Mergers

Mergers and Monopolies

Abstract

It is said that many different countries are working to make their accounting standards more convergent and standard such as Australia and the U.S and they actually appear to be diverging. Us, and Australia seem to have similar systems of government who utilize significantly disparate style of accounting due to differing philosophies regarding government accounting.

Mergers and Monopolies

Example 1

The reason I think that drug makers want to stymie generic competition is because the generic drug is the most popular right now. To many companies the generic competition is like a bad virus. Not only are you saving a little money with the drug and the drug right now makes up more than 70% of prescriptions in the U.S right now and as health plans have it payers and the pharmacies are actually benefiting from this by promoting these less costly bioequivalent prescriptions as a way to reduce health care costs and to get people access to important treatments. And because the United States is so similar to Australia, they are doing it in that country as well. In the first year a generic competitor goes on the market, and a brand name drug loses on average more than half of what its market share is and the price drops with each new generic company that may produce a copycat drug.

One of the main goals of the landmark drug price competition in both countries is to maintain the balance between encouraging generic product development coming up and to provide incentives for innovation.

With generic prescriptions or any new business the companies face a variety of entry barriers that must be oversaw or they must adapt to in order for that business to gain a foothold within any marketplace. Entry barriers are said to be the result of competitive behavior by existing companies within the marketplace. There is really no limit to the barriers that a specific company may face.

High entry barriers present a difficult challenge when it...