Think about who has economic power here. There are 3 wholesalers that sell >80% of pharmaceuticals in the US. Whilst the flood of generics have brought down prices, volumes have increased massively, and these 3 behemoth gatekeepers have increased their gross profits substantially, even at lower % gross margins.
Any strength in the generics pharma co's lies in their existing relationships with the wholesalers, not in their ability to battle it out with the army of generic drug developers, especially those based in India (which are growing their market shares).
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