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


To: Biomaven who wrote (9610)11/30/2003 2:57:14 PM
From: software salesperson  Read Replies (1) | Respond to of 52153
 
peter,

emergence of a new drug industry in China and India.

to what extent do you think that it would be possible for biotech/pharma to outsource drug discovery and research to these countries similar to the way in which the software industry and corporate IT has outsourced software development(where the savings is ~ 80%)? if so,how many years do you think it would take? any investment ideas with this theme in mind?

thanks.

sales



To: Biomaven who wrote (9610)11/30/2003 5:02:17 PM
From: Ian@SI  Respond to of 52153
 
It only took days for the Canadian Government to get Cipro from a generic provider when its manufacturer said it had supply problems. (shortly after the Anthrax attacks in the states) If I remember correctly, those supply problems disappeared very quickly.

Pharma are attempting to limit supply to Canada to prevent re-exportation. But this strategy still has to be tested against an angry Canada when local shortages emerge. The Canadians might be tough - threaten compulsory licenses to generic companies, for example.

Re Counterfeit risk: If dealing with a reputable supplier, I doubt that the risk is much different in either country.

We might get a decade-long new drug drought ... Perhaps big Pharma might cut back on some of its less productive expenditures. e.g. - funding post approval studies, not otherwise required, which seem to have a sole purpose of getting some clinician to make some highly publicized pronouncement about how wonderful a particular patented drug is; or, hold fewer conventions in less exotic destinations, with less generous allowances for the attending physicians and their "guest".

In the Barron's article, I think PFE's cash flow was in the order of $15B. Surely we don't have to shed too many tears for PFE yet just because some senior living near the poverty line gets drugs from Canada.

I accept without reservation your argument that the USA should not be funding drug discovery/development for the world and then not be adequately compensated. The questions then become, "What is adequate compensation?"; and "What share of development is done by the USA?" Seems to me that Europe, Canada, Japan, ... are also quite active in this field.

Just my 2 cents worth,
Ian



To: Biomaven who wrote (9610)12/3/2003 3:33:35 AM
From: Sam Citron  Read Replies (1) | Respond to of 52153
 
RE: emergence of a new drug industry in China and India

Indian drug invasion a tough pill to swallow
atimes.com