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by avivo
4280 days ago
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I'd like to see more of a potential plan here - otherwise I'm afraid that making a drug un-patentable would make it /less/ likely that it goes to market. I believe I've seen evidence of exactly that happening as margins for a drug are very low if it can't be protected (via IP), and the cost to bring a drug to market is so high. I see many problems with current IP system - but I don't see how this is avoidable in a completely commoditizable generic drug market. If I'm making some incorrect assumptions here, I'd love to know! |
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This is definitely a possible outcome.
http://biz.yahoo.com/p/5qpmu.html
generics manufacturers make ~ 6% margin, which is basically "what most businesses make". "Drug manufacturers - Major" make 20% margin. Keep in mind also that big pharma spends about as much on advertising as they do on R&D.