Retail Pharmacy + wholesaler permit

[Doctor M]

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How about this for a venture: A pharmacy that is doing well + opening a wholesaler center. Getting a state wholesaler permit + a DEA wholesaler permit. And I dont mean a permit to wholesale to doctors, i mean a permit to be able to distribute to other pharmacies, including our own. Discuss...

 

[pharmschooler]

How about this for a venture: A pharmacy that is doing well + opening a wholesaler center. Getting a state wholesaler permit + a DEA wholesaler permit. And I dont mean a permit to wholesale to doctors, i mean a permit to be able to distribute to other pharmacies, including our own. Discuss...

I've actually wondered how one goes about becoming a wholesaler myself. It seems it wouldn't have to be tied to a pharmacy...

 

[Sparda29]

Interesting. Cut out the middle man, buy direct from the manufacturer.

 

[CUninja]

How about this for a venture: A pharmacy that is doing well + opening a wholesaler center. Getting a state wholesaler permit + a DEA wholesaler permit. And I dont mean a permit to wholesale to doctors, i mean a permit to be able to distribute to other pharmacies, including our own. Discuss...

Why not? It would depend on how much the wholesaler permits run, how much or a profit you would expect to make from the business (before the cost of the permits) and how much up-front capital it would take vs. what the pharmacy/pharmacy owner has.

How exactly would you have pharmacies order items though? Would Mckesson (or whoever else) sell their software to you - do they have any financial/contractual incentives not to in any given area?

 

[CUninja]

I've actually wondered how one goes about becoming a wholesaler myself. It seems it wouldn't have to be tied to a pharmacy...

But by tying it to the pharmacy, you are able to lower the cost of medications to your pharmacy (if you want), ensuring either a greater profit in the wholesaling business or the pharmacy, depending on where you set your prices (somewhere between what you would charge other pharmacies and the cost you get it for.)

 

[WVUPharm2007]

I have no idea how you would compete with Cardinal and McKesson. Independents compete well today due to having an equal copay payment field vs the major retailers. The major distributors have miniscule margins and operate with massive volume. I can't see it being that viable.

 

[Doctor M]

I have no idea how you would compete with Cardinal and McKesson. Independents compete well today due to having an equal copay payment field vs the major retailers. The major distributors have miniscule margins and operate with massive volume. I can't see it being that viable.

thats what we all say about opening up independents. 🙂

 

[Doctor M]

Why not? It would depend on how much the wholesaler permits run, how much or a profit you would expect to make from the business (before the cost of the permits) and how much up-front capital it would take vs. what the pharmacy/pharmacy owner has.

How exactly would you have pharmacies order items though? Would Mckesson (or whoever else) sell their software to you - do they have any financial/contractual incentives not to in any given area?

Wholesaler permit-$800 fee from the board

DEA permit - $1147 per year

 

[Old Timer]

The regulatory costs will drive you insane. It's cost money to be a primary wholesaler and the secondary market is just about out of business. The tracking required is out of control due to all of the counterfeit drugs in the market place.

 

[Doctor M]

Why not? It would depend on how much the wholesaler permits run, how much or a profit you would expect to make from the business (before the cost of the permits) and how much up-front capital it would take vs. what the pharmacy/pharmacy owner has.

How exactly would you have pharmacies order items though? Would Mckesson (or whoever else) sell their software to you - do they have any financial/contractual incentives not to in any given area?

im looking to pick a generic manufacturer with a large number of products, buy them in bulk, and sell them directly to myself. Little by little we can start selling to other pharmacies, that is once we know how the business operates. If it doesnt work, we are out $2000. The medications we purchase will be generics we use a lot of, an in bulk; so im sure the meds will be used. Buy hey, not all wholesalers started off huge 😀

 

[Doctor M]

The regulatory costs will drive you insane. It's cost money to be a primary wholesaler and the secondary market is just about out of business. The tracking required is out of control due to all of the counterfeit drugs in the market place.

Im not looking to be a primary wholesaler. im looking to drive my cost of goods down on anything i can. None of us really know how this business works. Im willing to spend money and time to see what will happen. If we fail miserably, so be it. I guess we dont know until we try.

 

[WVUPharm2007]

thats what we all say about opening up independents. 🙂

Competing against Cardinal is like opening up an online store to compete against Amazon. They get bulk discounts you couldn't dream about, they have distribution channels you couldn't dream about, they have all of the regs worked out thanks to having dozens of lawyers on retainer...I just don't see it being viable. Good look to you if you want to enter such a venture.

Opening an independent is much MUCH easier because you and CVS have to sell the drugs at the same copay. They can't undercut you.

 

[Doctor M]

Competing against Cardinal is like opening up an online store to compete against Amazon. They get bulk discounts you couldn't dream about, they have distribution channels you couldn't dream about, they have all of the regs worked out thanks to having dozens of lawyers on retainer...I just don't see it being viable. Good look to you if you want to enter such a venture.

Opening an independent is much MUCH easier because you and CVS have to sell the drugs at the same copay. They can't undercut you.

Thanks for the warm good luck...Im just saying nothing ventured nothing gained.

 

[WVUPharm2007]

Thanks for the warm good luck...Im just saying nothing ventured nothing gained.

Nothing ventured is nothing lost, either.

 

[PharmDstudent]

How about this for a venture: A pharmacy that is doing well + opening a wholesaler center. Getting a state wholesaler permit + a DEA wholesaler permit. And I dont mean a permit to wholesale to doctors, i mean a permit to be able to distribute to other pharmacies, including our own. Discuss...

The only thing that might be worthwhile is getting into the shortages business. Sometimes you get lucky and can order items that have been hard to get, like generic Adderall 20mg, but your tech would have to stalk the manufacturers like crazy! Then you could sell those items to your pharmacy...

 

[Doctor M]

Nothing ventured is nothing lost, either.

That is the main difference between you and I. To each their own i guess.

 

[Ackj]

I think a lot of the discounts would be due to bulk quantities. I don't think Mylan, Teva, etc would bother selling to somebody( at least not at a great price) that wasn't buying 1000s of bottles. If you're only buying what you're going to use, I don't think you'll get that bulk rate.

 

[Hpower12]

That is the main difference between you and I. To each their own i guess.

do I know you? What are the odds I know someone wanting to do the same thing in Fl?

 

[Old Timer]

I don't want to rain on your parade. The last independent I worked for had a wholesale license. He was forced our of business by the increased regulations. You have to be able to account for each bottle, where it was sold and when, in the event of a recall. You have to have impeccable records that show the chain of custody. The cost of doing this will outweigh any advantages. Investigate carefully before you plunk down the money.

 

[Doctor M]

I don't want to rain on your parade. The last independent I worked for had a wholesale license. He was forced our of business by the increased regulations. You have to be able to account for each bottle, where it was sold and when, in the event of a recall. You have to have impeccable records that show the chain of custody. The cost of doing this will outweigh any advantages. Investigate carefully before you plunk down the money.

you're not raining on my parade. this is why i posted this, to discuss. This is merely an idea, an i post here to look for all avenues of ideas, the pros and cons. The decision to move forward is based on two of us, not just myself.

 

[Doctor M]

do I know you? What are the odds I know someone wanting to do the same thing in Fl?

i dont know, do you know me?

 

[WVUPharm2007]

That is the main difference between you and I. To each their own i guess.

I mean, I could go out and spend $5000 on lottery tickets because I *could* win $250,000 dollars...but I know the odds are against me. There is a difference between taking a calculated risk and taking a shot in the dark.

 

[Hpower12]

well, if I don't know you then I know some others in Fl interested in this. I am interested as well. I want to know how many pharmacies you would need to operate a wholesaler effectively. Like when buying from a manufacturer, are there minimums? As long as you can buy some meds cheaper through your own wholesaler than through Mckesson, Cardinal etc it is worth it right?