https://www.statnews.com/2020/01/12/venture-capitalist-alexis-borisy-bring-down-drug-prices/ … Does anybody understand why this business model hasn't been done before? (Develop new drugs that mimic the effects of other approved drugs; sell them at lower prices; make a profit by gaining market share.)
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Right, it's often profit maximizing to lower prices, & prices for particular drugs go down all the time. But you also don't want to get into a price war with your competitors who make substitute drugs, so if you can tacitly cooperate to keep prices high that is better.
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But how do they enforce that monopoly totally? I get that high barriers to entry are a thing, but I wouldn’t expect the regulatory barriers I know about to be high enough to fully protect against all price competition.
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