Generics, Biosimilars, and the Ethics of Pricing Pharmaceuticals

Recent price hikes by pharmaceutical companies underscore the importance of competition in an industry that often sets prices according to what the market will bear. A steady pipeline of generics and biosimilars is the surest check to the rising prices of drugs and biologics. However, this pipeline has regularly failed to keep pace with the expiration of name-brands' periods of exclusivity. Thus, we must rely, in part, upon good ethical practices when it comes to the pricing of life-saving therapeutics.