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Elan Corporation, plc Message Board

  • elig_ca elig_ca Oct 8, 2003 12:52 PM Flag

    Explanation of Economics

    Could somebody please explain the economics of stopping production or severely curtailing production of a drug coming off patent.Generics come out at substantial discounts is it less expensive for them to produce?Why wouldn't a company rename a drug coming off patent and reprice it to compete with the generics to maintain market share and continue to make a profit albeit with less margin.Thanks in advance for any help with this question.


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    • I don't think the answer is economics in the purist sense.

      Would imagine that Anti-trust and fair practice legislation play a part.A big part.

      an opinion

      • 1 Reply to okz45
      • Hi okz-Thanks for your response.By the same token that allows a generic manufacturer the right after x years to copy the drug it would seem like the original manufacturer could reduce price to compete no different than any other business be it software,hardware,nuts bolts etc.

        As I am somewhat new to Elan I will do some additional research to try and find the right answer to this.