---
title: "Meaning & Key Takeaway of: The key to the generic-drug economic…"
description: "\"The key to the generic-drug economic model is to keep entry prices low enough to attract multiple competitors.\" — Scott Gottlieb"
image: "https://sms4smile.com/quotes/i/788/scott-gottlieb-6147_competitors_the-key-to-the-generic-drug-economic-mod_2583732.jpg"
---

#  The key to the generic-drug economic model is to keep…

![“The key to the generic-drug economic model is to keep entry prices low enough to attract multiple competitors.” quote by Scott Gottlieb](https://sms4smile.com/quotes/i/788/scott-gottlieb-6147_competitors_the-key-to-the-generic-drug-economic-mod_2583732.jpg)   [Download](https://sms4smile.com/quotes/i/788/scott-gottlieb-6147_competitors_the-key-to-the-generic-drug-economic-mod_2583732.jpg) [Open image](https://sms4smile.com/quotes/i/788/scott-gottlieb-6147_competitors_the-key-to-the-generic-drug-economic-mod_2583732.jpg)

> “The key to the generic-drug economic model is to keep entry prices low enough to attract multiple competitors.”

[Scott Gottlieb](https://sms4smile.com/quotes/author/scott-gottlieb/)

## About This Quote

This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.

Keeping drug entry prices low encourages many firms to compete, driving down costs for consumers.

**In simple terms:** Low prices invite competition.

Key Takeaway

Set affordable price caps.

Themes

health economics competition pharmaceuticals

Mood

pragmatic analytical

Type

policy economic

When to use this quote

- Hospital procurement
- insurance negotiations
- policy formulation

Key Concepts

Market entry price regulation generic drugs

Questions to Reflect On

- How can we balance affordability with R&D investment?
- What policies ensure sustainable competition?

A Different Perspective

May reduce incentives for innovation.

★ ★ ★ ★ ★   No ratings yet

## Related quotes

> [The higher cost of getting a generic drug approved by regulators means that many old medicines don't face competitors. It's only after substantial price…](https://sms4smile.com/quotes/scott-gottlieb/the-higher-cost-of-getting-a-generic-drug-approved-by-regulators/)

[Scott Gottlieb](https://sms4smile.com/quotes/author/scott-gottlieb/)

> [The value that the generic drug industry brings to the U.S. healthcare system is indisputable.](https://sms4smile.com/quotes/heather-bresch/the-value-that-the-generic-drug-industry-brings-to-the-u-s-healthcare/)

[Heather Bresch](https://sms4smile.com/quotes/author/heather-bresch/)

> [We should look for ways to expedite generic drug approvals, particularly for products that have a long history of being safe and effective.](https://sms4smile.com/quotes/amy-klobuchar/we-should-look-for-ways-to-expedite-generic-drug-approvals/)

[Amy Klobuchar](https://sms4smile.com/quotes/author/amy-klobuchar/)

> [I am deeply troubled by Mylan's misclassification of the EpiPen as a generic drug.](https://sms4smile.com/quotes/amy-klobuchar/i-am-deeply-troubled-by-mylan-s-misclassification-of-the-epipen-as-a/)

[Amy Klobuchar](https://sms4smile.com/quotes/author/amy-klobuchar/)

> [After operating in three diverse markets, we have determined ShopHouse hasn't demonstrated an attractive unit economic model.](https://sms4smile.com/quotes/steve-ells/after-operating-in-three-diverse-markets-we-have-determined-shophouse/)

[Steve Ells](https://sms4smile.com/quotes/author/steve-ells/)

> [Our economic model allows us to invest a disproportionate amount in our food costs. We have a very efficient system: customers go through a…](https://sms4smile.com/quotes/steve-ells/our-economic-model-allows-us-to-invest-a-disproportionate-amount-in/)

[Steve Ells](https://sms4smile.com/quotes/author/steve-ells/)

> [The reality is sometimes markets don't exist for very good reasons. It might be that there isn't a deep customer need. Or the economic…](https://sms4smile.com/quotes/scott-d-anthony/the-reality-is-sometimes-markets-don-t-exist-for-very-good-reasons-it/)

[Scott D. Anthony](https://sms4smile.com/quotes/author/scott-d-anthony/)

> [The free enterprise concept inherent in the economic model of capitalism should mean common people, or lower and middle class wage-earners, have greater potential…](https://sms4smile.com/quotes/james-morcan/the-free-enterprise-concept-inherent-in-the-economic-model-of/)

[James Morcan](https://sms4smile.com/quotes/author/james-morcan/)

> [Unlike Hegel's progress model of history, which moves by stages, each containing its own logic of growth and decline, the economic model develops as…](https://sms4smile.com/quotes/john-carroll/unlike-hegel-s-progress-model-of-history-which-moves-by-stages-each/)

[John Carroll](https://sms4smile.com/quotes/author/john-carroll/)

> [I don't put Tesla in the Amazon category. They have not proved to me that, as a financial model and an economic model, it…](https://sms4smile.com/quotes/stanley-druckenmiller/i-don-t-put-tesla-in-the-amazon-category-they-have-not-proved-to-me/)

[Stanley Druckenmiller](https://sms4smile.com/quotes/author/stanley-druckenmiller/)

> [The corporatist-economic model of society appears to be governing us. Economists, often in the pay of transnationals, are deciding, for us, what democracy is,…](https://sms4smile.com/quotes/b-w-powe/the-corporatist-economic-model-of-society-appears-to-be-governing-us/)

[B. W. Powe](https://sms4smile.com/quotes/author/b-w-powe/)

> [The economic model was formed by the constraints that I had: a small space, relatively inexpensive building materials, relatively inexpensive investment, a very efficient…](https://sms4smile.com/quotes/steve-ells/the-economic-model-was-formed-by-the-constraints-that-i-had-a-small/)

[Steve Ells](https://sms4smile.com/quotes/author/steve-ells/)

> [I think ultimately Obama's ability to rebuild America's image in the world will depend less on his personal good will and more his ability…](https://sms4smile.com/quotes/peter-beinart/i-think-ultimately-obama-s-ability-to-rebuild-america-s-image-in-the/)

[Peter Beinart](https://sms4smile.com/quotes/author/peter-beinart/)

> [There's a certain kind of academic that comes to Washington and can't survive. They're the ones starting each sentence with 'The economic model says.'](https://sms4smile.com/quotes/austan-goolsbee/there-s-a-certain-kind-of-academic-that-comes-to-washington-and-can-t/)

[Austan Goolsbee](https://sms4smile.com/quotes/author/austan-goolsbee/)

> [It doesn't have the ability to think rationally this economic model. It thinks like a drug addict: 'Where can I get my next fix?'…](https://sms4smile.com/quotes/naomi-klein/it-doesn-t-have-the-ability-to-think-rationally-this-economic-model/)

[Naomi Klein](https://sms4smile.com/quotes/author/naomi-klein/)

## More by Scott Gottlieb

> [Obamacare mandates a largely uniform structure and set of benefits and insurance design across the entire country. It leaves consumers with very little real…](https://sms4smile.com/quotes/scott-gottlieb/obamacare-mandates-a-largely-uniform-structure-and-set-of-benefits/)

[Scott Gottlieb](https://sms4smile.com/quotes/author/scott-gottlieb/)

> [What makes the EpiPen unique is its delivery vehicle - an auto-injector that's packaged in a convenient, pen-like device. The product's key attribute is…](https://sms4smile.com/quotes/scott-gottlieb/what-makes-the-epipen-unique-is-its-delivery-vehicle-an-auto-injector/)

[Scott Gottlieb](https://sms4smile.com/quotes/author/scott-gottlieb/)

> [It's now evident that public health is part of national security.](https://sms4smile.com/quotes/scott-gottlieb/it-s-now-evident-that-public-health-is-part-of-national-security/)

[Scott Gottlieb](https://sms4smile.com/quotes/author/scott-gottlieb/)

> [We need to make sure that access to a curative drug doesn't become a yardstick by which poverty is eventually measured. Doing so requires…](https://sms4smile.com/quotes/scott-gottlieb/we-need-to-make-sure-that-access-to-a-curative-drug-doesn-t-become-a/)

[Scott Gottlieb](https://sms4smile.com/quotes/author/scott-gottlieb/)

> [When the price of a drug rises, it becomes profitable and the target of new competition.](https://sms4smile.com/quotes/scott-gottlieb/when-the-price-of-a-drug-rises-it-becomes-profitable-and-the-target/)

[Scott Gottlieb](https://sms4smile.com/quotes/author/scott-gottlieb/)

> [Once an effective drug is approved to treat a deadly condition, introducing a second drug to treat the same disease can be hard. It's…](https://sms4smile.com/quotes/scott-gottlieb/once-an-effective-drug-is-approved-to-treat-a-deadly-condition/)

[Scott Gottlieb](https://sms4smile.com/quotes/author/scott-gottlieb/)

> [At the heart of President Barack Obama's health-care plan is an insurance program funded by taxpayers, administered by Washington, and open to everyone. Modeled…](https://sms4smile.com/quotes/scott-gottlieb/at-the-heart-of-president-barack-obama-s-health-care-plan-is-an/)

[Scott Gottlieb](https://sms4smile.com/quotes/author/scott-gottlieb/)

> [There are two main types of immunity to an infection. Innate immunity comes from circulating cells that attack any invader the body views as…](https://sms4smile.com/quotes/scott-gottlieb/there-are-two-main-types-of-immunity-to-an-infection-innate-immunity/)

[Scott Gottlieb](https://sms4smile.com/quotes/author/scott-gottlieb/)

> [A seductive technology that works like a dream and improves lives will set off a consumer clamor, whether the new tool is an iPhone…](https://sms4smile.com/quotes/scott-gottlieb/a-seductive-technology-that-works-like-a-dream-and-improves-lives/)

[Scott Gottlieb](https://sms4smile.com/quotes/author/scott-gottlieb/)

> [Our Founders thought politicians should be accountable when it comes to citizens' right to life, liberty and the pursuit of heart surgery.](https://sms4smile.com/quotes/scott-gottlieb/our-founders-thought-politicians-should-be-accountable-when-it-comes/)

[Scott Gottlieb](https://sms4smile.com/quotes/author/scott-gottlieb/)

> [Trying to stretch the mission of a health program like Medicaid, as a way to launder redistributionist goals, ends up serving nobody well.](https://sms4smile.com/quotes/scott-gottlieb/trying-to-stretch-the-mission-of-a-health-program-like-medicaid-as-a/)

[Scott Gottlieb](https://sms4smile.com/quotes/author/scott-gottlieb/)

> [Rather than redistribute physician income as a way to subsidize an expansion of government control, Mr. Obama should fix the payment system to align…](https://sms4smile.com/quotes/scott-gottlieb/rather-than-redistribute-physician-income-as-a-way-to-subsidize-an/)

[Scott Gottlieb](https://sms4smile.com/quotes/author/scott-gottlieb/)

> [The ability of working class Americans to bargain for health coverage at work gave them access to the same basic packages of benefits as…](https://sms4smile.com/quotes/scott-gottlieb/the-ability-of-working-class-americans-to-bargain-for-health-coverage/)

[Scott Gottlieb](https://sms4smile.com/quotes/author/scott-gottlieb/)

> [Historical records show that smallpox was a human scourge for thousands of years. The virus produces high fever, severe back pain and scarring eruptions…](https://sms4smile.com/quotes/scott-gottlieb/historical-records-show-that-smallpox-was-a-human-scourge-for/)

[Scott Gottlieb](https://sms4smile.com/quotes/author/scott-gottlieb/)

> [While faulty information from a digital health tool can influence people to make bad decisions, the risks are far lower than those posed by…](https://sms4smile.com/quotes/scott-gottlieb/while-faulty-information-from-a-digital-health-tool-can-influence/)

[Scott Gottlieb](https://sms4smile.com/quotes/author/scott-gottlieb/)

[Explore all 100 Scott Gottlieb quotes ](https://sms4smile.com/quotes/author/scott-gottlieb/)

## More Competitors quotes

> [Talented people can predict with great accuracy what's about to happen just a tiny bit ahead of their competitors. It might be two seconds…](https://sms4smile.com/quotes/kevin-maney/talented-people-can-predict-with-great-accuracy-what-s-about-to/)

[Kevin Maney](https://sms4smile.com/quotes/author/kevin-maney/)

> [You want to remain hungry and stay in a good place as a competitor; at the same time, you want to be confident but…](https://sms4smile.com/quotes/lamar-odom/you-want-to-remain-hungry-and-stay-in-a-good-place-as-a-competitor-at/)

[Lamar Odom](https://sms4smile.com/quotes/author/lamar-odom/)

> [Sports have always been a huge part of my life and my conversations. It is a thrill and an honor to be a part…](https://sms4smile.com/quotes/summer-sanders/sports-have-always-been-a-huge-part-of-my-life-and-my-conversations/)

[Summer Sanders](https://sms4smile.com/quotes/author/summer-sanders/)

> [Business is always a struggle. There are always obstacles and competitors. There is never an open road, except the wide road that leads to…](https://sms4smile.com/quotes/chris-kirubi/business-is-always-a-struggle-there-are-always-obstacles-and/)

Chris Kirubi

> [Every coercive monopoly was created by government intervention into the economy: by special privileges, such as franchises or subsidies, which closed the entry of…](https://sms4smile.com/quotes/ayn-rand/every-coercive-monopoly-was-created-by-government-intervention-into/)

[Ayn Rand](https://sms4smile.com/quotes/author/ayn-rand/)

> [As they grow, companies saturate their markets, become more complex and difficult to manage, and face larger and more entrenched competitors.](https://sms4smile.com/quotes/alex-berenson/as-they-grow-companies-saturate-their-markets-become-more-complex-and/)

[Alex Berenson](https://sms4smile.com/quotes/author/alex-berenson/)

> [If you want to gain market share at your competitor's expense - look for a customer that's suffering from too much complexity and simplify…](https://sms4smile.com/quotes/peter-cohan/if-you-want-to-gain-market-share-at-your-competitor-s-expense-look/)

Peter Cohan

> [I learn from all our major competitors, whether they're in or out of the U.S. Wells Fargo is very actively, very aggressively, and very…](https://sms4smile.com/quotes/jamie-dimon/i-learn-from-all-our-major-competitors-whether-they-re-in-or-out-of/)

[Jamie Dimon](https://sms4smile.com/quotes/author/jamie-dimon/)

> [Many manufacturers secretly question whether advertising really sells their product, but are vaguely afraid that their competitors might steal a march on them if…](https://sms4smile.com/quotes/david-ogilvy/many-manufacturers-secretly-question-whether-advertising-really-sells/)

[David Ogilvy](https://sms4smile.com/quotes/author/david-ogilvy/)

> [I've got to know my strength and weaknesses and the same for my competitors.](https://sms4smile.com/quotes/caroline-buchanan/i-ve-got-to-know-my-strength-and-weaknesses-and-the-same-for-my/)

[Caroline Buchanan](https://sms4smile.com/quotes/author/caroline-buchanan/)

> [As a competitor and an athlete, you love that you get to go back and challenge someone, especially the world champs.](https://sms4smile.com/quotes/tony-romo/as-a-competitor-and-an-athlete-you-love-that-you-get-to-go-back-and/)

[Tony Romo](https://sms4smile.com/quotes/author/tony-romo/)

> [We can never have too much preparation and training. We must be a strong competitor. We must adhere staunchly to the basic principle that…](https://sms4smile.com/quotes/ralph-bunche/we-can-never-have-too-much-preparation-and-training-we-must-be-a/)

[Ralph Bunche](https://sms4smile.com/quotes/author/ralph-bunche/)

> [Even in the face of massive competition, don't think about the competition. Literally don't think about them. Every time you're in a meeting and…](https://sms4smile.com/quotes/mike-mccue/even-in-the-face-of-massive-competition-don-t-think-about-the/)

[Mike McCue](https://sms4smile.com/quotes/author/mike-mccue/)

> [In the United States businessmen often do not trust their colleagues. If you trust your colleague today, he may be your competitor tomorrow, because…](https://sms4smile.com/quotes/akio-morita/in-the-united-states-businessmen-often-do-not-trust-their-colleagues/)

[Akio Morita](https://sms4smile.com/quotes/author/akio-morita/)

> [We're not competitor obsessed, we're customer obsessed. We start with the customer and we work backwards.](https://sms4smile.com/quotes/jeff-bezos/we-re-not-competitor-obsessed-we-re-customer-obsessed-we-start-with/)

[Jeff Bezos](https://sms4smile.com/quotes/author/jeff-bezos/)

Browse all 613 Competitors quotes

```json
{
    "@context": "https://schema.org",
    "@graph": [
        {
            "@type": "Quotation",
            "text": "The key to the generic-drug economic model is to keep entry prices low enough to attract multiple competitors.",
            "creator": {
                "@type": "Person",
                "name": "Scott Gottlieb"
            },
            "isPartOf": {
                "@id": "https://sms4smile.com/quotes/#website"
            },
            "url": "https://sms4smile.com/quotes/scott-gottlieb/the-key-to-the-generic-drug-economic-model-is-to-keep-entry-prices/",
            "about": {
                "@type": "Thing",
                "name": "Competitors"
            },
            "@id": "https://sms4smile.com/quotes/scott-gottlieb/the-key-to-the-generic-drug-economic-model-is-to-keep-entry-prices/#quotation",
            "image": {
                "@type": "ImageObject",
                "@id": "https://sms4smile.com/quotes/i/788/scott-gottlieb-6147_competitors_the-key-to-the-generic-drug-economic-mod_2583732.jpg",
                "contentUrl": "https://sms4smile.com/quotes/i/788/scott-gottlieb-6147_competitors_the-key-to-the-generic-drug-economic-mod_2583732.jpg",
                "url": "https://sms4smile.com/quotes/i/788/scott-gottlieb-6147_competitors_the-key-to-the-generic-drug-economic-mod_2583732.jpg",
                "width": 1080,
                "height": 1080,
                "caption": "“The key to the generic-drug economic model is to keep entry prices low enough to attract multiple competitors.” — Scott Gottlieb",
                "creditText": "SMS4Smile Quotes",
                "creator": {
                    "@id": "https://sms4smile.com/quotes/#organization"
                }
            }
        },
        {
            "@type": "BreadcrumbList",
            "itemListElement": [
                {
                    "@type": "ListItem",
                    "position": 1,
                    "name": "Home",
                    "item": "https://sms4smile.com/"
                },
                {
                    "@type": "ListItem",
                    "position": 2,
                    "name": "Quotes",
                    "item": "https://sms4smile.com/quotes/"
                },
                {
                    "@type": "ListItem",
                    "position": 3,
                    "name": "Scott Gottlieb",
                    "item": "https://sms4smile.com/quotes/author/scott-gottlieb/"
                },
                {
                    "@type": "ListItem",
                    "position": 4,
                    "name": "The key to the generic-drug economic...",
                    "item": "https://sms4smile.com/quotes/scott-gottlieb/the-key-to-the-generic-drug-economic-model-is-to-keep-entry-prices/"
                }
            ],
            "@id": "https://sms4smile.com/quotes/scott-gottlieb/the-key-to-the-generic-drug-economic-model-is-to-keep-entry-prices/#breadcrumb"
        },
        {
            "@type": "WebSite",
            "@id": "https://sms4smile.com/quotes/#website",
            "name": "SMS4Smile Quotes",
            "url": "https://sms4smile.com/quotes/",
            "publisher": {
                "@id": "https://sms4smile.com/quotes/#organization"
            }
        },
        {
            "@type": "Organization",
            "@id": "https://sms4smile.com/quotes/#organization",
            "name": "SMS4Smile Quotes",
            "url": "https://sms4smile.com/quotes/",
            "logo": {
                "@type": "ImageObject",
                "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png",
                "width": 512,
                "height": 512
            }
        }
    ]
}
```