Friday, October 02, 2009

Vaccines: The New Pharma Strategy

Tuesday's Wall Street Journal featured an article that confirms that creativity is still alive in the pharmaceutical sector.

Faced with an impending US government takeover of health care, drug makers are focusing on vaccines.

It's a very logical move. If you're going to research, produce and market drugs, why settle for those, the value of which can be debated, because they contribute to easing disease.

Vaccines are a much more binary sort of thing. It's an all or none proposition, and, for certain at-risk groups, there's no alternative.

If the drugs are marketed from outside the US, there's a much better chance these companies can maintain profit margins and price levels on vaccines than on conventional drug products.

Even with government action threatening most of the workings of the pharmaceutical sector, it's good to see that they are still thinking ahead and targeting the most profitable areas of their markets. Those with the highest price inelasticities.

If they didn't, you can forget even seeing vaccines like these appearing to aid consumers who will be at risk.

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