It is well known that there are many industries in the United States of America today have an intense labor shortage. A whole lot worse in many of these industries you will find not enough kids in school going after the correct college degrees to be able to work in these industries. Even worse on top of that is the fact that over regulation in lots of industries is causing ongoing education requirements and making it tougher for folks to maintain licenses to even work in the business.
One industry which is within a huge labor shortage will be the pharmacy business. Companies like Rite Aid and Eckerd Drugs use a really difficult time securing people to work behind the counters inside the pharmacy. Given that Rite Aid Pharmacy christmas hours have merged this could assist the labor shortage temporarily, however meanwhile Wal-Mart has entered the current market in a big way. This implies the labor shortage will most likely continue.
Now you ask ,; are there way too many drugs on the market for the pharmacy professionals to stay up on all the information or are the requirements now to gain access to the market too tough and college students are shying far from that occupation? We must have more pharmacy professionals so we need them yesterday. As the amount of people and ratio of “old to young” inside our nation climbs we shall also 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 very few stores will likely be actually closing unless these people were down the street from the other person and that we know Wal-Mart is going to be picking up the slack if any customers wind up switching and they can be on the industry for 1,000s of brand new pharmacists too.
Rite Aid ranks third (fourth, behind Walmart with regards to prescription revenues) with market cap of $1.49 Billion, $26.1 Billion in revenue ($17.1B from prescription revenues), operates 4714 pharmacies at the time of February 2011 and has an S&P rating of B-.
Investors purchase properties occupied by these drugstore chains for your following reasons:
The drugstore business is very recession-insensitive. Individuals need medicine while 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 reason that low-income people use more medicine due to free or low-cost drugs provided by government-assisted programs. Therefore the tenants should do well during hard time and also have money to pay for rent to landlords.
People are living longer and want more medicine to sustain longevity, e.g. Actonel for osteoporosis, Aricept for Alzheimer’s symptoms. The elderly tend to use more medicine than younger ones as they often have more medical problems. Since the 78 million baby boomers are receiving even closer to retiring age starting from 2008, the drugstore chains anticipate the need for medicine to boost in next twenty years.
The drug market consistently expand as the US population continues to grow. More and more Americans have problems with various diseases. The number of Americans suffers from seasonal allergies doubled in the last fifteen 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 be either overweight or obese by 2020), more Americans are identified as having diabetes, in addition to high-cholesterol at younger and younger ages. Furthermore, doctors also recommend treating various diseases sooner than later due to better understanding concerning the diseases. For instance, doctors now prescribe antiretroviral drugs for patients soon after contaminated with HIV virus rather than waiting for the infection to jbbkwv AIDS. More doctors combine insulin with oral medicines to deal with type-2 Diabetes instead of just oral medicines alone. Each one of these factors increase the size of the drug market.
· Advance in genetic engineering has introduced various new genetic DNA testing kits that allow the genetic diagnosis of vulnerabilities to inherited diseases and disorders. Genetic tests are typically the highest growth segment within the diagnostics industry. Many of these genetic tests will likely transform into direct-to-consumer testing kits obtainable in drug stores in the future.Upon FDA approval, these new products will potentially bring in additional revenue for drug stores.