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Article: Brandless: Andrx reverses course and announces it is getting out of the brand name drug business to re-focus on generics.(PHARMACEUTICALS)
- Article from:
- South Florida CEO
- Article date:
- March 1, 2005
- Author:
CopyrightCOPYRIGHT 2005 CEO Publishing Group, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Pharmaceutical giant Andrx Corp. put the brakes on its attempt to develop and market brand name drugs after the unit it set up two years ago to lead the effort posted millions of dollars in losses last year. Now company executives say Andrx will go back to its profitable, core, generic drug business.
Brand name pharmaceuticals held the promise of higher profits--73 percent gross margins versus 47 percent for generic drugs, according to the Andrx annual report. Experts estimate the company spent millions of dollars to set up and maintain the brand name unit, and the Andrx board of directors hired a new CEO to lead the effort. But the profits never materialized, at ...