Revenue from a prescription.

The average pharmacy reimbursement across all payers in 2007 was $69.91 per prescription. Of this amount, about 80% ($56.06) represents the amount that the pharmacy pays to the manufacturer or a wholesaler to purchase the drug. The remaining 20% ($13.85) is used by the pharmacy to pay for operating and overhead costs such as salaries, rent, utilities, computer systems, complying with state and federal regulations and other expenses. From this amount, pharmacy retains a net profit of less than 2% ($0.84) per prescription.



S G & A = Selling, General & Administrative expense (i.e. marketing and administrative costs.)