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Last updated on April 21, 2014 at 5:04 EDT

Anesthetic Drugs Procurement Research Report Now Available from IBISWorld

January 1, 2014

Rising regulatory compliance costs and generics competition have caused prices of anesthetics to fluctuate, in part resulting in negative pricing trends. To help procurement professionals make better buying decisions, business intelligence firm IBISWorld has added a report on the procurement of anesthetic drugs to its growing collection of procurement research reports.

Los Angeles, California (PRWEB) January 01, 2014

Anesthetic drugs have a buyer power score of 2.5 out of 5. The score reflects current negative pricing trends and indicates a moderate level of buyer bargaining power. “Prices for anesthetics have fluctuated over the past three years as a result of rising regulatory compliance costs and generics competition,” says IBISWorld procurement analyst Anna Son. The patent expiration of many blockbuster drugs has increased availability of generic anesthetics, which are typically far less expensive than their brand-name counterparts, thus helping to mitigate price growth over the past three years. Nevertheless, a limited number of suppliers of anesthetics that are in short supply, such as propofol, has kept prices high due to the constrained supply of those drugs.

The cost associated with switching anesthetics suppliers varies depending on the type of supplier. For example, buyers can expect lower switching costs associated with suppliers of commonly used anesthetics, such as ketamine, because of their instant availability and low buying lead time. “This provides buyers with the opportunity to restock their inventory in a relatively short time frame, barring contract negotiations,” says Son. In this case, buyers of anesthetic drugs have greater leverage in negotiating contracts. On the contrary, buyers are more likely to incur higher costs when they switch suppliers of anesthetics that are in short supply, especially when there are only a small number of suppliers of that particular drug. As such, suppliers of rare anesthetics have greater negotiating power over buyers. Some of the major vendors include Abbott Laboratories, Baxter International Inc., Fresenius Kabi AG and Hospira Inc.

Furthermore, anesthetic manufacturers typically capture high profit margins. High margins usually give buyers room to negotiate for lower prices. However, the low availability of substitutes, a moderate level of market share concentration and the high specialization among suppliers limit buyers' negotiating power. In addition, the anesthetics market is mature and has a low level of financial risk, given its established place in the supply chain.

For more information, visit IBISWorld’s anesthetic drugs procurement research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of anesthetic drugs. Anesthetic drugs are medicines used to produce anesthesia or loss of normal sensation or feeling and are generally administrated to facilitate surgery. Anesthetic drugs can be grouped into two classes: general anesthetics, which cause a reversible loss of consciousness, and local anesthetics, which cause a reversible loss of sensation in a particular area of the body while maintaining consciousness.

Executive Summary

Pricing Environment

Price Fundamentals

Benchmark Price

Pricing Model

Price Drivers

Recent Price Trend

Price Forecast

Product Characteristics

Product Life Cycle

Total Cost of Ownership

Product Specialization

Substitute Goods

Regulation

Quality Control

Supply Chain & Vendors

Supply Chain Dynamics

Supply Chain Risk

Imports

Competitive Environment

Market Share Concentration

Vendor Financial Benchmarks

Switching Costs

Purchasing Process

Buying Basics

Buying Lead Time

Selection Process

Key RFP Elements

Negotiation Questions

Buyer Power Factors

Key Statistics

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, IBISWorld’s 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/2014/01/prweb11454217.htm


Source: prweb