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What is pricing power?
How is it relevant in the Pharma Industry?
A thread.
How is it relevant in the Pharma Industry?
A thread.
This is how a typical transaction looks like. At the confluence of Pain and Pleasure, you have a transaction.
Now, what happens if we change both sides of the equation a slight bit?
Now, what happens if we change both sides of the equation a slight bit?
Naval Ravikant once said -
The only difference between a healthy person and a sick person is, the healthy person may want a million things but the sick person wants only one.
Having said that, letâs look at the other part of the equation here.
The only difference between a healthy person and a sick person is, the healthy person may want a million things but the sick person wants only one.
Having said that, letâs look at the other part of the equation here.
Think of a sick person on the left and medicines on the right, the transaction then becomes irrational. This gives disproportionate pricing power.
Also, how does pricing power evolve?
Also, how does pricing power evolve?
Wherever we see there's a difference between the Consumer and the Customer, information asymmetry is created and that again gives the producer an upper hand.
If you're free this Saturday, join me in an hour-long webinar wherein we shall discuss a few elements of the API industry with a specific focus on Solara Active Pharma Sciences, a niche small-cap API play.
https://saketmehrotra.com/from-david-to-goliath-solara-active-pharma-sciences/
Click here to register - https://rzp.io/l/GlLLiS6
https://saketmehrotra.com/from-david-to-goliath-solara-active-pharma-sciences/
Click here to register - https://rzp.io/l/GlLLiS6
I am writing a detailed two-part post on the pharma landscape here, subscribe to read ahead.
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https://betatoalpha.substack.com/
#newsletter #betatoalpha #equity
@finbloggers
@FinMedium
@dmuthuk
@Gautam__Baid
