A new cancer-drug distribution system that aims to cut drug costs for community oncology practices around the country is being launched by OneOncology Inc., of Orlando, Fla., which started its Web-based system
In a challenge to the status quo of the drug-distribution business, OneOncology plans to conduct periodic online “reverse auctions.” Wholesale-drug distributors would bid on the opportunity to fill product orders pooled from hundreds of community oncology clinics around the country. OneOncology thinks this will give smaller clinics access to lower prices than they get now, according to Chief Executive
Steven Kirchof. Under the current system, small practices typically have longstanding relationships with distributors.
“It threatens the existing status quo for companies like Oncology Supply,” said Kirchof, a former executive with International Business Machines Corp.’s ( IBM) healthcare unit. “I believe that most of the distributors will come and play, and probably play very aggressively.”