Global Pharmacy Benefit Management Market to Grow at 5.2% During 2024-2032, Fueled by Rising Pharmaceutical Expenditure

According to the latest report by IMARC Group, titled “­­Pharmacy Benefit Management Market Report by Service (Specialty Pharmacy Services, Drug Formulary Management, Retail Pharmacy Services, Benefit Plan Design and Consultation, Disease Management Services, and Others), Business Model (Health Insurance Management, Standalone PBMs, Retail Pharmacy), End Use (Federal, Commercial), and Region 2024-2032,” the global pharmacy benefit management market is projected to grow at a CAGR of 5.2% during 2024-2032. Pharmacy Benefit Management (PBM) refers to an organization of prescription drug programs that administer, monitor, and handle issues related to drug development, formulas, contracts, and claims and provides prescription drug benefits. It is a third-party administrator that acts as an intermediary between insurance companies, drug manufacturers, and pharmacies, providing employers with medical services and prescription medications at reduced costs. The cost reduction is achieved through negotiating with drug manufacturers for discounts on drug prices and reimbursements from collaborating with pharmacies, processing and compensating prescription drug claims, and working with self-insured companies and government programs. Apart from this, PBM companies conduct generic drug substitution and participate in drug formulary development and management. As a result, they are extensively used for numerous services in specialty pharmacies, retail pharmacies, and drug formularies or disease management, amongst others.

Global Pharmacy Benefit Management Market Trends:

The widespread prevalence of chronic diseases, such as cardiovascular disorders (CVDs) and lung infections, is primarily driving the market growth. Such occurrences have fueled the demand for expensive branded medications across the globe, resulting in a significant increase in pharmaceutical spending, creating a need for cost management of prescription drugs. Besides this, drug price inflations are propelling the demand for PBM among health insurance providers, further presenting remunerative opportunities for the market’s growth. In addition to this, the easy availability of similar drugs in the market with minimal differences in their active pharmaceutical ingredient (API) has heightened the price sensitivity of these drugs, which is contributing to the market growth. Moreover, the integration of machine learning (ML) and artificial intelligence (AI) technologies to improve workflow by streamlining the supply chain, achieving faster order delivery, and catering to many insurance and retail pharmacy chains within a limited time is aiding in market expansion. Furthermore, the shifting preference for PBM systems for better expertise and connections with pharmaceutical companies, establishing drug contracts, and gaining access to medicines across various retail pharmacy networks are positively influencing the market growth.

Market Summary:

• Based on the service, the market is categorized into specialty pharmacy services, drug formulary management, retail pharmacy services, benefit plan design and consultation, disease management services, and others.
• On the basis of the business model, the market is segregated into health insurance management, standalone PBMs, and retail pharmacy.
• Based on the end use, the market has been bifurcated into federal and commercial.
• Region-wise, the market has been segmented into North America (the United States and Canada), Europe (Germany, France, the United Kingdom, Italy, Spain, and others), Asia-Pacific (China, Japan, India, Australia, and others), Latin America (Brazil, Mexico, and others), and Middle East and Africa (Saudi Arabia, South Africa, United Arab Emirates, and Others).
• The competitive landscape of the market has also been examined, with some of the key players being Aetna, Inc., Centene Corporation, Cigna Corporation, CVS Health Corporation, Express Scripts Holding Company, Magellan Health, Inc., Medimpact Healthcare Systems, Inc., Optumrx, Inc., Prime Therapeutics LLC, ProCare Rx, and SS&c Technologies, Inc.
   

Report Coverage:

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