A Precarious Union: Combining Proprietary and Generic Businesses
Executive Summary
The major generics companies, flush with cash from the recent plethora of patent expirations, are all forging ahead in the proprietary business in order to boost margins and even out the volatile revenues and earnings inherent in their core business. They're pursuing, by and large, strategies that don't take them far from their core expertise and involve reformulating known compounds. Some companies have had moderate success, but weaving together two such disparate businesses is a challenge.
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