3 ms·
The real question is why did the maker of the original (priced at $2800) hold strong when a generic existed at $500. Who was purchasing this highly marked up "p
by Zenbit_UX 7y ago
The real question is why did the maker of the original (priced at $2800) hold strong when a generic existed at $500. Who was purchasing this highly marked up "premium" antibiotic for UTIs?
In a free market the rational way this would play out is original manufacturer runs wild with their monopoly until a generic is made and undercuts them, they then in turn lower their prices to compete.
The only way I see the current situation playing out is with some kind of pricing collusion between the two manufacturers.
- darkerside 7y agoPremium brands can charge premium prices. Part of that is their relationships with doctors. It's not great, but at least if there's a generic option that is truly affordable, people who are cost-conscious have an opportunity to pursue it. Yes, there are multiple problems with the healthcare industry, and I'm aware what I'm describing doesn't solve all of them.