Navigation Links
Speedy generic approval may not benefit consumers as much as expected, Rotman model shows
Date:2/16/2011

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. Speedy generic approval may not benefit consumers as much as expected, Rotman model shows
2. Report Blames Speedy FDA Clearance for Medical Device Recalls
3. Generic drug may improve the effectiveness of cancer nanotherapies
4. Carpet and Rug Institute Expands Seal of Approval Program
5. FDA Cancer Drug Approval Rate Highlighted in JNCI
6. Approval of Kansas Smoke-Free Legislation Is Historic Win for Health
7. Physician calls for more rigorous standards for drugs up for FDA approval
8. Hard to Treat Diseases (HTDS) Acquired Varicella Approval in Guatemala
9. Yondelis(R) Receives Five New Approvals Outside the European Economic Area
10. Mega Stock Picks (megastockpicks.com) Initiates Coverage on FDA Approval for POZEN, Inc.(NasdaqGM: POZN) Drug Vimovo with Immediate Buy Recommendation
11. Almac to Improve Label Approval Process in Clinical Trials
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:8/17/2017)... , ... August 17, 2017 , ... ... The Journey to Healing Through Forgiveness ($15.99, paperback, 9781498497626; $7.99, eBook, 9781498497633) ... to encourage inner healing of memories and achieve forgiveness, through a progressive journey ...
(Date:8/17/2017)... , ... August 17, 2017 , ... Momkus McCluskey ... newest Partner. Ms. Parks is a member of the firm’s Commercial Litigation and Employment ... and provides a wealth of knowledge in matters of employment litigation, commercial litigation and ...
(Date:8/17/2017)... ... 2017 , ... A recent report indicates that circa 79 percent of 483 ... in data integrity. The FDA outlines their expectations for quality critical instrumentation in the ... of the Beckman Coulter Life Sciences Virtual Trade Show Virtual Event, this ...
(Date:8/16/2017)... ... 2017 , ... Blue Health Intelligence (BHI) announced today that Dr. ... Spiro brings over 30 years of clinical, healthcare IT, value-based care, and change management ... , “I am thrilled to welcome Dr. Spiro to BHI,” said Swati Abbott, ...
(Date:8/16/2017)... ... August 16, 2017 , ... The Data Council, ... that it was acquired by Advantage Solutions. The Data Council’s IX-ONE platform ... include the industry’s leading suppliers, brokers, distributors and retailers. The Data Council will ...
Breaking Medicine News(10 mins):
(Date:7/28/2017)... July 28, 2017 EnvoyHealth, a Diplomat company, has ... program for CleverCap LITE, a technology designed to improve ... deliver innovative health technology solutions and services that help ... CleverCap LITE offers medication monitoring and ... cover: Records date ...
(Date:7/27/2017)... Services, Inc. (NYSE: WST ) today announced ... financial guidance for the full-year 2017. ... Reported net sales of $397.6 million, a record high, ... constant currency (organic) grew by 3.9%. ... in the prior-year quarter. Second-quarter 2017 adjusted diluted EPS ...
(Date:7/26/2017)... Medical Aesthetics, a leading medical aesthetic clinic in Singapore ... several skin conditions from the inside. The natural process ... The skin becomes more transparent due to the thinning of the ... from the sun contributes to aging skin, causing age spots and ... ...
Breaking Medicine Technology: