
Why the $300 generic EpiPen will just extend Mylan's profitability - thegeneralist
http://www.perfectprice.io/blog/pricing-science-behind-why-generic-epipen-will-just-extend-mylan-profitability
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niftich
Good writeup about dynamic pricing.

I see analogues to some store-brand items that are in fact made by a big brand
using its excess production capacity, or a family of brands that has similar-
but-distinct products at different price points.

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thegeneralist
True, though a key difference is retailers (Walmart especially) aggressively
negotiate against manufacturers to lower prices. For high end manufactured
brands sold in retail, like soap, trash bags, etc., store brands are created
by competing manufacturers in part to add negotiating leverage against a P&G
or other major manufacturer. And there are few CPG categories without
significant competition.

With pharmaceuticals, production capacity is hardly an issue. It will,
ironically, cost Mylan _more_ to make the "generic" new brand (pay for new
branding, packaging, etc.) than it will to make and package the existing
brand.

