This is a good video. In a couple of my prior posts I have mentioned what Merck stated as earnings last year $460 million, which is maybe not what one would expect for a giant pharma company, but they do have cash. Pharma is jumping through a lot of ropes like the rest of us as the drive for saving money in healthcare continues. Everybody is on the same wagon and drinking the same beverage today it seems. Some industries though by comparison are much smaller in size and have a different focus in healthcare, and yet are yielding higher profits such as those who specialize in Part D and Senior Healthcare Benefit management with venture capital investments.
Bravo Health – Venture Capital Backed Medicare Senior Health HMO Carrier Sees Profits of 1 Billion for 2009
|Discussion about Merck layoffs|
It seems the tide with the economy and world wide changes occurring today are changing where the money and profits lie and perhaps some areas to be further explored. Some pharma companies have outsourced a lot of R and D, as well as reducing employees, as that seems to be in the news every week. We also have the drive with biosimilars, where Merck is also making a stand with a purchase last year.
“The terms "Biosimilar" or "Follow-on Biologic" refer to products that are marketed after expiration of patents, which are claimed to have similar properties to existing biologic products. Due to the complexity of biologics, a product can only be made that is similar, but not identical.” Merck and Teva have emerged as the preeminent players in pharma's race to develop FOBs.
On another frontier, there’s patent battles going on in the industry as well and Merck and Teva are involved in one such court case and there are many more ongoing with most all the pharmaceutical companies.
Listen to what Ed has to say here as he summarizes it pretty well. BD