Now, an Expanded Purchase Perspective from IMS America

* Dispensing of Rx and OTC
drugs through Federal
Facilities, HMOs, Clinics,
and Nursing Homes reached
50% of the Private and CCS
Hospital share in 1992.
*Total distribution through
these channels is forecast to
experience double-digit
growth by the year 2010:
Sales Through Non-traditional Channels
$ (Billions)
30

-M.>I'Lu i 1 1 ' i.i
Though the future of the U.S.
healthcare environment is
obscure, some trends are clearly
emerging:
Sdownward price pressure
growth of managed care
expanding self-medication
shorter hospital stays
reliance on generic drugs
The same patterns that appear
in the broader healthcare environment are mirrored in the
Rx and OTC pharmaceutical
markets, in both retail and
provider arenas.

* Rx-to-OTC switches (70
products may switch in the
next few years) are forecast
to boost OTC sales from
$19 billion to $38 billion by
2010. Currently, sales of
OTCs are growing faster
than Rx drugs:
Over-the-Counter Dollar Sales
$ (Billions) 38
40-3
30
20 19
10
1984 1992 2010
(projected)
* The importance of generic
drugs, already a significant
factor in the pharmaceutical
industry, will grow in the
future. By 1996, patent protection will have expired on
28 of the top 30 Rx drugs.
That will leave 30% of total
1993 Rx dollars open to
generic encroachment.
These issues and others will
play a dramatic role in your
company's future growth. You
need a system that allows you
to manage emerging trends
quickly and accurately.

20
10
0

1992

2010
(projected)

SMore than two-thirds of the
drug-specification decisions
being made today are under
managed-care formularies.
Prescription drug volume in
Foodstores, Mail Order and
Chains is now surpassing that
in Independent Pharmacies.