Replies to post #102838 on Biotech Values

[EyeamBill]

SNYs Post-M-enox Approval Pricing

Healthtrust, and other GPOs, had pricing of WAC - 30% prior to M-enox approval. On the day of approval SNY came down another 1000 basis points to WAC - 40% to Healthtrust members, and as it turns out, most GPOs.

Pharmacists, like many professions, run in pretty tight groups. That's especially true for hospital pharmacists as some work part-time or as needed for other hospitals to supplement their full-time income. A colleague of mine who fits that description informs me that this 30-40% discount fact was his experience of his GPO too (that is different from Healthtrust).

I wonder if SNY can conduct a price war with what once was their best selling product if their Genzyme bid is deemed too low? Seems like their chance of acquiring Genzyme diminishes if their income takes too big a hit. Is their immediate 4% reduction projection (earnings or revenue, I can't recall?) factoring a enoxaparin price war into it?

[dewophile]

Basically what you are laying out is a price war

not at all a price war - what i am implying (or at least was trying to ) was just the manner in which SNY is going about trying to maintain some market share. it's obvious they need to come down in price to level of generic. rather than come down across the board and start a price war, they are coming down via contract pricing with certain GPOs/PBMs, but likely leaving others for generic to take - so in fact what i am implying is tacit collusion by giving up sole market to generic while striking exclusives at generic pricing for others
anyway at least that is how i think things will shake out..