Pfizer Exposes the Sordid Underbelly of Drug Prices
Johnson & Johnson's (NYSE: JNJ) one of the largest drugmakers in the world, and according to a lawsuit Pfizer (NYSE: PFE) has filed, it's leveraging its size to negotiate contracts that prevent insurers from paying for cheaper biosimilars to Remicade, its best-selling drug. Pfizer's suit reveals the lengths to which drugmakers are going to keep sales flowing in from drugs even after patents expire, so let's take a closer look to see what's at stake.
Patents protect drugmakers from generic competition. However, once patents expire, competitors are free to develop copycats that are equally as safe and effective.
Source: Fool.com
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