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.

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Source: Fool.com