2 ms·
> Most generic companies make their profit off the first 6 months of exclusivity. The rest of the time they are barely breaking even (hence the drug shortages).
by csdreamer7 8y ago
> Most generic companies make their profit off the first 6 months of exclusivity. The rest of the time they are barely breaking even (hence the drug shortages).
I read that it was due to factory outages and the government keeping tight control over production of controlled substances. The FDA actually forced Pfizer to give up their quota this year to other manufacturers because they didn't produce enough of it due to their factory outages. It seems more like a large business playing hardball with the government and insurers than a lack of profit.
Also, you need to provide proof of your assertion of generics barely breaking even. I just glanced at Mylan who sells generics. They bring in 2B a year in operating cash flow on 12B in revenue.