New auction sites seek to offer contamination control products at a cost savings. The latest to leverage this new purchasing model are two companies who sell to the pharmaceutical and hospital industries.

Success depends on leveraging all that is unique about the Internet, says Laurence Ravat, international business manager at Frost & Sullivan, a Mountain View, CA-based market research firm. Business must be fast, easy, and able to provide a large amount of pertinent, well-organized information to the customer, she adds.

Pharmabid.com, an auction website that started last week, features manufacturers selling pharmaceuticals and medical device products. Similar to the eBay auction website, Pharmabid uses the English auction bid system, which allows distributors to set their opening bid or a reserve price.

Started by Orange, CA-based ASD Healthcare, Inc., the site is initially offering disposable and surgical products, especially those with a limited shelf life. Licensed health care providers can purchase a variety of products from Pharmabid, such as gloves, plasma, and syringes, which are usually sold through group purchase organizations.

“We&#39re not here to replace a primary vendor. Customers can visit our site to stock up on supplies that are running low or just to get a great deal,” says Neil Herson, vice president and general manager of ASD, which is a subsidiary of Bergen Brunswig Corp.

According to Herson the site gives manufacturers a new distribution channel for their short-dated products. They now have a new way to unload surpluses quickly, he says. Customers can purchase time-sensitive products more efficiently, and they can use Pharmabid.com to purchase products when they are difficult to locate locally, Herson says.

“Having a broad range of manufacturers and products is very important to a company like Pharmabid. Because the are selling small lots of low-cost products, they need to offer one-stop shopping and save customers the work of searching for prices in order to make comparisons and evaluate savings,” says Ravat.

Neoforma.com is pursuing a slightly different market with its sales of refurbished and secondhand medical and pharmaceutical equipment. “The products are priced higher, so the savings to customers are more substantial,” says Ravat. Formed last May, Neoforma, Inc. has partnerships with Owens & Minor, Healtheon, and others.

These new startups will need time to find their footing, say company officials. The major obstacle is the conservative nature of many in the pharmaceutical and medical device industries, says Herson. However, people will adapt when they see the time and money saved from auction purchasing. The efficiency of the buying process will encourage new customers, Herson says.

According to Herson, eventually Pharmabid plans to hold reverse auctions, where medical professionals can solicit for products within a price range they specify.

For more information on Pharmabid.com, call (800) 746-6273 or visit http://pharmabid.com. For more information on Neoforma.com, call (877) 856-1234 or visit http://www.neoforma.com.