DermSource, an Rx Drug Industry Disruptor, Helps Save More Than 500 Mom & Pop Pharmacies
NEW YORK--(BUSINESS WIRE)--Nov 26, 2019--
DermSource, a company founded by an ex-pharmacist to help his former colleagues fight back against abusive middlemen and greedy suppliers, today announced it has helped save 543 independent pharmacies since its launch one year ago. The company will surpass $10 million in gross sales by the end of 2019.
The rapid growth prompted the Long Island-based DermSource to expand its operations and move to a new office after just nine months upon launching. This move helped accommodate the growing business, employees and clientele. DermSource supplies affordable dermatology products to pharmacies in 24 states, including, New York, Kentucky, Michigan, New Jersey, Ohio, Pennsylvania and Virginia, which have been at the forefront of the effort to fix the country’s broken prescription drug distribution system.
“We are proud to have reached the one-year milestone having helped save more than 500 mom & pop pharmacies from falling victim to the broken prescription drug distribution system that has forced thousands of pharmacies across the country to reduce hours, lay off employees or close their doors,” said DermSource founder and CEO Yuriy Davydov. “Our core values of transparency and fair pricing not only have allowed DermSource to succeed, but also support the ability of neighborhood pharmacies to stay in business and provide critical healthcare services to their patients. Where reimbursements are declining, DermSource reduces acquisition costs for its members while putting the purchase power back into their hands.”
The dermatology market is currently valued at $14 billion annually, allowing DermSource ample room to operate on a substantial growth path while helping neighborhood pharmacies continue to serve their communities.
The healthcare startup was founded by Davydov, a 31-year-old serial entrepreneur and licensed pharmacist who sold his own pharmacy in 2015 due to declining reimbursements and abusive practices from the middlemen known as pharmacy benefit managers (PBMs). Searching for a solution, Davydov launched DermSource, a group purchasing organization (GPO) serving pharmacies with an online purchasing platform for discounted prescription dermatology products at prices 30-50 percent below its competitors.
“As a former independent pharmacy owner, I see firsthand the imbalance in today’s pricing model. Pharmacy benefit managers and wholesalers are taking the bulk of the profits while the independent pharmacies that are actually providing a healthcare service, are constantly getting squeezed with lower reimbursements and higher acquisition costs,” said Greg Savino, Founder and CEO of Baybridge Pharmacy. “DermSource is aimed at reducing acquisition costs for the pharmacies and these lower costs are helping make our business profitable again. Without DermSource, I think a lot of independent pharmacies are going to continue to reduce hours, let employees go or go out of business entirely.”
DermSource is a dermatology GPO serving pharmacies across the nation with an online purchasing platform for discounted dermatology products. Working with a VAWD accredited wholesaler and distributor, CityMedRx, DermSource negotiates on behalf of the pharmacy for competitive prices and availability of sought-after dermatology products. With the guarantee of a fair and transparent deal, DermSource retains a profit margin of no more than 3%. As a progressive organization DermSource is armed with a mission to help improve the healthcare industry and recognizes that helping independent pharmacies helps the consumer receive treatment, delivering improved healthcare outcomes. Membership is free to pharmacies in all 50 states. Visit www.DermSource.com#TruthinPricing
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KEYWORD: NEW YORK UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: HOME GOODS BIOTECHNOLOGY PHARMACEUTICAL HEALTH SUPERMARKET CONSUMER OTHER CONSUMER RETAIL
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