Business Daily from THE HINDU group of publications
Sunday, Jun 25, 2006
Business Daily from THE HINDU group of publications Sunday, Jun 25, 2006 |
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Investment World
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Pharmaceuticals Corporate - Regulatory Bodies & Rulings Columns - The Big Deal Not so sweet a pill
Patent challenges may not be as lucrative.
But it may not be time to uncork the champagne, yet. In a first-of-a-kind move, Merck has negotiated with a couple of leading insurers to offer the branded version at prices lower than what can be charged by generic players. In one stroke, Merck has significantly reduced the attractiveness of the financial opportunity that an exclusivity or presence as an authorised generic entails. Though such revenues are of a one-off nature, the opportunity loss, in this particular case, will be amplified in the case of Dr Reddy's. At a macro level, the key issue would be whether such a move by Merck is an aberration or a harbinger of how innovator companies would respond when their patents are challenged. If it is indeed the latter, then Indian players targeting the generics market in the US should gear up to face some rough weather.
Nath Balakrishnan
More Stories on : Pharmaceuticals | Regulatory Bodies & Rulings | Ranbaxy Laboratories Ltd | The Big Deal | Dr. Reddy's Laboratories Ltd
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