Rising demand for hypertension treatment products along with increasing regulations and input prices have pushed up drug prices
Los Angeles, CA (PRWEB) May 30, 2014
Antihypertensive drugs have a buyer power score 2.3 out of 5, reflecting this market's currently negative pricing trends and indicating a relatively moderate level of buyer negotiating power. In the past three years, prices of antihypertensive drugs have increased due to rising demand for hypertension treatment products, as well as regulatory compliance costs and stiff competition from generics. Rising research and development (R&D) expenditure and wages, on top of rising prices of raw materials such as chemicals and allied products, have expanded production costs, thus pushing up the prices of antihypertensive drugs, says IBISWorld analyst Anna Son. However, the increased availability of generic drugs, which are far less expensive than their brand-name counterparts, and fierce competition among suppliers have helped mitigate severe price spikes during the past three years.
Major suppliers in the market include Novartis AG, Pfizer Inc. and Merck & Co. Inc. The cost of switching suppliers varies depending on the type of supplier. For example, buyers can expect lower switching costs with suppliers of the most commonly prescribed antihypertensive drugs because of their wide availability and low buying lead time. This factor increases buyer power and allows the buyer to restock their inventory in a relatively short time frame, barring contract negotiations. On the contrary, continues Son, buyers are more likely to incur higher switching costs with suppliers of more specialized antihypertensives, especially when there are only a limited number of suppliers of that particular drug. Furthermore, increasing market share concentration is detrimental to buyers; suppliers of antihypertensives have been consolidating in the past three years in light of patent expirations, changes brought on by healthcare reform and the overall consolidation in the healthcare sector.
The wide acceptance and adoption of antihypertensives benefits buyers, contributing to steady demand. Moreover, most suppliers focus on existing contracts rather than reaching out to new markets, further increasing buyer power as suppliers seek to retain their existing contracts. However, the low availability of substitutes and a moderate level of product specialization strain buyers' negotiating power. For more information, visit IBISWorld’s Antihypertensive Drugs procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of antihypertensive drugs, which are medicines used to prevent the complications of high blood pressure, such as stroke and myocardial infarction. There are many classes of antihypertensive drugs that help lower blood pressures by different means. Among the most widely used are thiazide diuretics, ACE inhibitors, calcium channel blockers, beta blockers and angiotensin II receptor antagonists (ARBs).
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
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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.