1. Degree of market monopoly: Patented products usually have a monopoly position in the market, because only patent holders can sell the products. This gives them more freedom in pricing, because in the absence of substitutes, consumers can only buy the product. On the contrary, generic products usually have many substitutes, so the price is under the pressure of market competition.
2.R&D costs and risks: The R&D costs of patented products are often much higher than those of non-patented products, and there are great commercial risks. Therefore, in terms of pricing, patent holders usually consider recovering R&D costs and obtaining a reasonable return on investment. The research and development cost and commercial risk of generic products are relatively low, so the pricing is more flexible.
3. Product life cycle: Due to the limitation of patent term, the life cycle of patented products is shorter than that of non-patented products. Therefore, in terms of pricing, patent holders can consider quickly recovering the R&D cost within the patent term and get a faster return on investment. Once the patent period expires, other companies can produce and sell the same products, and the competitive pressure will increase.