Chain drugstores: Opportunities and Threats



1 affiliation

2 Faculty of Pharmact, Shahid Beheshti University of Medical Sciences


Affecting the Economy of Independent Pharmacies
One can never deny the influence of chain pharmacies as a powerful competitor over the economy of independent pharmacies. In one view, integrating independent pharmacies with low turnover into chain pharmacies can save them; On the other hand, chain pharmacies can lead to more treat for independent pharmacies life.

Patient costs
It is expected to decrease Price of non-prescription and generic drugs and give a discount on generic drugs, which lead to decrease in the consumers’ drug expenses. But in many countries this is not the case. Although there is a more bargain power in chain pharmacies, the decrease in the consumer price is dependent upon the monitoring and controlling of pharmacy profit margin.
Health Section Costs
In chain pharmacies, due to the increase in the market power and monopoly, induced demand will increased, and because of the selling more non-prescription medicines and supplements, the general health system cost is increased.
Due to the economical incentives, Chain pharmacies would not be avoidable and even though the legal limitation, they have been established illegally. As mentioned in this report, Chain pharmacies have some advantages and disadvantages and through a proper regulation and supervision, we can welcome its advantages and reduce disadvantages. Nevertheless, By keeping silent against this illegal phenomenon, society would bear disadvantages while being deprived of its possible advantages.