Biotech Values

[DewDiligence]

PFE borrowing a page from NVS?

NVS has for some time been the big pharma most committed to the generic-drug business. Thanks to several generic acquisitions, NVS now ranks in the top two companies (along with TEVA) in worldwide generic sales.

Today, PFE announced an “increasing emphasis” on generic launches through its Greenstone subsidiary acquired in the Pharmacia takeover.

The fact that generic sales will barely amount to round-off error on PFE’s income statement is not the point. Rather, the significance is the deterrent effect PFE’s actions, including the recent launch of an “authorized” generic Neurontin, are apt to have on future generic challenges.