Value Drug Company

What Value Drug Company does

Value Drug Company is a pharmaceutical wholesaler organized as a cooperative of more than 600 independent pharmacies, founded in 1934 in Altoona, Pennsylvania and currently headquartered in Duncansville, PA. The company distributes over 25,000 brand, generic, injectable, and specialty pharmaceutical products from a 205,000-square-foot automated distribution center that achieves a 99.97% order accuracy rate using KNAPP-powered conveyor and picking systems. As of 2009 it was ranked 8th among U.S. pharmaceutical distributors, and by year-end 2008 had reported $732 million in total sales. The cooperative currently serves pharmacies across 22 states plus Puerto Rico.

The technology backbone is the proprietary ValueDrugHub online ordering platform (launched 1999) and the HUB Mobile App (launched 2015), supplemented by TraceLink-enabled DSCSA compliance tooling, a proprietary 340B virtual replenishment inventory management system, and a software capability developed in-house following the 2018 acquisition of Tykon, Inc. Beyond wholesale distribution, Value Drug operates a wholly owned specialty pharmacy subsidiary (Value Specialty Pharmacy, dually accredited by URAC and ACHC since 2011) and bundles clinical services (immunization, telemedicine, lab testing, point-of-care testing), 340B distribution, long-term care supply programs, marketing platforms (SnapRx, iMarketRx), and e-commerce enablement (Drugstore2Door) for member pharmacies.

The cooperative generates revenue through wholesale distribution margins, with profits shared among member-owners. Members enroll at no cost and receive a portfolio of operational, clinical, and growth services under multi-year relationships, with no enrollment-fee revenue model disclosed.

Name

Value Drug Company

Legal name

Value Drug Company

Website

https://valuedrugco.com

Company type

Private

Founded year

1934

Operating status

Operating

Headcount range

101–250 employees

Short description

Value Drug Company is a cooperative pharmaceutical wholesaler founded in 1934 that distributes 25,000+ products and provides specialty pharmacy, 340B, clinical services, and operational tools to over 600 independent member pharmacies across 22 states and Puerto Rico.

Ownership category

akta.pro rank

Product category

Pharmaceutical Wholesale Distribution

NAICS

Drugs and Druggists' Sundries Merchant Wholesalers (424210)

SIC

Wholesale-Drugs, Proprietaries & Druggists' Sundries (5122)

akta.pro primary industry

Full-Line Pharmaceutical Wholesalers (HLAIAJAA)

Keywords

• Pharmaceutical wholesale distribution
• Specialty pharmacy services
• Cooperative pharmacy procurement
• Pharmacy operational solutions
• 340B drug distribution

Headquarters

HQ city

Duncansville

HQ country

United States

HQ region

North America

Offices3 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Supply Chain, Operations, Personnel, Infrastructure, Technology or R&D, Marketing or Sales

Revenue model

1. Pharmaceutical Wholesale Distribution: Revenue generated through the sale of brand, generic, injectable, and specialty pharmaceuticals to member independent pharmacies. Operates as a cooperative where profits are shared among owner-members.
2. Specialty Pharmacy Services: Value Specialty Pharmacy (VSP), a wholly-owned subsidiary, provides specialty prescription fulfillment for independent pharmacies through VSP Authorized Care Sites.
3. Member Programs and Services: Programs including 340B distribution, clinical services, contract administration, and merchandise programs provided to member pharmacies at no enrollment cost.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels6 records

Core offering

Value Drug Company is a full-line pharmaceutical wholesaler organized as a cooperative of 600+ independent pharmacies, distributing more than 25,000 brand, generic, injectable, and specialty pharmaceutical products from its 205,000 sq ft distribution center in Duncansville, PA. Beyond wholesale distribution, the company operates a wholly-owned specialty pharmacy (Value Specialty Pharmacy), provides 340B distribution with proprietary virtual replenishment, and offers a portfolio of operational, clinical, compliance, and merchandising services to help independent pharmacies compete.

Product overview

Value Drug Company is a full-line pharmaceutical wholesaler organized as a cooperative of more than 600 independent pharmacies, founded in 1934 and headquartered in Duncansville, PA. The company's product portfolio is organized as a platform-plus-modules architecture centered on pharmaceutical distribution (over 25,000 products including brand, generic, injectable, and specialty pharmaceuticals) and wholesale ordering infrastructure. The core technology platform is ValueDrugHub (online ordering and information portal) complemented by the HUB Mobile App. Specialty pharmacy capabilities are delivered through Value Specialty Pharmacy (VSP), a wholly owned subsidiary dually accredited by URAC and ACHC, and the CP Specialty Pharmacy Services™ program. Clinical service modules include Value Health Center (telemedicine, lab services, immunizations, point-of-care testing, and OTC private label with 1,000+ items). Operational efficiency modules span Distribution Center Automation (KNAPP technology achieving 99.97% accuracy), DSCSA compliance via TraceLink, Suspicious Order Monitoring (SOM), and Value Operational Solutions. Pharmacy growth and management modules include 340B program management, Pharmacy First (PSAO), EQuIPP™ and PrescribeWellness quality platforms, compliance consulting (PRS, R.J. Hedges), Sykes & Company financial consulting, Value Buy/Sell Program, and pharmacy systems software partnerships (QS1, SuiteRx). Merchandising and marketing modules include Seasons by Value Drug (seasonal merchandise), SnapRx and iMarketRx marketing platforms, Drugstore2Door e-commerce, and Merchandising & Design Services. Long-term care offerings include CareSuite By QuickMAR eMAR, medication carts, packaging supplies, and GPO contract services.

Differentiator

Problem solved

Functional benefit

Brands

• Value Specialty Pharmacy: A wholly owned subsidiary providing specialty pharmacy services, dually accredited by URAC and ACHC, enabling independent pharmacies to fill specialty prescriptions
• Value Health Center
• CP Specialty Pharmacy Services
• Seasons by Value Drug Company
• Value PAC
• Value Operational Solutions
• ValueDrugHub
• HUB Mobile App

Products and services

• Pharmaceutical Wholesale Distribution
• ValueDrugHub
• HUB Mobile App
• Value Specialty Pharmacy (VSP)
• CP Specialty Pharmacy Services
• 340B Program

Quantifiable outcome

• Order accuracy rate of 99.97%
• +2 more outcomes

Named customers1 record

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration5 records

Feature5 records

Partnerships

15 partnerships are on record, tiered core and minor.

• TraceLinkcoreTechnology or Integration · 22 June 2023Partnership with TraceLink provides cloud-based B2B connectivity platform for DSCSA (Drug Supply Chain Security Act) compliance. Enables Value Drug and member pharmacies to retrieve, exchange, and archive compliance documents on-demand. Supports tracking of prescription drug products to prevent counterfeit drugs from entering the supply chain.
• PRS (Pharmacy Resource Services)coreImplementation/ SI/ Consulting Partner · 22 June 2023Partnership with PRS provides compliance consulting, pharmacy ownership and brokerage services, buying/selling/transferring services, and DSCSA compliance solutions. PRS is a pharmacist-owned business providing comprehensive pharmacy consulting.
• Pharmacy FirstcoreImplementation/ SI/ Consulting PartnerPharmacy Services Administrative Organization (PSAO) providing third party contracting, claims reconciliation, credentialing, quality monitoring, and PF C.A.RES. compliance program. Value Drug primary members receive reconciliation services at no cost.
• Sykes & Company, P.A.minorImplementation/ SI/ Consulting PartnerAccounting, tax and advisory services focused on independent pharmacies. Provides Comprehensive Pharmacy Account System (CPAS) for financial management and reporting.
• GS Retail ServicesminorGTM or Marketing PartnerMarketing, signage and graphics partnership providing interior/exterior signage, end-cap headers, wellness graphics, seasonal displays, and custom merchandising for independent pharmacies.
• SnapRxminorGTM or Marketing PartnerComprehensive marketing communication platform providing email marketing, social media management, responsive websites, and e-commerce capabilities for independent pharmacies.
• iMarketRxminorGTM or Marketing PartnerFull-service social media, marketing and consulting company focused on independent community pharmacies with cost-effective monthly pricing.
• KNAPPcoreTechnology or IntegrationDistribution center automation provider delivering computer-controlled conveyor systems, automated picking and retrieval systems for high throughput order processing.
• Ulta Lab TestsminorStrategic or Co-development PartnerDirect low-cost lab testing without prescription at over 2,500 patient service centers. Pharmacies offer lab vouchers with savings up to 80% off regular prices.
• GeriMedminorChannel Partner/ Reseller/ DistributorLong-term care GPO providing pharmaceutical, medical supply, and business product contracting services.
• Managed Healthcare Associates (MHA)minorChannel Partner/ Reseller/ DistributorLong-term care and specialty GPO providing contracts for retail and LTC pharmacy services.
• InnovatixminorChannel Partner/ Reseller/ DistributorLong-term care GPO providing access to pharmaceuticals, medical supplies, and business products/services.
• AsembiaminorChannel Partner/ Reseller/ DistributorSpecialty pharmacy contracting services for retail pharmacy members.
• OptiSourceminorChannel Partner/ Reseller/ DistributorGeneric source program providing contract services for generic pharmaceuticals.
• Healthcare Distribution Alliance (HDA)coreStrategic or Co-development PartnerIndustry trade association representing pharmaceutical supply chain. Advocacy partner offering networking, educational programs, and industry forums. Value Drug joined NWDA (now HDA) in 1980.

Scale indicators8 records

Recent moves8 records

Expansion highlights5 records

Broad incumbents

• McKesson Corporation: Largest U.S. pharmaceutical wholesaler; directly comparable as a full-line drug distributor but operates at vastly greater scale and serves all channels including chains, hospitals, and independents.
• Cardinal Health: Top-three U.S. pharmaceutical wholesaler with extensive distribution and specialty pharmacy operations; competes with Value Drug for manufacturer relationships and member pharmacy contracts.
• Cencora (formerly AmerisourceBergen): Third of the Big Three U.S. pharmaceutical wholesalers with strong specialty distribution (through US Bioservices/PharmaLex); directly comparable in core wholesale activities with much larger scale.

Direct peers

• Rochester Drug Cooperative: Employee-owned pharmaceutical wholesaler cooperative serving independent pharmacies in the Northeast — the closest structural analog to Value Drug's cooperative model and independent-pharmacy focus.
• Smith Drug Company: Wholesale distributor focused on independent community pharmacies, offering brand/generic distribution, specialty pharmacy services, and DME — directly comparable customer base and service mix.
• Morris & Dickson: Full-line pharmaceutical wholesaler serving independent retail pharmacies, hospitals, and clinics across the South Central U.S.; closely comparable in customer mix and distribution scale.
• H.D. Smith (now part of AmerisourceBergen): Was the largest privately held U.S. pharmaceutical wholesaler focused on independent pharmacies before being acquired; historically a direct competitor to Value Drug in serving community pharmacy customers.
• TopRx (formerly Top Pharmacy Group): Pharmacy services organization providing group purchasing, PSAO, and distribution services to independent pharmacies; competes with Value Drug for independent pharmacy relationships.

Emerging players

• PharmaLex / US Bioservices: Specialty pharmacy services provider with significant presence in oncology and complex therapeutics; partially comparable to Value Drug's VSP subsidiary in the specialty distribution space.

Others

• Pharmacy First (PSAO): Pharmacy Services Administrative Organization (PSAO) providing third-party contracting, claims reconciliation, and credentialing to independent pharmacies — partner/adjacent rather than direct competitor, as Value Drug members access Pharmacy First through Value Drug.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/value-drug-company

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles10 records

Subsidiaries3 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Value Drug Company