Biotech Values

[tinkershaw]

Surely a lower priced generic Copaxone, of which NVS would only derive 50% of the revenue, would have some negative effect on the uptake of Gilenya.

http://www.bloomberg.com/news/2010-09-30/novartis-gilenya-ms-pill-to-cost-48-000-a-year-update1-.html

The cost of Gilenya is about 50% more than Copaxone. I think it will put a limit on these practically unlimited price increases that Copaxone has been able to implement over the last few years.

If NVS really wanted to take over the entire market, and they thought price would accomplish this, I'm sure the drug would be remarkably profitable at $3,500 per month as well or even $3,000 per month. I just don't think NVS thinks that price is the determinative factor in Gilenya adoption. People will adopt the drug for other reasons, and some may be deterred by the high price, and those so deterred will probably stick with Copaxone more than the other less costly drugs.

Tinker