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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: WhatsUpWithThat who wrote (8309)	5/8/2003 10:45:22 PM
From: Biomaven	Read Replies (1) \| Respond to of 52153

Let's try to bring this deflation discussion back on topic: <g> Consider what happens when a drug goes off patent. Prices plunge, and in the short term the consumer benefits. But there is a hidden cost - innovation in that area typically stops, or at least dramatically slows. It is my belief that this spreading genericization is playing a significant role in the problems that big pharma are now having. If you look at many of the blockbusters, you will see that a big chunk are actually somewhat-improved "me-too" products (think Lipitor). In fact I wouldn't be surprised if the majority of current big pharma sales are such me-too products. Suddenly, though, the pharma are having to look further afield for their next blockbuster. And the first in a new class of drugs is always much harder and riskier. So arguably, this circumscribed (but spreading) deflation in drug prices is having a major long term effect on the fortunes of big pharma. How's that for getting us back on topic? Peter P.S. I too remember core memory. My distant recollection is that one of the advances of the 70's was a machine someone (IBM?) developed that threaded the core magnets automatically instead of using retired seamstresses... <g>