In some ways, it was the corporate world equivalent of the infamous baptism scene in Francis Ford Coppola’s The Godfather, when, in a single 24 hours, the newly anointed don of the Corleone family executed a plan to simultaneously eliminate rivals in La Cosa Nostra.
In this case, however, the family was made up of generic-drug makers Teva Pharmaceuticals, Mylan, Actavis, Lupin, Novartis’ Sandoz, Taro Pharmaceuticals and others. On a single day, Friday, April 2014, the scheme hiked the price on 22 generic drugs—ranging from cephalexin, a bacterial infection antibiotic, which jumped 185%, to ketoconazole cream, used to combat athletes foot and jock itch, which jumped 110%, to diflunisal, an anti-inflammatory, up as much as 182%.
In annals of marketing, their concerted action was impressive. The move rubbed out price competition and profit erosion in an industry plagued by them—and created a windfall for those in on the game.
…continue reading ‘Move Over, Martin Shkreli’
Be the first to like.
Forbes