Through LinesThe Evolving Specialty Pharmacy Market: Trend in Demand, Distribution, Affordability and Policy

Specialty drugs are a central component of the evolving U.S. healthcare system. While definitions vary, a specialty drug is distinguished by a combination of factors, including its molecular structure, target condition and method of administration, among other special access requirements. These drugs include biologic and traditional medications alike, and often target chronic, rare and serious medical conditions, like cancer or multiple sclerosis (MS).

Specialty drugs are also defined by their distribution – unlike a typical retail pharmacy, specialty pharmacies provide detailed medication protocols, patient education, advanced drug storage and ongoing clinical monitoring. As of 2024, there are 1,900 specialty pharmacies in the U.S. Specialty drugs are increasingly driving drug spending, reshaping payer strategies and challenging traditional distribution models. Accounting for 43.3% of total drug spending in 2017, they are anticipated to account for over half of spending by 2030, while the global  market size is expected to reach $965.5B.

Despite rising demand and rapid innovation in areas such as oncology, immunology and gene therapies, stakeholders face fragmented definitions, uneven access and mounting affordability pressures. At the same time, new entrants (e.g., Walmart Health, Amazon), digital tools (e.g., telepharmacy, medication delivery services) and policy reforms (e.g., the Inflation Reduction Act (IRA), 340B Drug Pricing Program) are forcing a reassessment of how specialty drugs are delivered, reimbursed for and integrated into care.