AI
Tuesday, October 06, 2009 6:28:26 PM
>>FWIW, my take on the possibility of an "authorized generic" is that Sanofi launching an authorized generic would be quite unlikely in the "single generic" case but likely in the "multiple generic" case. The reason for this is that in the single generic case there would be duopoly pricing, and Sanofi would have little reason to further undercut the price.
I agree with that.
However, even in the "single generic" case it does depend on some acceptable competitive standoff being achieved. If MNTA priced too low, taking too much of the market share, Sanofi could be motivated to get more aggressive and they would have a number of alternatives to do that. But that could bring out price cuts by MNTA which ultimately could spiral out of control in a price war.
Long ago we played those kind of pricing games in school. I can only imagine the refinements that 40 years and computers have brought to the "game".
ij
I agree with that.
However, even in the "single generic" case it does depend on some acceptable competitive standoff being achieved. If MNTA priced too low, taking too much of the market share, Sanofi could be motivated to get more aggressive and they would have a number of alternatives to do that. But that could bring out price cuts by MNTA which ultimately could spiral out of control in a price war.
Long ago we played those kind of pricing games in school. I can only imagine the refinements that 40 years and computers have brought to the "game".
ij
There are times when rules and precedents cannot be broken; others when they cannot be adhered to with safety. (Thomas Joplin)
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