if you can’t beat ’em… get paid by ’em

Until May 2015, Par's generic form of Kapvay (clonidine hydrochloride) was the only generic version available in the U.S., even though Concordia also had the rights to market a competing generic.

Drug Companies Agreed To Not Compete, Resulting In High Price For Generic Medication

Imagine that Bob and Mary are the only two kids in town allowed to sell lemonade. They could try to compete against each other, potentially resulting in lower prices, improved juice, or better service… or Mary could say to Bob, “How’s about you pay me some money so I don’t exercise my option to sell lemonade?” That means the price for lemonade is whatever Bob says it is, and he’s encouraged to keep it high because he’s paying some of that money out to Mary. Now imagine this isn’t about lemonade, but about prescription drugs. [More]