SPOTLIGHT: Merck strategy threatens generic makers

Here's a good analysis from the AP on the recent Merck deal to cut the price of Zocor to a lower level than an upcoming generic. The concern is that big pharma can undercut generic makers if they simply cut the price of their name brand drug to less than that of a new competitor. Long-term, that could inflict serious damage to the generic business. But there's no denying that patients--and insurers--make out fine in the price war. And it's likely to be less controversial than paying off generic manufacturers to leave their monopolies alone. Report