ORLANDO, FL – More than $1 billion worth of drug orders from hundreds of community oncologists across the United States will be offered up for bid on Tuesday, Dec. 11 in the first electronic auction organized by OneOncology, Inc.
Formed in 2006, OneOncology’s goal is to tap into a $16 billion-a-year market by offering the nation’s roughly 6,000 community oncologists an online means of filling their drug orders. The company has been accepting registrations from community oncologists and pharmaceutical drug distributors for the reverse auction.
“Setting an initial auction date is another major milestone for OneOncology and is a product of the support and trust community oncology has in our company, the hard work of our employees and our belief in transparency, visibility and unity in drug purchasing,” said M. Steven Kirchof, chief executive officer. “Our initial auction will be a first for community oncology and open the drug distribution process to highly qualified distributors, buying groups and GPOs who have not previously been able to offer cancer drugs to community oncologists.
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Company officials say similar auctions in other industries, such as chemicals and fuels, have resulted in average price decreases of between 3 percent and 35 percent.
OneOncology’s technology will combine individual orders from community practices to allow drug distributors to bid on larger, guaranteed blocks of drug purchases on a line-item basis.
U. Ben Favret, OneOncology’s co-founder and vice president of sales, said the system will allow distributors to realize short-term profits while ensuring long-term viability by controlling costs, improving inventory, lowering sales and marketing costs, improving the payment process and improving the relationship between oncologist and distributor.