Call it Rathodics, Rathodology, Rathod-gineering, or Rathodistry; chances are high that you will find lot of useless things on this blog. Nevertheless, I thank you for visiting my blogsite, and hope you spend sometime reading the blogs and commenting on them. Further, you can visit me at http://www.unm.edu/~srathod

Tuesday, February 22, 2005

A Generic drug king in this patented drug market?

The Swiss pharmaceutical, Novartis AG, became the world's largest generic drug maker by agreeing to buy 100% of the German firm Hexal and 67.7% of Eon Labs, a US generic drugs company with strategic partnership with the German firm. This follows the acquisition of Slovenia's Lek in 2002 and Canada's Sabex last year by Novartis.

This seems to be a highly calculated move on part of Novartis, when most of the big pharmaceuticals are directing their products towards high margin drugs. Not to say that Novartis plans to abandon this highly profitable patented drugs market, but it seems that Novartis has found a tremendous potential on these off-patent drugs. Novartis aims to capture 10% of this currently $58 billion generic drugs market by 2010, which will be $93 billion by then.

Only time will tell, whether this gamble will pay off or not.


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