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Monopoly corrupts. Absolute monopoly corrupts absolutely.





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Competition from generic drugs

The Economist has a piece on a generic pharmaceutical maker challenging the patent holder. (linked here) Apotex, a Canadian generic firm, was coming out with its version of Plavix, a lucrative blood thinner. Sanofi-Aventis held the patent supposedly good till 2012 and marketed in the US through Bristol-Myers Squibb. Perhaps fearing the patent wouldn't hold up, Apotex was bought off until state Attorneys-General intervened, ending the deal, but still leading to a federal criminal investigation. Apotex went ahead and Sanofi responded by cutting the price of regular Plavix below the generic. The blessings of competition.

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