Pink Sheet is part of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By



Executive Summary

The shakeup underway in the generic drug industry may indirectly benefit drug wholesalers by reducing the number of suppliers and cutting back on large inventory demands. National Wholesale Druggist Association Chairman 1988-1989 Barry Krelitz commented on the high costs of carrying a number of generic products at the association's annual meeting on Oct. 15. Discussing the significance of third-party generic incentive programs, Krelitz pointed out that "while dollar sales of generic drugs may represent less that 10% of a wholesaler's prescription drug movement, it can constitute over 40% of prescription stockkeeping units." It is a challenge to the distribution system, Krelitz declared, "to convince managed care organizations to reduce the amount of duplication of generic products in their programs, while striving for the best health care outcome for the patient." While the NWDA chairman suggested working with managed care organizations to cut back on the number of generic stock required for cost reasons, the ongoing investigations by FDA, Congress and the Maryland U.S. Attorney may have the same effect for different purposes. Some of the larger branded lines are making the first moves in renewed promotion campaigns based on the quality and corporate stability themes. Lederle, for example, is undertaking a survey through Hill & Knowlton and the Gallop Poll to determine current attitudes toward the quality of generic drug products. The quality issue could be a potent one with elderly consumers on chronic medications. Michael Farmer, executive VP with a California demographic consulting firm called Age Wave, Inc., told an NWDA annual meeting seminar that his firm's research indicates that the senior market is a quality-driven segment. "Quality counts; they are willing to pay more, but they are sophisticated consumers -- the most sophisticated consumers in America," Farmer said.

You may also be interested in...

Part D Discount Liability Coming Into Focus: CMS Releases Drug Cost Data

Newly released Medicare Part D data sheds light on the sales hit that branded pharmaceutical manufacturers will face when the coverage gap discount program gets under way in 2011

FDA Skin Infections Guidance Spurs Debate On Endpoint Relevance

FDA appears headed for a showdown with clinicians and the pharmaceutical industry over the proposed new clinical trial endpoints for acute bacterial skin and skin structure infections, the guidance's approach for justifying a non-inferiority margin and proposed changes in the types of patients that should be enrolled in trials

Shire Hopes To Sow Future Deals With $50M Venture Fund

Specialty drug maker Shire has quietly begun scouting deals with a brand-new $50 million venture fund, the latest of several in-house investment arms to launch with their parent company's pipelines, not profits, as the measure of their worth




Ask The Analyst

Please Note: You can also Click below Link for Ask the Analyst
Ask The Analyst

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts