Building a Fortress with Patents
So, how do they get away with it? The answer is the patent. A patent is not just a piece of paper, it is a legal fortress built around a blockbuster drug. For years, it grants a company a complete monopoly, allowing them to set prices without the pesky inconvenience of competition. Consider the billions poured into research and development. It’s a high stakes gamble where most bets fail, but the few that pay off do so spectacularly.
Companies like Pfizer, GSK, and Sanofi are masters of this game. They have portfolios packed with these patented moneymakers, each one a testament to their ability to innovate and, crucially, to defend their turf. This pricing power isn't an accident, it's the calculated result of a very deliberate, long term strategy.