PALO ALTO, Calif., Sept. 15, 2004 -- The immediate need for a one-source vendor solution that is capable of addressing the management and automation needs of pharmacies has emphasized the importance of an integrated pharmacy workflow management system.

This requirement, along with the rising number of prescriptions in the United States is expected to create a swelling demand for pharmacy information systems (PIS) to effectively manage data.

New analysis from Frost & Sullivan (www.healthcare.frost.com), U.S. Pharmacy Automation Systems Market, reveals that revenue in this industry totaled $1.04 billion in 2003 and is projected to reach $1.74 billion by 2007.

If you are interested in a virtual brochure, which provides manufacturers, end-users and other industry participants an overview of the latest analysis of the U.S. Pharmacy Automation Systems Market -- then send an email to Danielle White -- Corporate Communications at dwhite@frost.com with the following information: your full name, company name, title, telephone number, fax number, and email. Upon receipt of the above information, an overview will be sent to you via e-mail.

Currently, the diversity of technologies available in the PIS market has ensured that both pharmacy automation systems (PAS) and pharmacy management software (PMS) vendors offer their own workflow management systems to pharmacies. While PAS vendors deal with in-built systems, PMS vendors provide either packages or modules.

"A strategic collaboration among the vendors in both these sectors is likely to enable pharmacists to reduce the amount of manual work involved," observes Frost & Sullivan Research Analyst Natesh Subbarajagupta Kare. "Integrating PAS and PMS will not only enable vendors to establish their competitive edge, but also help them improve their customer base."

Further, while payers usually reimburse pharmacies' claims only after the confirmation of drugs being received by the patients, the efficient workflow management solutions brought about by integration can ensure proper delivery of prescriptions and are likely to boost the return on investment from a PIS.

The growing need to incorporate interdisciplinary communication tools and facilitate message creation, transmission, and queuing capabilities is also expected to encourage the integration of PIS systems with computerized physician order entry (CPOE). This is likely to prove highly beneficial and spur the revenue of the PIS market.

Increasingly, vendors are being challenged to provide systems that can efficiently manage space constraints and drug inventory, and lower the possibilities of errors in prescription management.

"Most pharmacies are hoping to forge long-term customer relationships by providing cost-effective solutions and value-added services," notes Natesh Kare. "However, it is essential to do this without affecting the layout of the pharmacy and at no any additional costs."

In fact, finding cheaper options is integral to the success of this market. As automated refills become increasingly popular and economies of scale are achieved, the cost per prescription is expected to reduce.

Fully supported robots that can substitute counting systems and perform additional activities are also a financially viable option for pharmacies, as they are capable of lowering the operational expenses in the long run.

However, even while vendors have a number of options to track automated prescriptions, the monitoring of non-automated prescriptions remains a major challenge. In spite of the difficulties involved, vendors are increasingly beginning to acknowledge the potential opportunities within this area.

"The growing importance attached to patient safety and drug administration can encourage R&D in this area," notes Kare. "As newer, more efficient technologies are developed, the demand for non-automated prescription solutions is also likely to increase."

U.S. Pharmacy Information Systems Market is part of the Healthcare and Life Sciences IT subscription, and evaluates the current and future prospects of the U.S. PIS in the PAS and PMS sectors. It reviews the potential for new technologies that are likely to enter the market and evaluates the competitive profiles of leading participants. Further, it provides strategic recommendations that are likely to enable participants to overcome the challenges confronting them. Interviews are available to the press.

Frost & Sullivan, a global growth consultancy, has been supporting clients' expansion for more than four decades. Our market expertise covers a broad spectrum of industries, while our portfolio of advisory competencies includes custom strategic consulting, market intelligence, and management training. Our mission is to forge partnerships with our clients' management teams to deliver market insights and to create value and drive growth through innovative approaches. Frost & Sullivan's network of consultants, industry experts, corporate trainers, and support staff spans the globe with offices in every major country.

U.S. Pharmacy Information Systems Market

Frost & Sullivan

Danielle White, 210-247-2403
dwhite@frost.com