sales imminent article .profitable in 2011 ?, page-2

Too many are discounting the impact of multiple generics on the size of the market and the size of the potential piece of the pie - in the case here, we are talking about:

GSK Arixtra
vs
Fonda
vs
GSK generic

Based on most other examples, we all seem to accept the following:

- there is typically a growth in the overall market when a generic kicks in
- a decline in the sales and revenue of the original Arixtra

What everyone is worried about is how much of an impact the GSK generic will have on Fonda.

We have been advised that:

"Fondaparinux is extremely difficult to manufacture at scale. Alchemia's improved process for the manufacture of fondaparinux, licensed to Dr Reddy's..."

So the question to TDA and others in the know are:

- can Dr Reddy's produce Fonda at a cheaper price than GSK can produce Arixtra (and their generic)?

If so, are Dr Reddy's prepared to fight on price and how low can GSK afford to go? Their new licensee would surely need to sell at a certain price ($55), so what do DR need to do to grab a nice share of the market?

For those who may remember their marketing tutorials at university, its all about Price Elasticity of Demand and supply.

There are many other drugs with many more generics fighting for a far smaller piece of the pie.

Timing may be bad for some, but for others, the buying opportunity is outstanding. For me, its not just price elasticity of demand Fonda versus the others, its price elasticity of demand ACL at the moment - yum yum!