The Spinoff: How Biosimilars Are Becoming Wholesalers' Next Hit Show
By Bryce Platt, PharmD For more than a decade, the answer to “Where do drug wholesalers make their money?” has been generic drugs. Although wholesaler revenues are linked most closely to sales of brand-name drugs, the majority of wholesalers’ gross profits comes from generic drugs. We estimate that in calendar year 2026, generic drugs will contribute 52% of total drug distribution gross profits of the Big Three wholesalers, but only 9% of drug distribution revenues. Generic drugs are the long-running hit show that has carried wholesalers' profits for 15+ seasons. The show is still on the air, but a supporting character is starting a spinoff. Generic drugs’ share of distribution gross profits has declined, from 68% in 2022 to 52% in 2026. This partially reflects the growth in profits from provider-administered biosimilars. Biosimilars now account for 6% of wholesalers’ drug distribution revenues, but 23% of total gross profits. Below, we preview data from our forthcoming 2026–27 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors to trace how the biosimilar category is standing out as wholesalers’ second profit engine. Read more » © 2006-2026 HMP Omnimedia, LLC d/b/a Drug Channels Institute , an HMP Global Company. All rights reserved. This Feed is for personal non-commercial use only.
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