The Intersection of Pharma Wholesalers and Electric Cars: Exploring Revenue Growth and Safety Standards

Ben H.

Hatched by Ben H.

May 26, 2024

4 min read


The Intersection of Pharma Wholesalers and Electric Cars: Exploring Revenue Growth and Safety Standards


In this article, we will delve into two seemingly unrelated topics - the pharmaceutical wholesaler industry and the need to rethink brake lights for electric cars. While these subjects may appear disparate, they share commonalities that shed light on evolving industries and the importance of adaptability. We will explore the growing revenues of pharmaceutical wholesalers and the challenges they face, as well as the safety standards surrounding brake lights for electric vehicles and the need for regulatory adjustments. By examining these topics together, we gain unique insights into the changing landscape of various sectors.

Pharmaceutical Wholesalers and Revenue Growth:

The pharmaceutical industry is undergoing significant growth, with drug distribution revenues projected to reach $700 billion by 2023 for the Big Three public companies - AmerisourceBergen, Cardinal Health, and McKesson. This surge in revenue can be attributed to several factors, including the post-pandemic bounce back in U.S. healthcare and the increased utilization of new anti-obesity medications. Additionally, shifts in procurement strategies by large customers have contributed to this growth. However, the expansion of specialty drugs poses challenges to wholesalers' traditional economic models. Manufacturers are increasingly bypassing wholesale distribution channels for direct distribution, particularly for specialty products.

Specialty drugs, such as biosimilars of provider-administered specialty drugs, have emerged as a significant source of profits for wholesalers and specialty distributors. The biosimilar market continues to grow as adoption increases, prices decline, and payers relax medical benefit formulary limits. Wholesalers are also benefiting from generic versions of nonbiological specialty drugs. However, the list prices for brand-name drugs, which directly impact wholesalers' revenues and profits, continue to rise at single-digit rates. To adapt to this era of slower growth in list prices, wholesalers are adjusting their business economics and channel relationships.

Electric Cars and Brake Light Regulations:

In the realm of electric vehicles (EVs), the need to rethink brake lights has become apparent. The Federal Motor Vehicle Safety Standard No. 108 mandates that Stop Lamps should be steady-burning and activated upon application of the service brakes. However, a current issue with the US auto safety code is that stopping lamps are not required to illuminate when using regenerative braking, despite the fact that current EVs are capable of coming to complete and abrupt stops using this system.

This discrepancy in safety standards highlights the need for regulatory adjustments to ensure the visibility and safety of electric cars on the road. While regenerative braking is a unique feature of EVs that allows for energy recapture, it presents challenges for traditional brake light functionality. By reevaluating the requirements for brake lights in the context of electric cars, we can enhance road safety and ensure that all vehicles, regardless of power source, are equipped with visible and effective braking signals.


As we have explored the growth of pharmaceutical wholesalers and the need to rethink brake lights for electric cars, it becomes apparent that adaptability and innovation are key in navigating evolving industries. To thrive in the pharmaceutical wholesaler industry, businesses must address challenges posed by specialty drugs and changing economic models. Likewise, regulators must adapt safety standards to accommodate the unique features of electric vehicles, ensuring the visibility and safety of these increasingly prevalent automobiles.

Actionable Advice:

  • 1. For pharmaceutical wholesalers, diversify your revenue streams by capitalizing on the growing market for biosimilars and generic versions of nonbiological specialty drugs. This will help mitigate the challenges posed by the expansion of specialty drugs and fluctuating list prices.
  • 2. Electric vehicle manufacturers and regulators should collaborate to review and update safety standards to ensure that brake lights effectively communicate braking actions, regardless of the braking system used. This will enhance road safety and provide consistency in signaling across all vehicles.
  • 3. Stakeholders in both industries should prioritize adaptability and innovation. By staying abreast of industry trends, embracing new technologies, and actively seeking opportunities for growth and improvement, businesses and regulators can thrive in an ever-evolving landscape.

In conclusion, the growth of pharmaceutical wholesalers and the need to rethink brake lights for electric cars may seem unrelated at first glance. However, by examining these topics together, we gain valuable insights into the challenges and opportunities faced by industries in the face of changing dynamics. By embracing adaptability, innovation, and collaboration, businesses and regulators can navigate these changes successfully, ensuring growth, safety, and efficiency in their respective fields.

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