There is a perverse incentive by the drug companies to encourage more expensive regulation, both to keep competitors out but also to justify their higher prices. Efficient markets drives prices down to the point the participants end up only making average returns on investments, regulation is one of those tricks that can help reliably maintain above average returns. Like the children's fable; 'please don't throw me into the briar patch'.
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There is a perverse incentive by the drug companies to encourage more expensive regulation, both to keep competitors out but also to justify their higher prices. Efficient markets drives prices down to the point the participants end up only making average returns on investments, regulation is one of those tricks that can help reliably maintain above average returns. Like the children's fable; 'please don't throw me into the briar patch'.