How do we induce companies to make these costly investments? Patents create a legal monopoly and hence the opportunity for monopoly profits In practice,only the top 30%of drugs pay for themselves Bhattacharya,Hyde and Tu-HealthEconomicsBhattacharya, Hyde and Tu – Health Economics How do we induce companies to make these costly investments?  Patents create a legal monopoly and hence the opportunity for monopoly profits  In practice, only the top 30% of drugs pay for themselves