Image Source: Open Grid
Structure of the Pharmaceuticals Industry
The pharma (generic/other) industry is composed of makers of both brand and generic drugs. Intellectual property protection remains vital to the successful commercialization of safe/effective medicines, avoidance of pricing pressures, and offers brand firms competitive advantages over the life of such patents. Firms in the biotechnology industry face no certain future. Drug development is complex, difficult, and risky, and failure rates are high. Competition can be fierce when biosimilar products exist, though patents are material competitive advantages. We like the group, but the timing of expiration of patents should be watched closely.
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