RE:USE RX AS A MODEL!!yixter wrote: RX certainly hasn't been diluting their stock to.get where they are so why would we? Yes we have far more drugs available to sell but who says we have to roll them all out at one time. The only way we should have to do a further dilution is if we are supplying a large chain across more territory and if this becomes the case than who will care about a bit more dilution imagine what that would do to the stock if SHOPPERS OR REXALL signs on it would be epic. No doubt this will happen sooner rather than later.
good post on RX as a model ... but NPH sells generics which is different: The medical community already is fully educated on the original brand product (and so you do not have to sell/educate to doctors) and they just get prescribed as generic equivalents...all generics being equal in most doctors eyes... so very little selling costs to doctors for nph compared to rx which has to educate and sell to the medical community a lot... NPH selling costs are directed to pharmacies getting them to carry the NPH generic portfolio, and once carried by a pharmacy selling costs are very low.. This is part of the beuty of the NPH model, since as they add new generics to the portfolio the new generics just get added to the system have almost zero sales costs....and if that new generic added happens to be a high margin "exclusive" generic , or difficult to make generic, or authorized generic then the high margin profits drop to the NPH bottom line ... and that is where things get exciting..