Vaccines Profit Trail
Vaccines are big business, not just for the pharmaceutical Industry. It adds to the bottom line of insurance companies, doctors and retail businesses, this is taken from an analysis of this flu vaccine season by life science market research publisher Kalorama Information. It is estimated there is a multi-billion dollar market from ancillary items sold because of the vaccines. This is coming from office copays, retail clinic fees, and some retail sales with an indirect link to the vaccines. The pharmaceutical industry has made some very important partners in the field.
“Among the reasons vaccines are a popular play now in Pharma is that makers can count on many partners in the distribution process,” said Bruce Carlson, publisher of Kalorama Information. “The flu vaccine had demonstrated that retailers, providers and insurance companies all have incentives to piggyback off of the focus on vaccine products, and we expect that to be the same with new products.”
This is America where everything is an opportunity. The focus is on revenues, and is why when you talk about healthcare, you are talking big business. Profits can cloud judgement, and in this case we are talking about turning a blind eye to public health. The realization that retail drugstores, and walk in clinics may be clueless about what they are promoting. Just from the seasonal flu vaccine ancillary services profits will soar.
Drugstores set up flu clinics, customers who come through the doors for the flu shot will shop while there. Walgreen’s one of the largest drugstore chains has given 2.5 million seasonal flu shots by the end of September. Target Pharmacy, Rite Aid, CVS, and some other stores with pharmacies earned about $200 million from the shots, and $250 million in sales from other store products purchased at the time. This is from Kalorama’s estimates, and is considered on the conservative side.
The question is one of propriety, it looks like it is safe to go to the a big chain pharmacy to become a pin cushion. These people are somewhat trained and considered in a health related field. However, the safety level may be somewhat better than going to a burger joint for it. However, some forethought should be given before these shots are given to anyone with cash, credit cards, or health insurance.
“The more places flu shots are available, the more likely people are to get one,” said Dr. Jane R. Zucker, assistant health commissioner for the Bureau of Immunization. “Pharmacies are a natural place to reach those at high risk of hospitalization and death from the disease. People with diabetes and asthma regularly see their pharmacists to refill their prescriptions. If vaccinations were available at the same counter, many more would get them.”
“Doctor visits were down as a result of the recession, according to several surveys, and in general Americans do not follow the most advisable schedule of doctor visits, so if anything it is making up for unrealized revenue,” said Carlson. “It’s fair to say that anything that gets a patient into a doctor’s office — where there could be consultation about weight, blood sugar or other issues — can be viewed as a good thing.”
The one thing the public can count on, the trend to more and more vaccines is not going away. If anything as long as doctors view it as good, and drug chains profit, any questions about effectiveness and safety will be swept under the rug. Following the vaccines profit trail behind the scene shows that the success of the program is not an anomaly. The vaccine market is here to stay, the real issue is will the public benefit from this trend.
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