Biotech Values

[zipjet]

My concern is the erosion of the market revenue for L. The timing of the erosion relative to the regulatory/legal events is interesting but of less consequence than the impact on revenues. The driver of price competition whether by the AG or branded makes little difference. SNY drives both.

SNY was better positioned (timing) to start the price competition with the branded than the AG - so they did. But because the competitors must meet competitive cuts in pricing it makes little difference who starts the cutting or whether it comes from a brand or AG. SNY misjudged the situation and shot themselves in the foot.

I do agree that it is likely that pricing is again stable but at a lower level. How much lower? That question is likely more impactful to the bottom line than new competition in ACS.

ij