NORTH AMERICA E-PHARMACY MARKET ANALYSIS

The North America E-pharmacy market is estimated to be valued at US$ 50.9 Bn in 2023 and is expected to exhibit a CAGR of 18.3%during the forecast period (2023-2030).

Analysts’ Views on North America E-pharmacy Market:

The North America E-pharmacy market is rising Substantially as a result of the rise in internet consumers, increased access to web-based and online services, and the rising implementation of e-prescriptions in hospitals and other healthcare services. E-prescription is the electronic prescribing technology that allows healthcare professionals to go paperless by sending prescriptions in digital format instead of handwritten prescriptions. Doctors now prefer e-prescriptions to let patients quickly access medicine with the help of e-prescriptions.

Figure 1. North America E-pharmacy Market Share (%),By Product Type, 2023

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North America E-pharmacy Market – Driver

Increasing adoption of e-pharmacy services by a large population group in North America

Increasing adoption of e-pharmacy services by a large population group in North America, pharmaceutical companies are focusing on launching e-pharmacy or digital pharmacy services in the region. For instance, in March 2020, Digital Health and supply chain entrepreneurs launched Genius Rx, a full-service, fully automated digital pharmacy. On June 25, 2020, Medicure Inc. is a value-based pharmaceutical company committed to the development and commercialization of innovative and affordable therapeutics for the U.S. market, launched a direct-to-patient online pharmacy program for the distribution of ZYPITAMAG in the U.S. This program help the company offer services at reduced costs, including no retail pharmacy filling fees, and increase the availability of products.

E-prescription is the electronic prescribing technology

E-prescription is electronic prescribing technology that allows healthcare professionals to go paperless by sending prescriptions in digital format instead of handwritten prescriptions. Doctors now prefer e-prescriptions to let patients quickly access medicine with the help of e-prescriptions, which is expected to aid in the growth of the market. For instance, in March 2021, Co-op Health, a digital prescription service that allows individuals to obtain medication via an app or the web for pickup at a nearby pharmacy or home delivery, was acquired by  Phoenix Contact provides innovative products and solutions for all aspects of connection technology, electronics, and automation. Discover them here. The app has shown a sharp increase in demand, and Phoenix US uses its network of Numark and Rowlands to meet that need. Such acquisitions in the e-pharmacy segment are expected to drive market growth due to the rise in the adoption and expansion of services.

Figure 2. North America E-pharmacy Market Share (%), by Country, 2023

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North America E-pharmacy Market – Impact of Coronavirus (COVID-19) Pandemic

Since the COVID-19 virus outbreak in December 2019, the disease has spread to over 100 countries across the globe, and the World Health Organization declared it a public health emergency on January 30, 2020.

COVID-19 affected the economy in three main ways: by directly affecting the production and demand of drugs, by creating disruptions in distribution channels, and through its financial impact on firms and financial markets. Due to nationwide lockdowns, several countries, such as China, India, Saudi Arabia, the U.A.E., Egypt, and others, are facing problems with the transportation of people from one place to another.

However, the COVID-19 pandemic had a positive impact on the North America E-pharmacy market. For instance, in November 2021, Flipkart launched Flipkart Health+ with the acquisition of a majority share in Sastasundar Marketplace Limited. Flipkart entered this market when there was a vast need for services that provided people with necessary medications during the COVID-19 pandemic. As a result of their concern about contracting the virus, more and more consumers were making online purchases instead of going to physical businesses.

North America E-pharmacy Market Segmentation:

The North America E-pharmacy market report is segmented into product type and country,

By Product Type, the market is segmented into Prescription (Rx) and Over-the-counter. Out of which, the Prescription (Rx) segment is expected to hold a dominant position in the North America E-pharmacy market during the forecast period, and this is attributed to the Schedule-H Drugs cannot be sold over the counter without the prescription of a qualified doctor.

North America E-pharmacy Market: Key Developments

In September 2020, UnitedHealth Group Incorporated, a multinational healthcare and insurance company based in the U.S., purchased startup DivvyDose, a key player in the ePharmacy industry. DivvyDose, a competitor to Amazon-owned PillPack, has been bought by UnitedHealth Group. Thus, the ePharmacy segment has also gained significant growth during the post-lockdown period, as governments encouraged the delivery of medicines through e-commerce platforms as an essential service.

In June 2021, PharmEasy, an  online pharmacy and medical store offering pharmaceutical and healthcare products, Purchased a controlling share in Thyrocare Technologies, a diagnostics company. This alliance will provide huge potential and synergies for the whole Indian healthcare ecosystem of customers, physicians, and suppliers.

In March 2022, Walgreens and Labcorp, a global life sciences company, announced the availability of Pixel by Labcorp COVID-19 at-home collection kit, a PCR test available through Labcorp OnDemand, at no cost to individuals who meet clinical guidelines. Walgreens’ addition of the kits, which are provided in collaboration with the U.S. Department of Health and Human Services (HHS), enable more communities to access reliable, convenient testing services when, where, and how they need them.

In January 2022,  Mark Cuban Cost Plus Drug Company, doing business as Cost Plus Drugs, is a public benefit corporation with its main headquarters located in Dallas, Texas, started an online pharmacy offering affordable generic medications under the name "Mark Cuban Cost Plus Drug Company" (MCCPDC), a brand-new online pharmacy. Although the company does not accept insurance, the website is now selling more than 100 medications, many of which are priced below what a person would have to pay even with insurance. Such initiatives to provide cost-effective medication are further expected to drive market growth in this region.

North America E-pharmacy Market: Key Trends

Increasing patent expiration rates result in companies switching from Rx to OTC as a counter strategy

The increasing patent expiration rates result in companies switching from Rx to OTC as a counter strategy. For instnace, in July 2022, the US FDA received an application from HRA Pharma, SA develops and commercializes drugs, devices, and services in the therapeutic areas of reproductive health and endocrine diseases, for the first OTC birth control pill sold in the U.S. The company had submitted an Rx-to-OTC transition application for Opill, a daily birth control pill containing only progestin (also referred to as a mini pill or non-estrogen pill). This is expected to provide access to the mentioned drugs. Also, in the current COVID-19 pandemic, the e-pharmacy market, particularly for OTC drugs, witnessed significant growth as consumers were reluctant to visit clinics for minor ailments for fear of COVID-19.

North America E-pharmacy Market: Restraint

Occurrences of substance abuse

Occurrences of substance abuse are expected to hinder growth of the North America e-pharmacy market. Easy availability of controlled prescription drugs such as stimulants, anxiolytics, narcotic painkillers, and sedative hypnotics through online retail platforms can result in higher instances of substance abuse, which in turn can be a major public health concern. For instance, according to an article published in the National Journal of Community Medicine in May 2022, the U.S. FDA and the US Drug Enforcement Administration (DEA) recently issued joint warning letters to the operators of two websites illegally selling amphetamine drug products marketed as Adderall, a Schedule II stimulant, without a prescription.

Key players focusing on safety of medicine.

North America E-pharmacy Market - Key Players

Major players operating in the North America E-pharmacy market include CVS Caremark, Zur Rose Group AG, PlanetRX.com Inc., Walgreen Company, Familymeds, Inc, Medisave, The Kroger Co., Cigna, Optum Rx, Inc, Giant Eagle, The Kroger Co., Walmart, Inc., Express Scripts Holding Company, Optum Rx, Inc., Rowlands Pharmacy, Apollo Pharmacy and Netmeds

*Definition: E-pharmacies can effectively address a number of customers' issues such as comprehensive information on drugs or alternatives for the prescription drug, easy access for the medicines that are otherwise hard to find, medicine records, and others. With the help of e-pharmacies, consumers can order the drugs conveniently from their smartphone or computer.