It seems to me that the overall result would be other companies start manufacturing the generic and sell the drug for maybe 20% less than Martin and over time the price drops back down towards where it once started. In the meantime, this company either goes bankrupt or is sold off.
Or the government passes a law capping how much you can raise the price of a generic drug over so many years.
Or the government passes a law capping how much you can raise the price of a generic drug over so many years.