SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Formerly About Advanced Micro Devices

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: TimF who wrote (891002)10/1/2015 9:37:02 PM
From: combjelly  Read Replies (2) of 1575342
 
Its not a matter of what AstraZeneca does but what the other companies do. If any company could produce esomeprazole, as soon as they could ramp up production then there would be more likely to be competition which would erode the pricing power that AstraZeneca currently enjoys.

Not necessarily, Tim. Because of lack of regulation, which you hate, it is perfectly possible, even common, for the original company to offer to share some of the profits with a company who is developing a generic if they stop and don't go through with it. Given the choice of going through the cost of development and the clinicals to show that it is just as effective, vs. taking a smaller, but less costly payment to not do something, which would you choose? Where does your self-interest lie?

Yeah, eventually they wind up having to bribe too many companies to make it worthwhile. But that can take decades and they certainly will have something better by then. The consumer pays monopoly prices for years longer than they should. But, that's the cost of freedom, right?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext