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A driving force of health care supply chain management

Pharmaceutical distributors: Powering 96% of US medicines

Since 2019, sweeping changes—from natural disasters and a pandemic—have tested pharmaceutical distribution and revealed the resilience of health care supply chain management. As the pharmaceutical supply chain evolves with advanced therapies and shifting regulations, distributors play a vital role, providing 96% of US medicine access. Their continued leadership drives innovation, regulatory compliance, and access across diverse patient care environments. Learn why distributors are now more valuable than ever. 

Examining the pharmaceutical distribution landscape

The following four takeaways highlight the increasing value, demonstrated resilience, and evolving role of distributors within the industry.

The pharmaceutical industry has undergone steady growth and expanding impact, partly due to an aging population and rise in chronic illness. Yet, medicine expenditures are only a small share of total health care spending. Still, pharmaceuticals play a valuable role in reducing overall health care costs, including future health care interventions.

The sector is defined by complex interactions among various stakeholders—some directly handling or owning products, others operating behind the scenes, and some playing both roles throughout the supply chain. Disruptions such as the COVID-19 pandemic, natural disasters, and ongoing regulatory uncertainty have driven major shifts across the industry.

Significant changes since 2019 have driven targeted investments in pharmaceutical distribution capabilities—like cold chain shipping and last-mile delivery—to enable safe and timely patient access to medicines. These advancements are key to ensuring patients receive essential medicines, even through disruption.

As the industry evolves, public scrutiny has intensified—driven by calls for lower drug prices and greater transparency in pharmaceutical supply chain financing. Legislators and regulatory bodies are addressing these concerns, introducing initiatives to enhance accountability and improve outcomes for patients.

Evolving distributor role in the pharmaceutical supply chain

Pharmaceutical distributors continue to play a central, steady role in supporting the industry’s supply chain through vital yet often low-margin core services like product transport, inventory management, and safeguarding supply chain reliability. While these foundational responsibilities remain unchanged, new developments and additional services are shaping the landscape.

Current core distribution services:

  • Supply chain efficiency
  • Inventory management
  • Financial risk management
  • Supply chain integrity

What’s shaping the landscape:

  • Increased cold chain capabilities
  • Pharmacy channel shifts
  • Evolving independent pharmacy role
  • Increasing complexity in modalities of care

Three trends impacting the future of distributors

  1. New distribution models may require distributors to adapt their service offerings to meet evolving product requirements and patient preferences.

  2. Ongoing growth of specialty pharmaceuticals and biologics may increase operational complexities and demand further investment in cold chain shipping capacity.

  3. Rapidly evolving regulations and increased public scrutiny creates uncertainty, which could present significant opportunities and/or disruption to existing business models.

Leading change in health care supply chain management


Pharmaceutical distributors are driving transformation by turning data into actionable insights, forging strategic alliances, and advancing patient access to therapies. Through innovation—including AI-driven solutions—they’re reshaping how care is delivered, setting the stage for a more connected future. Explore the full paper for in-depth examples and emerging trends.

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