Market Issues Affecting An OTC Medicine Wholesaler
By Tanisha Berg
Health care, and specifically the market for medication, is a gigantic concern. Annual revenues of pharmaceutical suppliers measure billions and billions of dollars. Virtually every condition in modern medicine has its associated drugs. Then there are also the alternative therapies, such as naturopathy, or cosmetic treatments and dietary supplements. Pharmacies are the retailers in the market, but on their side they have to negotiate some common issues in their interactions with their OTC medicine wholesaler (OTC stands for over-the-counter).
Wholesalers are the enterprises in the economy who purchase their merchandise from the manufacturers and importers and sell it on to the retailers. They therefore have to compare pricing on a global basis. This may involve the exchange rate with an overseas currency, or the comparative properties of different available products in a single market niche, such as beauty ointments or herbal supplements.
Patent is another thorny issue surrounding the pharma trade. Medications that are still on patent can't be provided by other companies, only by the patent holder. The latter typically charges a high price for the medication, and may also pass on supply problems to those further down the market chain. Pharmaceutical enterprises traditionally do not cancel patents and sometimes try to extend them.
However, where a patent has expired, lesser known manufacturing enterprises immediately try to present their generic alternatives to market role-players. The generic options are always much less expensive. They may also be produced in overseas countries. Wholesalers therefore need to be able to negotiate successfully with foreign-based suppliers in an attempt to secure the cheapest product for their customers.
But there is another issue besides the price. Medicines are specially designed chemical formulations. They are used to treat specific symptoms. Some of them have severe side-effects. People who sell them should be able to examine a new tablet or capsule to determine its chemical composition, its effectiveness and, last but definitely not least, its safety. This might be harder to do if the manufacturer is based overseas or has no track record of exporting to a certain country.
This is particularly important for those who sell OTC medicine. Customers who buy OTC products are not doing so due to the advice or instructions of a doctor. Some customers are able to ask for a specific medication, but others simply arrive at the pharmacy or even the supermarket and ask sales staff for their opinion on the symptoms that they describe. Supplying the right medication may sometimes be more a matter of a very effective non-specific tablet than appropriate medical knowledge or experience.
What exacerbates the absence of a doctor in the OTC process is the lack of education of some patients. They do not understand the chemical action of the medicine or why it is necessary for their condition. They cannot make sense of the package insert either. If they have no prescription, they therefore rely entirely on the dispensing person's opinion. The responsibility of making sure that medicine is appropriate and safe to use then devolves onto the wholesaler.
OTC medicine is used by people who are trying to eliminate the cost of visiting a doctor. The market offering in the OTC sector is determined largely by its wholesalers, via their purchasing and importation objectives. Patients require them to source effective medicine at the lowest cost.
Wholesalers are the enterprises in the economy who purchase their merchandise from the manufacturers and importers and sell it on to the retailers. They therefore have to compare pricing on a global basis. This may involve the exchange rate with an overseas currency, or the comparative properties of different available products in a single market niche, such as beauty ointments or herbal supplements.
Patent is another thorny issue surrounding the pharma trade. Medications that are still on patent can't be provided by other companies, only by the patent holder. The latter typically charges a high price for the medication, and may also pass on supply problems to those further down the market chain. Pharmaceutical enterprises traditionally do not cancel patents and sometimes try to extend them.
However, where a patent has expired, lesser known manufacturing enterprises immediately try to present their generic alternatives to market role-players. The generic options are always much less expensive. They may also be produced in overseas countries. Wholesalers therefore need to be able to negotiate successfully with foreign-based suppliers in an attempt to secure the cheapest product for their customers.
But there is another issue besides the price. Medicines are specially designed chemical formulations. They are used to treat specific symptoms. Some of them have severe side-effects. People who sell them should be able to examine a new tablet or capsule to determine its chemical composition, its effectiveness and, last but definitely not least, its safety. This might be harder to do if the manufacturer is based overseas or has no track record of exporting to a certain country.
This is particularly important for those who sell OTC medicine. Customers who buy OTC products are not doing so due to the advice or instructions of a doctor. Some customers are able to ask for a specific medication, but others simply arrive at the pharmacy or even the supermarket and ask sales staff for their opinion on the symptoms that they describe. Supplying the right medication may sometimes be more a matter of a very effective non-specific tablet than appropriate medical knowledge or experience.
What exacerbates the absence of a doctor in the OTC process is the lack of education of some patients. They do not understand the chemical action of the medicine or why it is necessary for their condition. They cannot make sense of the package insert either. If they have no prescription, they therefore rely entirely on the dispensing person's opinion. The responsibility of making sure that medicine is appropriate and safe to use then devolves onto the wholesaler.
OTC medicine is used by people who are trying to eliminate the cost of visiting a doctor. The market offering in the OTC sector is determined largely by its wholesalers, via their purchasing and importation objectives. Patients require them to source effective medicine at the lowest cost.
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