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March 15, 2009


Sorry to ask such a stupid question, but I don't get the point of this legislation--it appears that it would only help generic manufacturers compete with innovator companies who are trying to break into the generic market, possibly with their own generic version of their own innovative biologic. Right? I don't understand who else it would help--unless the argument is that patients are better served by a generic manufacturer who is not the innovator, because maybe their prices would be lower--but then why not put a price cap on generics (or innovative biologics). (????)


I believe the thinking behind this legislation is that an innovator company, which used its exclusivity period to market a therapeutic, would be able to use this brand recognition to retain a large portion of the market once the exclusivity period ends (i.e., patients might be more willing to use the innovator's generic drug than the generic company's version of the drug). As a result, generic companies might be less willing to take on innovators (or fewer generic companies might be willing to do so), which ultimately would reduce generic competition. Thanks for the comment.


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