Replies to post #181803 on Biotech Values

[GrthzGd]

I think the key distinction is the use of resources, and I think it is a useful one. For example, an individual cab driver may charge exorbitant fees in the improbable event that his city takes it upon itself to limit the number of medallions, but not regulate cab fees. However, he starts rent seeking when, instead of figuring out ways to be a better cab driver, he devotes his time to organizing fellow cab drivers into an association that charges high member dues, and then which devotes most of those towards lobbying the city to keep the medallion system in place, constrict the medallions' supply, fight any fee cap, etc.

So, the behavior of RTRX does become rent seeking once it starts seeking to influence the FDA not to approve another treatment for the 20,000 Cysturia patients in the US, or starts filing specious petitions or lawsuits to extend its patent protection beyond the normal US duration of 20 years from when the patent was filed, etc.