Biotech Values

[zipjet]

If SNY could take 75 percent of the market they would have launched an AG last year instead of splitting he market with NVS

Not IMO.

I think in the short run SNY could approach 75% since the pharmacy market will be fast responding to price competition.

The difficulty is that would force Sandoz to cut prices and go after the institutional market aggressively. Price competition would erode the entire market.

So the question is where is the equilibrium and profit maximization for both parties with the AG out. My guess is SNY can take 60% to 2/3's of the market under these conditions with little additional price erosion.

ij