Health Insurance Daily

Mixed Views On Impact Of Authorized Generics

Two competing groups disagree about the effect authorized generics will have on drug prices. An authorized generic is a brand drugmaker’s product repackaged and marketed under a different name through a subsidiary or third party.

A new analysis from the Generic Pharmaceutical Association shows authorized generics are causing a decrease in the number of companies competing to produce pharmaceuticals and reducing access to cheaper drugs.

The analysis states that authorized generics “significantly reduce incentives for independent generic firms to challenge invalid brand name patents and to develop non-infringing processes.” When authorized generics are marketed during the 180-day exclusivity period authorized under the Hatch-Waxman Act, they reduce incentives for generic firms to sell their own versions of the same drug, the researchers find.

This article can be viewed in its entirety at BenefitNews.com, August 3, 2006.

posted by Mike @ 8:07 PM