Pharmaceutical companies generate revenue primarily through the sale of prescription drugs, over-the-counter medications, and biologics. Revenue streams also include:
1. Patented Drugs: These are newly developed drugs protected by patents, providing exclusive rights to sell the product for a certain period. 2. Generic Drugs: Once a patent expires, other companies can produce and sell generic versions, which are typically sold at lower prices. 3. Biosimilars: These are similar to biologic drugs that have lost patent protection. They offer a new revenue stream by providing more affordable options. 4. Contract Manufacturing: Some companies generate revenue by manufacturing drugs for other pharmaceutical companies.