Navigation Links
Speedy generic approval may not benefit consumers as much as expected, Rotman model shows

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
University of Toronto, Rotman School of Management

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 ( 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:
(Date:10/13/2017)... ... 2017 , ... While it’s often important to take certain medications during the ... Texas, has identified a solution. , She developed a prototype for MOTION LIGHT-UP PILL ... it eliminates the need to turn on a light when taking medication during the ...
(Date:10/13/2017)... ... October 13, 2017 , ... ... certification process to promote standards of excellence for the field of eating disorders, ... March 22 – 25, 2018 in Orlando, Florida at the Omni Resort at ...
(Date:10/13/2017)... ... October 13, 2017 , ... ... Pharmacy (SOP) alumni Hannah Randall, PharmD ‘17, and Jennifer Huggins, PharmD ’17, ... guideline updates for the primary prevention of cardiovascular diseases during the 15th ...
(Date:10/13/2017)... ... ... Apple Rehab Shelton Lakes , which specializes in the delivery of ... part of a disaster drill on October 3rd. , Apple Rehab participated with the ... as well as the Connecticut Long Term Care Mutual Aid Plan (LTC-MAP). The ...
(Date:10/13/2017)... BASKING RIDGE, N.J. (PRWEB) , ... October 13, 2017 , ... ... second annual Holly Day Market. Featuring a collection of specialty vendors and unique items ... myriad of personalized and quality-focused health and wellness services offered by the VNA. ...
Breaking Medicine News(10 mins):
(Date:9/22/2017)... DIEGO , Sept. 22, 2017 AVACEN ... medical device is now successfully helping those with the ... Fibromyalgia diagnosed Amanda in Essex, ... dressed and washing my hair, experiencing no sleep at ... in painful spasm… I cannot recommend [the AVACEN 100] ...
(Date:9/18/2017)... , Sept. 18, 2017 ... fields of bioinformatics and immune engineering, today ... protective avian influenza A (H7N9) vaccine. ... related to seasonal influenza and presents a ... on prior exposure to be effective. Using ...
(Date:9/12/2017)... FRANCISCO , Sept. 12, 2017  ValGenesis ... Management Solutions (VLMS), is pleased to announce the ... a member of its Board of Directors and ... ValGenesis VLMS enables life science companies to manage ... the use of paper in this process. Furthermore, ...
Breaking Medicine Technology: