There will be no feeding frenzy; researching an alternative is a fixed cost, but with a competitor they will only be able to sell the drug for marginal cost. The upstart competitor would make more money investing the fixed cost amounts in treasuries at 1%.

(This is a joke; when there are just two companies they price-fix rather than compete. Not with actual price-fixing agreements, instead tit for tat signaling as in the iterated prisoner's dilemma)