iCompound Shows Compound Product Pricing Exclusively to Our Trusted Healthcare Providers (HCPs)

iCompound protects our pharmacies, providers, and patients by ensuring compounding pharmacy products pricing can only be viewed by qualified HCPs, thus inhibiting adverse price wars between pharmacies. We partnered with Doximity, the leading online medical professional network, to verify our healthcare providers. As pharmacists can create an account with Doximity, we have blocked pharmacists from getting kicked back to iCompound in order to avoid industry-damaging price competition.

While we fully support healthy competition, explosive price wars can have long-term negative impacts on both patients and pharmacies. While being a low-cost leader certainly has its place in the industry, we encourage pharmacies to respond to price competition through differentiation and by delivering a superior offering to patients rather than via destructive price wars.

By showing pricing only to our qualified healthcare providers, iCompound is able to help fulfill compound prescriptions at prices you can afford, with quality you can trust.

What Is a Price War and Why Should Pharmacists Avoid It?

A price war is a cut-throat competition wherein businesses cut prices in an attempt to increase their sales. Among pharmacies, a price war is when drug prices are repeatedly cut in order to out the competition. When one pharmacy decreases their prices, the rest lower theirs as well. A competing pharmacy may then reduce their prices even further, spurring a new round of drug price reductions, and the cycle goes on and on. The pharmacy industry engages in price wars when both heavy competition and a variety of comparable drugs exist. This increases a pharmacy’s incentive to reduce certain drug prices, and, left unregulated, can quickly spin out of control to the point of eliminated profits. Smaller pharmacies, with fewer resources, can then find themselves out of business.

Overly aggressive price wars among pharmacies can cause irreparable damage to the industry. iCompound is dedicated to ensuring providers get the best price for compound medication, but never at the expense of safety and quality, or at the risk of running smaller businesses into the ground. Price wars can drive down and deter from a compound products quality, which we believe is a principle pillar of pharmaceutical compounding. Price wars can also deteriorate a product’s market share, decreasing the availability of compound meds patients rely on for treatment.

When a large pharmacy forces competitors out of the market through fierce price reductions, patients and providers are left with fewer drugs to choose from. As competition dwindles due to price wars, the pharmacies that remain end up with more pricing power in the face of fewer competitors – which can ultimately lead to a monopoly and an overall increase in drug prices. Drug price wars can also damage the industry by creating false expectations among patients. Dramatically reduced prices that are below market value alter a customer’s perspective on what a product should cost. This can influence their likelihood of purchasing an appropriately priced item in the future. This change may seem positive in the short term, but it is clear how this can cause extremely negative long-term impacts on the pharmaceutical market.

Contact iCompound

Verified HCPs can visit iCompound today to find out how to become a part of our trusted network of healthcare professionals looking to ensure quality, safety, and affordability in compound prescription drugs.