Report predicts bright on-line pharmacy future

Though they're not for everyone, on-line pharmacies will see their sales jump sharply over the next few years. And Internet pharmacies with physical storefronts—the so-called clicks-and-mortar variety—will have an advantage over those that exist purely in cyberspace—the pure-play pharmacies. Or so concluded Schering Report XXII, the latest in a series of annual pharmacy investigations initiated and commissioned by Schering Laboratories.

The new report was based on 1,000 phone interviews with consumers, pharmacists, and physicians across the country. It found that one-third of the consumers anticipate using on-line pharmacies within the next four years. If some 125 million Americans are expected to be on the Internet in that time span, that projects to approximately 41 million on-line pharmacy customers bringing in sales of between $20 billion and $25 billion. Last year, on-line pharmacy sales of prescriptions and other health-care products hit $1.9 billion, and "only 2% of patients now order such items over the Web," according to the Schering Report.

Comparing the merits of the two major types of on-line pharmacies, the study gave the nod to the clicks-and-mortar model. Although the pure-play pharmacy has the advantage of carrying a lower overhead and is potentially more efficient, the clicks-and-mortar pharmacy "can provide better drug reimbursement through existing contracts; it has brand recognition and a greater degree of flexibility in ordering, dispensing, and providing information on-line or in person; and it has an existing base of clients and, therefore, revenue."

Whichever form on-line pharmacies take, pharmacists—generally speaking—have "a bright future" in cyberspace, continuing to fill prescriptions, to provide medication and health counseling, and to promote patient compliance, said Schering Report researchers.

However, there was some disagreement between consumers and providers on the future of the patient-pharmacist relationship in the Internet era. Most of the pharmacists and physicians interviewed—76% and 72%, respectively—think that that relationship would be further strained by on-line pharmacy, but the majority of consumers envision no effect at all in that relationship because of Internet pharmacies.

A closer look at consumers currently using on-line pharmacies for Rx and OTC purchases found that the overwhelming majority expect to continue doing so. "Ordering prescriptions on-line was judged to be easy, convenient, and fast by those who have done so—and without any loss of privacy," researchers reported. Reimbursement by health plans was also deemed "excellent or very good by 47% of buyers." There was some concern about pharmacist access, however. According to the Schering researchers, "just 35% of buyers were very satisfied with the pharmacist's availability on-line." The majority of on-line users also found that "prices were not significantly lower than those charged in community drugstores."

By Online Pharmacy