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Pharmacy Podcast Episode 38 Pharmacy Healthcare Solutions Inc., Consultant Michael Bunn

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Pharmacy Healthcare Solutions Inc. (PHSI)

Holding Gains
·         PHSI evaluated the financial impact of lowering inventory and found that lower is not always better. 
·         Economic downturn has resulted in lower cost of money (i.e. low interest rate and lower returns on investments)
·         Reduced number of small molecule blockbusters from brand manufacturers and the current generic patent cliff has increased the brand inflation rate. 
·         With interest or returns on investments at 3-5% and brand price inflation rates of around 9%, there is financial benefit to holding brand inventory on your shelf. 
·         Low opportunity cost and high price inflation
·         We worked through some typical pharmacy numbers.  All of these numbers are available on our PHSI website which listeners can access at http://www.PHSIRx.com/blog
 

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