Replies to post #101326 on Biotech Values

[mcbio]

Re: SNY lovenox pricing

With my feeble brain, I'm having trouble following all the discussions about MNTA here. A question I have is why doesn't SNY just lower the cost of their drug--14% doesn't seem like such a horrendouos discount--in order to retain market share, or even lower their drug pricing below Sandoz's, in order to drive Sandoz's generic out of the market?

Because then you'd have an all-out price war and nobody would win with both sides going back and forth lowering prices. Better to optimize profits by not getting into a pricing war.

[rkrw]

If they lower it than Sandoz lowers it, then you have yourselves an old fashioned price war. I wouldn't think that's what Sandoz wants. They may as well just launch an authorized generic and match Sandoz pricing under your scenario.

[zipjet]

I'd be saying something like, "Look, we'll give you the same price as Sandoz is charging and you won't be risking the lives of your patients with a drug that has never gone through clinical testing."

You could be training their reps. :-)

That is exactly what they will do when they need to in order to retain the customer. That approach is pretty easy with big hospitals or hospital buying groups. Then you try to lock them into an exclusive deal.