Biotech Values

[mauser96]

Perhaps some insight can be gained by looking at other duopolies in the past. Coke-Pepsi, GM- Ford come to mind , I'm sure there are several others. In none of the cases I'm aware of was there cut throat competition based only on price. The involved companies wound up with an unspoken arrangement and split the market. I don't know why it should be a lot different with drugs, but probably some detective work can be done there.
Large companies with high overhead accustomed to selling high margin products in general are ill equipped to fight it out in a commodity market. They would be better off using the cash to find new high margin products or buying out companies likely to have one.Wherever possible , commodity markets are avoided by astute managers.