When a pharmaceutical company charges a high price for a medication before the original patent expires the company has achieved?

When a pharmaceutical company charges a high price for a medication before the original patent expires, the company typically has achieved “patent rent”—often described as extracting monopoly profits during the remaining period of market exclusivity created by the patent.

That pricing power comes from the fact that, until the patent expires (and any related exclusivity periods end), competitors generally can’t legally market generic or biosimilar versions, so the brand manufacturer can set prices that competitors would not be able to sustain.

Sources: None provided.