Chain vertical integration?
Executive Summary
With ANDA bill under serious consideration to allow easier access to generic approvals for the Rx drugs first approved in the U.S. between the years 1962-1981, a logical step for the next wave of chain drug acquisitions may be generic drug producers. Some observers estimate that 125 Rx drugs will be available for generic approvals from FDA if the bill is passed. That quantity for drugs should make vertical integration into production more attractive to chains. Some, such as Revco, already have a head start in that area.