Top 10 Notable Market Threats
©2025 RXinsider | RXinsider Market Intelligence Group | 2025
Disclaimer: The following is a consolidation of the most frequently
mentioned and notable market threats from the annual reports and are not
presented in any particular order.
1. Industry and Market Consolidation
Industry and market consolidation pose a significant risk to the pharmaceutical distribution, retail, and
logistics sectors. Consolidation increases market concentration among both suppliers and buyers,
reshaping competitive dynamics and potentially leading to margin pressures and weakened negotiating
positions. Companies express deep concerns about these structural shifts, which also amplify existing
competitive threats in the healthcare landscape.
CORE
THEMES
Increased bargaining
power of customers
Market concentration
among suppliers
or buyers
Loss of business to
vertically integrated
competitors
Key Risk Drivers:
• Vertical integration among large players,
reducing reliance on intermediaries
• Consolidation among PBMs and distributors,
boosting their negotiating power
• Emerging competitors leveraging digital health,
AI, and telemedicine
• Pressure to reduce drug prices and improve
value-based outcomes
• Patent expirations impacting revenues
Strategic Implications:
• Margin compression due to intensified price
competition and customer power
• Need for innovation in digital, data-driven, and
patient-centric services
• Acquisition costs for capabilities to remain
competitive