This article was originally distributed via PRWeb. PRWeb, WorldNow and this Site make no warranties or representations in connection therewith.
Factors eroding buyer power for the antiviral drugs market include rising prices and high demand, which are expected to continue increasing during the next three years, along with high market share concentration and low availability of substitutes; nonetheless, intense vendor competition, low switching costs and changes in regulation give buyers a degree of leverage over suppliers. To help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has added a report on the procurement of Antiviral Drugs to its growing collection of procurement category market research reports.
Los Angeles, CA (PRWEB) February 25, 2014
Antiviral drugs have a buyer power score of 2.7. This score reflects the fact that antiviral drug suppliers have more power than buyers when negotiating supply contracts. Factors eroding buyer power include rising prices and high demand, which are expected to continue increasing during the next three years, along with high market share concentration and low availability of substitutes. Nonetheless, intense vendor competition, low switching costs and changes in regulation give buyers a degree of leverage over suppliers, says IBISWorld business research analyst Keiko Cadby.
Rising prices are largely the result of patent activity. Patents allow drug manufacturers to monopolize the research, development, production and sales of antiviral drugs for several years, setting premium prices and limiting production to their own facilities. Soon after patent expiration, generic brand manufacturers produce and sell versions of the drug for competitive prices, mitigating the rising average price of antiviral drugs. As the fastest-growing age demographic in the United States, the number of adults aged 65 and older increases demand because of their widespread use of antiviral drugs. High market share concentration allows a few manufacturers to set high list prices, and the low level of substitutes due to patent activity makes it difficult for buyers to seek lower prices elsewhere, says Cadby.
Despite rising prices, buyers can take advantage of intense supplier competition, low switching costs and regulatory changes. Buyers can elicit deeper discounts from competing manufacturers, distributors and wholesalers by making bundle purchases, and participate in government cost-saving programs if eligible. Group purchasing organizations are a useful purchasing tool to increase buyer power by pooling member needs into larger volume purchases; however, they do not necessarily draw deeper discounts for individual buyers with large orders. If possible, buyers should combine purchase orders for antiviral drugs with other medications the supplier also offers and seek and apply for rebate and discount programs if eligible. Major vendors include Bristol-Myers Squibb, Gilead Sciences Inc., GlaxoSmithKline PLC, Merck & Co. Inc. and Roche. For more information, visit IBISWorlds Antiviral Drugs procurement category market research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of antiviral drugs. Antiviral drugs are medicines used to treat viral infections, such as herpes viruses, the hepatitis B and C viruses, human immunodeficiency virus (HIV) and influenza A and B viruses. Unlike antibacterial drugs, which may cover a wide range of pathogens, antiviral agents tend to be narrow in spectrum and have limited efficacy. Suppliers of antiviral drugs include manufacturers, wholesalers and pharmacies.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Vendor Financial Benchmarks
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorlds procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
For the original version on PRWeb visit: http://www.prweb.com/releases/2014/02/prweb11616923.htm
Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact email@example.com.