Generic Drug Strategic Alliances: Competitive Opportunities And Antitrust Risks
- Topics:
- Acquisitions
- Tags:
- Antitrust,
- Business Operations,
- Corporate Law,
- FDLI,
- Management,
- Security,
- Strategic Alliance,
- Strategy
- Source:
- FDLI
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Overview: Generic drug firms face a myriad of competitive challenges. There are scores of strong competitors and an absence of significant entry barriers. Generic firms typically offer a significant number of products but lack the financial wherewithal, marketing depth, and financial resources of branded pharmaceutical firms. To better compete in this challenging environment; it increasingly uses strategic alliances. Although strategic alliances offer firms the promise of substantial efficiencies in terms of lower cost, better service, and faster introduction of generic drugs, on occasion they may raise antitrust concerns. Strategic alliances are more flexible and focused than a complete merger between two firms. With thoughtful planning and analysis, “generic-generic alliances” can be structured to provide efficiencies to both parties, enhance their competitive ability, and ultimately benefit consumers. This article explores the reasons for generic drug strategic alliances, examines the limited situations where competitive concerns may arise, and suggests ways to structure these alliances to avoid antitrust problems.
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Format: PDF | Size: 2,591KB | Date: Apr 2003 | Pages: 4
