the personal views of a doctor in industry

GSK inks deal with Dr Reddy’s

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GSK joins the ranks of pharma firms that have recently been inking deals with generics manufacturers. Interestingly, GSK is taking the specific line that these generic drugs are for the emerging markets and presumably not US or EU.

The rationale, as stated by the FT (GSK in generic drug alliance), is that in emerging markets “selling large volumes at lower prices is more important”. I live in the emerging markets and I am not convinced.

There is a market for branded drugs, and there is a market for generic drugs. They are different things. It might be necessary to sell generics in the short term, but it is not the only or best thing that we could be doing.

With perhaps the exception of Novartis (and its impressive Sandoz generic arm), one should consider the generic gamble as a hail mary pass not a properly thought through strategy. Unless, of course, someone provides the data, rather than hyperbole, to show that this is actually a good idea for pharma.


Written by Pillhead

June 20, 2009 at 8:48 pm

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