RE:RE:RE:RE:Here is how you get to over 200 drugs......NHS rewards companies for saving it money. From my understanding, if a drug costs $1 and is being taken 3 times a day by a patient, that costs $3/day. If a Company reformulates that drug, charges $2 (a 100% increase from price) for 1 pill a day instead of 3, NHS saves $1, the Company makes $1 more. Now why would the Company do this you ask? Aren't they losing $1 they could've otherwise made? Yes they are. However, NHS directs more volume to them from their competitors. So in the case where only 2 or 3 generics compete (as is the case with AMCO), you effectively go from sharing the market to almost dominating it.
If you read the news, they'll spin the fact that the drug prices went up by 100% but will rarely if at all mention the dosage or the market prices of other drugs.
Bottom line is that its a WIN/WIN situation for both the Company doing the reformulation and NHS. That's how they save NHS money and why NHS has not cracked down on the practise.
Just my two cents.
CNInvesting wrote: Please enlighten us on how they operate. While you're at it also enlighten us on why what Concordia calls ''new products launches'' and what every long gets back to when talking organic growth happens to be just this:
Concordia International grows and diversifies its product portfolio through acquisitions and organic growth, pursuant to
which Concordia International has developed a pipeline of products, which consists of approximately 60 anticipated
product launches over the next three years, mostly in the form of in-licensed developments for molecules. This pipeline
consists of: (i) reformulations or new dosages of existing products, which are developed in-house, (ii) the launch of existing
products in new countries, and (iii) in-licensed products that reach across Concordia International’s various markets. visionaryfool wrote: I think you have to look deeper and understand how the NHS operates.
CNInvesting wrote: Spot on and that's exactly what they also mean by ''new products''. Looking back I also found these nice lines on what the company meant by their ''60 new products launch''. Quite the novelty they bring to the markets...