down she goes, page-73

Thanks for your initial post TDA. I just had a quick look at DRL's performance with zafirlukast, which is a good comparison for Fonda since it is also the only generic competing against the brand and AG (at least i cant find evidence of another generic).

DRL took 57% of the market share with what looks like a healthy discount. The mohawk medical website lists a c40% discount for the AG ('Par') and i assume they followed DRL to that price.

Anyway, what i like about this is that if DRLs current strategy of modest market share at modest discount fails, they can always move to the 'zafirlukast model' and go for higher market share at higher discount.

Revenue comparison using US 340m market:
- 35% market share at 20% discount gives ACL 30m revenue
- 55% market share at 40% discount gives ACL 36m revenue

So the discount is fine if its matched with higher market share. Presumably since Fonda is cheaper to manufacture (and might be cheaper in the future) we can win a price war if it gets to that.

Anyway, i thought it was a good article providing good examples of DRLs effectiveness and varied strategies in making their generics profitable.