Drugstore industry

Article Abstract:

There has been considerable merger activity in the drugstore industry in the 1990s, driven by the belief that profits in the managed care market are best served by large size, and this trend is not ended. However, profit margins for pharmacies are expected to be lower in spite of higher grosses and the 14% rise in retail drug sales in 1997 to $89 mil. Drugstore stocks are timely, nonetheless, and are expected to outperform the market in 1998.

Arbor Drugs Inc., ARBR

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Drugstore industry

Article Abstract:

The acquisition of Arbor Drugs by CVS Corp appears to the last merger of size within the drugstore industry although consolidation is expected to continue, but at a slower pace. The adoption of category management by many drugstore chains, and the changing demographic patterns in the US will be beneficial for the industry, as well. These stocks are not timely for 1998 and 1999, and investors need to focus on long-term growth.

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Drugstore industry

Article Abstract:

Consolidation within the drugstore industry has decreased in 1998, but mergers will continue as regional drugstore chains are pressured by the larger nationwide companies in the market. The demographic trends in the US population will also be beneficial for the industry through growing the retail prescription business. These stocks are timely for 1998 and for the next three to five years, as well.

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