HDMA - Healthcare Distribution Management Association

09/22/2025 | Press release | Distributed by Public on 09/22/2025 10:37

HDA Factbook: Healthcare Distributors Continue To Drive Operational Efficiency In 2024

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HDA Factbook: Healthcare Distributors Continue To Drive Operational Efficiency In 2024

September 22, 2025

New data released by the HDA Research Foundation reveal that total sales through traditional pharmaceutical distributors grew by 10.4 percent in 2024, despite a challenging economic environment. As highlighted in the 96th Edition HDA Factbook, pharmaceutical distributor sales reached $862 billion (96 percent of all prescription drug sales); net margins after taxes continued to decline in 2024, slipping to 0.2 percent of revenue from 0.3 percent in 2023.

"This year's Factbook highlights how the healthcare distribution industry continues to remain nimble in an ever-changing business environment," said Perry Fri, Chief Industry Relations Officer and President, HDA Research Foundation. "Employee productivity continued to climb amid ongoing investments in automation and continued improvements in process enhancements. Through it all, distributors have narrowed their profit margins for the eleventh consecutive year in a row, proving they continue to be highly efficient."

Sales across customer types shifted noticeably in 2024. Chain drug stores increased to 40.5 percent, up from 36.4 percent in 2023; followed by hospitals, HMOs and clinics (15.9 percent), which decreased from 20.4 percent; specialty pharmacies (6.4 percent) increased from 5.2 percent the prior year; and, independent pharmacies (11.7 percent) fell from 13.1 percent in 2023.

[Link]View an executive summary of key HDA Factbook data for the 2024 operating year.

Published annually since 1929, the HDA Factbook is based on surveys collected at the corporate level of HDA traditional distributor member companies with annual sales greater than $1 billion. Secondary data from leading healthcare industry organizations complement the primary data to illustrate overall distributor demographics as well as trends in operations, information technology, market characteristics, customers and product mix, among other sections.

As reported within the new Factbook:
  • Each traditional distribution center processed an average of 4,132 orders on a typical business day, and these orders averaged 12 invoice lines and 25 units;
  • Distributors worked with an average of 1,429 manufacturers in 2024;
  • Inventory was held for 22 days on average, down from 23 days in 2023;
  • Distributors filled 89 percent of invoice lines for "raw orders," an improvement from 88 percent in 2023 and 86 percent in 2022. The primary reasons for unfilled orders were manufacturers' inability to ship (70 percent) and distributors being out of stock (30 percent);
  • Employee productivity continued to climb in 2024, with net sales per employee growing 8 percent to $29.7 million. This trend reflects continued improvements from investments in automation and process enhancements. More than half (68 percent) of companies reported using automated methods, with 50 percent of invoice lines being picked through these automated processes.



















The 96th Edition HDA Factbook: The Facts, Figures and Trends in Healthcare (2025-2026) is available as a complimentary download from HDA.org. The publication was made possible through the support of gold sponsors Apotex Corp. and Real Value Rx; silver sponsors IQVIA and R&S Northeast LLC; and bronze sponsors Ascend Laboratories, LLC and Teva Pharmaceuticals.

ABOUT THE HEALTHCARE DISTRIBUTION ALLIANCE
The Healthcare Distribution Alliance (HDA) represents primary pharmaceutical distributors - the vital link between the nation's pharmaceutical manufacturers and pharmacies, hospitals, long-term care facilities, clinics and others nationwide. Since 1876, HDA has helped members navigate regulations and innovations to get the right medicines to the right patients at the right time, safely and efficiently. The HDA Research Foundation, HDA's nonprofit charitable foundation, serves the healthcare industry by providing research and education focused on priority healthcare supply chain issues.

ABOUT THE HDA RESEARCH FOUNDATION
The HDA Research Foundation is the 501(c)(3) non-profit charitable organization of the Healthcare Distribution Alliance (HDA). The Foundation serves as the thought leader in driving research, education and discussion for all healthcare supply chain stakeholders, enabling the industry's ability to deliver efficient, safe and secure patient access to medicines and medical products. Learn more at HDA.org/Foundation.
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HDMA - Healthcare Distribution Management Association published this content on September 22, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on September 22, 2025 at 16:37 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]