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Global Pharmacy Benefit Management Market 2017-2021

Global Pharmacy Benefit Management Market 2017-2021

About Pharmacy Benefit Management

PBMs are responsible for processing prescriptions and claims for people or corporations that wish to provide insurance to their employees. The primary role of a PBM is to keep drug prices in control. This is achieved by negotiating a fair price, which consumers can afford, and is mutually agreed upon by the pharmacy, the manufacturer, and the insurance company. The global pharmacy benefit management market is a key segment of the global healthcare market. PBMs mediate between the key stakeholders in the healthcare system. As a concept, pharmacy benefit management originated in the US and has been adopted across the globe.

Technavio’s analysts forecast the global pharmacy benefit management market to grow at a CAGR of 6.14% during the period 2017-2021.

Covered in this report

The report covers the present scenario and the growth prospects of the global pharmacy benefit management market for 2017-2021. The report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.

The market is divided into the following segments based on geography:

  • Americas
  • APAC
  • EMEA
Technavio's report, Global Pharmacy Benefit Management Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

Key vendors
  • Aetna
  • Cigna
  • CVS Health
  • Express Scripts
  • UnitedHealth
Other prominent vendors
  • Anthem
  • Centene
  • China Jo-Jo Drugstore
  • DST Systems
  • Humana
  • Kaiser Permanente
  • Magellan Health
  • McKesson
  • MedImpact
  • OmedaRx
  • Prime Rx Pharmacy
  • Prime Therapeutics
  • Rite Aid
  • RxSolutions
  • Vidalink
  • Walgreens Boots Alliance
Market driver
  • Increasing global healthcare expenditure
  • For a full, detailed list, view our report
Market challenge
  • Unclear revenue models
  • For a full, detailed list, view our report
Market trend
  • Disruption of key M&A
  • For a full, detailed list, view our report
Key questions answered in this report
  • What will the market size be in 2021 and what will the growth rate be?
  • What are the key market trends?
  • What is driving this market?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?


Technavio Announces the Publication of its Research Report – Global Pharmacy Benefit Management Market 2017-2021

Technavio recognizes the following companies as the key players in the global pharmacy benefit management market: Aetna, Cigna, CVS Health, Express Scripts, and UnitedHealth.

Other Prominent Vendors in the market are: Anthem, Centene, China Jo-Jo Drugstore, DST Systems, Humana, Kaiser Permanente, Magellan Health, McKesson, MedImpact, OmedaRx, Prime Rx Pharmacy, Prime Therapeutics, Rite Aid, RxSolutions, Vidalink, and Walgreens Boots Alliance.

Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is disruption of key M&A. The market is heavily reliant on key M&A as they can determine whether a new combined entity will emerge and threaten to occupy the larger market share. Key mergers between two mid-sized companies could also propel them to form a combined entity, which would command a greater market share.”

According to the report, one driver in the market is increasing global healthcare expenditure. The growing prevalence of generic and chronic diseases and low co-payment or co-insurance costs have resulted in the increase in healthcare expenditures across the world. Healthcare expenditure is the measure of the overall amount spent on healthcare products and services. This also includes personal healthcare such as rehabilitative care, long-term care, and ancillary services. Healthcare is financed through a mix of financing arrangements including government spending and compulsory health insurance as well as voluntary health insurance and private funds such as households’ out-of-pocket payments and private corporations.

Further, the report states that one challenge in the market is unclear revenue models. Pharmacy benefit management companies have faced criticism with regards to their revenue models and how they disclose limited information about their revenue sources. The lack of a global regulatory body has been cited in federal courts and senate meetings in the US as the root cause of unfair business practices being prevalent in the market. It has been alleged that the market lacks three essential elements that define a competitive market. They are transparency, choice, and lack of conflicts of interest. These aspects individually or in combination have prevailed in the market and have given rise to PBMs engaging in anticompetitive, deceptive, and fraudulent conduct.

Companies Mentioned

Aetna, Cigna, CVS Health, Express Scripts, UnitedHealth, Anthem, Centene, China Jo-Jo Drugstore, DST Systems, Humana, Kaiser Permanente, Magellan Health, McKesson, MedImpact, OmedaRx, Prime Rx Pharmacy, Prime Therapeutics, Rite Aid, RxSolutions, Vidalink, and Walgreens Boots Alliance.

  • Executive summary
  • Scope of the report
  • Research methodology
  • Market landscape
    • Market ecosystem
      • Table Related market
      • Table Role of PBMs
    • Market characteristics
      • Table Market characteristics
    • Market segmentation analysis
      • Table Market segments
  • Market sizing
    • Market definition
      • Table Market definition: Inclusions and exclusions checklist
    • Market sizing 2016
      • Table Market size 2016
      • Table Validation techniques employed for market sizing 2016
    • Market size and forecast
      • Table Global pharmacy benefit management market 2016-2021 ($ billions)
      • Table Global pharmacy benefit management market: Year-over-year growth 2017-2021 (%)
  • Five forces analysis
    • Table Five forces analysis 2016
    • Table Five forces analysis 2021
    • Bargaining power of buyers
      • Table Bargaining power of buyers
    • Bargaining power of suppliers
      • Table Bargaining power of suppliers
    • Threat of new entrants
      • Table Threat of new entrants
    • Threat of substitutes
      • Table Threat of substitutes
    • Threat of rivalry
      • Table Threat of rivalry
    • Market condition
      • Table Market condition - Five forces 2016
      • Table Market condition: Five forces 2021
  • Customer landscape
    • Table Customer landscape
  • Segmentation by type of service
    • Overview
      • Table Global pharmacy benefit management market: Segmentation by type of service 2016- 2021 (% share)
    • Comparison by type of service
      • Table Comparison by type of service
    • Retail/mail-order pharmacy
      • Table Global pharmacy benefit management market by retail/mail-order pharmacy 2016-2021 ($ millions)
      • Table Global pharmacy benefit management market by retail/mail-order pharmacy: Year-overyear growth 2017-2021 (%)
    • Specialty pharmacy
      • Table Global pharmacy benefit management market by specialty pharmacy 2016-2021 ($ millions)
      • Table Global pharmacy benefit management market by specialty pharmacy: Year-over-year growth 2017-2021 (%)
    • Preferred network pharmacy
      • Table Global pharmacy benefit management market by preferred network pharmacy 2016-2021 ($ millions)
      • Table Global pharmacy benefit management market by preferred network pharmacy: Yearover- year growth 2017-2021 (%)
    • Other
      • Table Global pharmacy benefit management market by other 2016-2021 ($ millions)
      • Table Global pharmacy benefit management market by other: Year-over-year growth 2017-2021 (%)
    • Market opportunity by type of service
      • Table Market opportunity by type of service
  • Regional landscape
    • Overview
      • Table Global pharmacy benefit management market: Segmentation by geography 2016-2021 (% share)
    • Regional comparison
      • Table Regional comparison
    • Americas
      • Table Pharmacy benefit management market in Americas 2016-2021 ($ billions)
      • Table Pharmacy benefit management market in Americas: Year-over-year growth 2017-2021 (%)
    • EMEA
      • Table Pharmacy benefit management market in EMEA 2016-2021 ($ billions)
      • Table Pharmacy benefit management market in EMEA: Year-over-year growth 2017-2021 (%)
    • APAC
      • Table Pharmacy benefit management market in APAC 2016-2021 ($ billions)
      • Table Pharmacy benefit management market in APAC: Year-over-year growth 2017-2021 (%)
    • Key leading countries
      • Table Key leading countries
    • Market opportunity
  • Decision framework
  • Drivers and challenges
    • Market drivers
      • Table Growth of global geriatric population 2010-2016 (%)
      • Table List of products and services offered by Express Scripts exclusively for geriatric population
      • Table Global healthcare expenditure per capita 2008-2014 (in US$)
      • Table Key strategies employed by vendors to enhance adoption of specialty drugs
    • Market challenges
  • Market trends
    • Shift toward multi-tier prescription drug formulary
      • Table Percentage distribution of various types of formularies in 2008 and 2014
    • Disruption of key M&A
      • Table Proposed key mergers in pharmacy benefit management market and events that led to their termination
    • Growing focus on promotional activities
      • Table Digital reach of key vendors
  • Vendor landscape
    • Competitive scenario
      • Table Key growth strategies employed by leading vendors
  • Vendor analysis
    • Vendors covered
    • Vendor classification
      • Table Vendor classification
    • Market positioning of vendors
      • Table Market positioning of vendors
    • Aetna
      • Table Aetna: Overview
      • Table Aetna: Business segments
      • Table Aetna: Organizational developments
      • Table Aetna: Geographical focus
      • Table Aetna: Segment focus
      • Table Aetna: Key offerings
    • Cigna
      • Table Cigna: Overview
      • Table Cigna: Business segments
      • Table Cigna: Organizational developments
      • Table Cigna: Geographical focus
      • Table Cigna: Segment focus
      • Table Cigna: Key offerings
    • CVS Health
      • Table CVS Health overview
      • Table CVS Health: Business segments
      • Table CVS Health: Organizational developments
      • Table CVS Health: Geographical focus
      • Table CVS Health: Segment focus
      • Table CVS Health: Key offerings
    • Express Scripts
      • Table Express Scripts: Overview
      • Table Express Scripts: Business segments
      • Table Express Scripts: Organizational developments
      • Table Express Scripts: Geographical focus
      • Table Express Scripts: Segment focus
      • Table Express Scripts: Key offerings
    • UnitedHealth
      • Table UnitedHealth: Overview
      • Table UnitedHealth: Business segments
      • Table UnitedHealth: Organizational developments
      • Table UnitedHealth: Geographical focus
      • Table UnitedHealth: Segment focus
      • Table UnitedHealth: Key offerings
    • Other prominent vendors
  • Appendix
    • List of abbreviations
  • Explore Technavio

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