Navigation Links
Speedy generic approval may not benefit consumers as much as expected, Rotman model shows
Date:2/8/2011

Toronto Faster approval times for generic drugs will get them into consumers' hands quicker, but may not make the price any better, a pricing and marketing researcher has found.

A mathematical model created by Andrew Ching shows that fewer firms enter the marketplace because the chances of getting there first and commanding the best profits are dramatically smaller when drug approval times are shorter. Ching is an associate professor of marketing at the University of Toronto's Rotman School of Management.

Using the drug clonidine, Prof. Ching's model showed the number of firms in the marketplace dropped by 25 percent, from 12 to nine, under a shortened approval time scenario.

"Potentially, for the consumer, the price may not drop as much as you'd hope," said Prof. Ching.

Under the current situation it takes companies an average of more than 20 months to get U.S. Food and Drug Administration (FDA) approval for generic versions of established drugs. That makes approval times uncertain and companies often must go through several rounds of review. Companies also pay several million dollars when they apply for FDA approval. Given these as well as other development costs, firms making it to the marketplace last sometimes experience losses.

The FDA in recent years has talked about reducing its approval times in order to benefit consumers, and has proposed strategies for how it could do so, including spending more money in order to bring on extra staff to do the reviews.

Prof. Ching says his results, which were published in International Economic Review, suggest the FDA should think twice before going that route.

"Even if the government spends a large amount of resources to improve the efficiency of the FDA in approving generic drugs, it does not necessarily achieve the goal of enhancing welfare," Prof. Ching's paper concludes.


'/>"/>

Contact: Ken McGuffin
mcguffin@rotman.utoronto.ca
416-946-3818
University of Toronto, Rotman School of Management
Source:Eurekalert

Page: 1

Related medicine news :

1. Generic drug may improve the effectiveness of cancer nanotherapies
2. Cancer-targeting investigational nanoparticle receives FDA IND approval for first-in-human trial
3. SNM applauds FDA advisory committee recommendation for approval of Alzheimers imaging agent
4. FDA Advisers Consider Approval of Genetically Modified Salmon
5. FDA Advisers Weigh Approval of Genetically Modified Salmon
6. FDA Panel Votes Against Approval of Female Viagra
7. Mr. Dad and GreatDad.com Salute Fathers and Families with This Spring's ‘Seal of Approval' Picks
8. US Department of Education Financial Aid Approval
9. Hydroponics Nutrients For Medical Marijuana Gain Government Approval
10. United Nations Approval Rating rises to 60% in New Opinion Poll
11. FDA Warns Cosmetic Doctor about Promoting Anti-Wrinkle Drug before FDA Approval; Unbiased Information on Skin Care a Precious Resource Says SkinTour.com
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:7/24/2017)... ... July 24, 2017 , ... “Nana Nana Boo Boo”: ... of being kind to others. “Nana Nana Boo Boo” is the creation of published ... , Published by Christian Faith Publishing, Michael Rush’s new book presents the importance ...
(Date:7/24/2017)... ... July 24, 2017 , ... “Journey to the Light: The Quest for Happiness ... young woman’s path to finding herself. “Journey to the Light: The Quest for ... Grayson, an experienced writer of newsletters, manuals, and articles, who has recently decided to ...
(Date:7/23/2017)... ... July 24, 2017 , ... Three experts will be ... 59th Annual Meeting & Exhibition, to be held in Denver, CO on July ... and journalists can visit the AAPM Facebook page to watch three speakers present ...
(Date:7/23/2017)... ... July 23, 2017 , ... A 20-year-long study ... Louis, and led by the Minneapolis Veterans Administration Health Care System overwhelmingly supports growing ... disease offers very few benefits. , In the cases involved with this study, ...
(Date:7/23/2017)... ... July 23, 2017 , ... Better education to coaches and ... their work today at the American Orthopaedic Society for Sports Medicine’ ... one to prospectively document the association between sports specialization and lower extremity injuries ...
Breaking Medicine News(10 mins):
(Date:7/21/2017)... International plc (NASDAQ: ENDP ) today announced ... network, the Company will be ceasing operations and closing ... Alabama . The closure of the facilities is ... 18 months. The Huntsville location ... and these restructuring actions are intended to better match ...
(Date:7/20/2017)... July 20, 2017  Prime Therapeutics LLC (Prime) released this ... M.D., following today,s Institute for Clinical and Economic Review,s (ICER) ... the effectiveness and value of abuse-deterrent formulations (ADF) of opioids. ... roundtable at the meeting. ... cost benefit to the use of abuse-deterrent formulations (ADF) in ...
(Date:7/17/2017)... , July 17, 2017  MedX Holdings, Inc., the ... testing, strengthening and rehabilitation equipment, today announced the national ... MedX is considered the gold standard for the treatment ... specialized medical strengthening equipment. ... with the physician or practice who prescribe the MedX ...
Breaking Medicine Technology: