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The Good (Celgene) and Bad (Biogen) Ways to Deliver Drug Revenue Growth

There's a good way and a bad way for biotech companies to deliver revenue growth.

The good way is to convince doctors to prescribe a drug more frequently, thereby increasing the volume of drug sold.

The bad way is to raise the price of a drug to offset declines in the volume, or amount, of drug sold.

It should be obvious why volume-based revenue growth is preferred over growth driven by price increases. The former means user demand for a drug and its market share are...


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