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Merck Goes Generic

MerckMerck (MRK) announced that it will be pursuing a “follow-on biologics” program through its Merck BioVentures Division.  Merck is signaling that it plans to manufacture and sell generic versions of the most popular biotech compounds on the market.  

Merck is expecting it can demonstrate the bioequivalence of its products without having to conduct expensive Phase III trials.  If this turns out to be true, this generic strategy could prove very profitable for Merck.

But at what expense?  It is interesting that Merck, long known for its R&D capabilities, has chosen a path of emulation over discovery.  Is this a signal that pharma’s innovative future is winding down, or is this simply a smart way to capitalize on a unique opportunity?

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December 10, 2008 - Posted by | Biotech, Pharma | , , ,

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