy benefit management market to grow at a CAGR of 6.14% during the period 2017-2021.

Global Pharmacy Benefit Management Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

One trend in the market is disruption of key M&A. The market is heavily reliant on key M&A as they can determine whether a new combined entity will emerge and threaten to occupy the larger market share. Key mergers between two mid-sized companies could also propel them to form a combined entity, which would command a greater market share.

According to the report, one driver in the market is increasing global healthcare expenditure. The growing prevalence of generic and chronic diseases and low co-payment or co-insurance costs have resulted in the increase in healthcare expenditures across the world. Healthcare expenditure is the measure of the overall amount spent on healthcare products and services. This also includes personal healthcare such as rehabilitative care, long-term care, and ancillary services. Healthcare is financed through a mix of financing arrangements including government spending and compulsory health insurance as well as voluntary health insurance and private funds such as households' out-of-pocket payments and private corporations.

Further, the report states that one challenge in the market is unclear revenue models. Pharmacy benefit management companies have faced criticism with regards to their revenue models and how they disclose limited information about their revenue sources. The lack of a global regulatory body has been cited in federal courts and senate meetings in the US as the root cause of unfair business practices being prevalent in the market. It has been alleged that the market lacks three essential elements that define a competitive market. They are transparency, choice, and lack of conflicts of interest. These aspects individually or in combination have prevailed in the market and have given rise to PBMs engaging in anticompetitive, deceptive, and fraudulent conduct.