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1. The Golden Goose: High-Margin Injectables

Injectable biologics are the crown jewels of the
pharmaceutical industry. Drugs like Humira
(adalimumab), Enbrel (etanercept), and Keytruda
(pembrolizumab) generate tens of billions of dollars
annually—not because they’re difficult to discover, but
because they’re difficult to replace.

Their profitability comes not from their cost of production,
but from the moats built around them:

● Complexity of manufacturing that deters
biosimilar competition.
● Specialized delivery systems that require
injections, hospital administration, or cold-chain
logistics.
● Regulatory hurdles that slow market entry for
challengers.
● Physician familiarity and payer contracts that
lock in prescribing behavior.

These layers of complexity are not incidental—they are
strategic. They allow companies to price a single injection
at $3,000 or more, shielded by the high barriers required to
compete.

Meanwhile the material cost of the drug itself typically
accounts for less than 5% of the biologics list price.

In other words, the business model isn’t just about the
drug—it’s about the fortress surrounding it.

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