Generic Drug Pricing Practices under Scrutiny

January 2016 Pricing, Selling

High barriers to entry must be keeping competitors from providing alternatives to off-patent generic drugs. What could be the source of these barriers to entry?
It isn’t the lack of know how. Many firms are able to produce chemicals, even specialized chemicals in the life sciences. And, that is what a drug is: it is a chemical. As observed in animal health care, agricultural chemistry and many other specialty chemical companies: competition keeps prices relatively low. Yet, in human life sciences, there is insufficient competition.


“Demand for rides on New Year’s Eve increased by 250 percent between 12:01 a.m. and 12:30 a.m., up from 180 percent from last year.” —Referring to Uber, Pittsburgh Post Gazette

  1. A new year means new demands.
  2. A surge beats getting a D.U.I.
  3. Maybe there was champagne on the ride to make up for higher rates.
  4. Better to pay a surge than be sorry.
  5. Maybe Uber is trying to take care of their drivers.
  6. In 2016, they could take care of their customers too.
From the Archives

Generic Drug Pricing Practices under Scrutiny

» December 2015

Arbitrage With Unofficial Exchange Rates

» July 2015

Keeping Customers Isn’t So Easy

Does Surge Pricing Have an Image Problem?

» December 2015

Ensure Your Digital Marketing Strategy Supports the Business Goals

» June 2015

Cost-Plus or Value-Based (Services)

Pricing Automation: Questions to Ask

» November 2015

An Overly Simplistic Approach to Pricing Strategy

» July 2015

Pricing Isn’t an Event, it’s a Journey