Replies to post #130404 on Biotech Values

[DewDiligence]

I responded to your message-board conspiracy theory last week in #msg-68650953. Regards, Dew

[rjmcanoe]

Reasons for AG launch. I agree with Dew that Sanofi's decision to do a AG was Amphastars's generic approval. But Novarts pushing mLovenox to 58% share with sLovenox at 42% was very bold. There would be a limit to how far Sanofi would tolerate increasing market share for mLovenox. I would be pissed at Novartis if in a Duapathy Sanofi was was making 184 million(3rd Qr) and the generic made 259million(3rd Qr) and at some point would launch a AG. The generic manufacturer is making more than the brand company.I assume their was a 15% premium for the branded drug. Novartis made 78 million more in third quarter than Sanofi even without this premium. I agree that the AG likely hurt both companies revenues Sanofi and Novartis but it looks like Novartis forced Sanofi to launch AG. No conspiracy theory I just feel Novartis was too aggressive in getting market share which had a lot to do with the AG launch in my opinion.
Bob