Recall the application about drug companies behaving illegally to protect their patented drugs.Why would a company owning a drug patent that is about to expire pay a competitor $60 million to NOT produce a comparable drug?

Question

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The company owning the drug patent wants to avoid losing profits, which would happen if a competitor produced a comparable drug and offered it at a lower price once the patent expired. Paying the competitor not to produce the drug allows the company to maintain its market share and pricing power.

Recall the Application About Drug Companies Behaving Illegally to Protect