Featured Product
This Week in Quality Digest Live
FDA Compliance Features
Matthew M. Lowe
Don’t wait until something bad happens to make a change
Kari Miller
A lack of integration hampers quality compliance across a product’s life cycle
Etienne Nichols
A well-defined CAPA program is a framework for quality and effectiveness
Grant Ramaley
IAF CertSearch now mandatory for accredited certification bodies
Etienne Nichols
What’s the difference?

More Features

FDA Compliance News
Creates one of the most comprehensive regulatory SaaS platforms for the industry
Company’s first funding round will be used to accelerate product development for its QMS and MES SaaS offerings
Showcasing tech, solutions, and services at Gulfood Manufacturing 2022
Easy, reliable leak testing with methylene blue
Now is not the time to skip critical factory audits and supply chain assessments
Google Docs collaboration, more efficient management of quality deviations
Delivers time, cost, and efficiency savings while streamlining compliance activity
First trial module of learning tool focuses on ISO 9001 and is available now
Free education source for global medical device community

More News

Quality Digest

FDA Compliance

Generic Drugs Can Lead to Lower Prices

Published: Monday, July 24, 2006 - 22:00

Authorized generic drugs can lead to lower medicine prices and overall savings to the health care system, according to a new study commissioned by the Pharmaceutical Research and Manufacturers of America and prepared by IMS Consulting. An authorized generic is a drug that is distributed by a generics company with permission from the brand-name company. It can compete in the market during the 180-day exclusivity period awarded to generics companies that succeed in breaking a brand drug’s patent before it expires.

The investigation examined case studies with and without generics, and found that with an authorized generic on the market during the exclusivity period, discounts to brand medications were greater—on average, 15.8 percentage points greater—than instances when a generics company didn’t face competition from an authorized generic. It also found that even after the 180-day exclusivity period, authorized generics help save the health care system $212.8 million across the nine case studies examined during the six-month exclusivity period.

“Authorized generics increase competition and result in lower prices for consumers and the overall health care system,” says Lori Reilly, PhRMA’s vice president for policy and research. “That’s win-win for patients.”

For more information, visit www.phrma.org/files/IMS%20Authorized%20Generics%20Report_6-22-06.pdf.

Discuss

About The Author

Quality Digest’s picture

Quality Digest

For 40 years Quality Digest has been the go-to source for all things quality. Our newsletter, Quality Digest, shares expert commentary and relevant industry resources to assist our readers in their quest for continuous improvement. Our website includes every column and article from the newsletter since May 2009 as well as back issues of Quality Digest magazine to August 1995. We are committed to promoting a view wherein quality is not a niche, but an integral part of every phase of manufacturing and services.