A pharmaceutical company that sets a price below cost on a new cholesterol medication in order to shut out competitors that may want to enter the market could be fined for predatory pricing.

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Predatory pricing is a strategy where a company sets prices below cost with the intention to eliminate competition or deter new entrants, which can be considered anti-competitive behavior and is illegal under antitrust laws in many jurisdictions.

A Pharmaceutical Company That Sets a Price Below Cost on a New