Decreasing Prices of OnSite Devices as a Result of Competition

With the popularity of the on-site drug screens, new manufacturers, including several from overseas, have entered the market because of the apparent low startup cost of lateral-flow technology. In order to garner market share, many of these new entrants have resorted to a low-price strategy. Although it is good news to the end-users, impacts on the US manufacturers are tremendous. In response to the lowered margin, many are forced to move manufacturing to locations in Mexico or China, while others have left the drug-testing industry altogether. Moreover, the low price also reduces funding for research and development.

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