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:4/28/2017)... ... April 28, 2017 , ... An April 24th article on Yahoo! Beauty discusses ... with the help of a weight loss surgery. The woman, declaring “I will not hate ... been left following her dramatic weight loss. Dr. Feiz & Associates notes that, while it ...
(Date:4/28/2017)... (PRWEB) , ... April 28, 2017 , ... ... its new partnership with the Home Care Association of America (HCAOA). This agreement ... Private Duty Accreditation services, as well as discounts on Accreditation University (AU) educational ...
(Date:4/28/2017)... (PRWEB) , ... April 28, 2017 , ... ... to announce the integration of Microsoft(R) Word(TM) Online(TM), which enables sleep physicians to ... since it streamlines the reporting process and provides a familiar interface that does ...
(Date:4/28/2017)... ... ... Horizon Blue Cross Blue Shield of New Jersey (BCBSNJ) announced today that ... as “stable.” At the same time, the ratings agency cautioned that the company’s rating ... “capital adequacy” thresholds required for its strong rating. , “Horizon is committed to being ...
(Date:4/28/2017)... ... April 28, 2017 , ... GlycoMark, Inc. announced today ... throughout the Northeast U.S. , GlycoMark is the only clinically available blood ... provides a clinically proven one- to two-week measure of hyperglycemic excursions, often related ...
Breaking Medicine News(10 mins):
(Date:4/20/2017)... MINNEAPOLIS , April 20, 2017  Cogentix ... company focused on providing the Urology, Uro/Gyn and ... reported that Ash Keswani has joined the Company ... In this newly created position, Mr. Keswani will ... and CEO. "Our organization is delighted ...
(Date:4/20/2017)... Research and Markets has announced the addition of the ... Market and Increasing Usage of Complex Biologics during the Forecast Period" ... ... 20 Billion in 2015 to around USD 26 Billion by 2020. ... by Rapidly Expanding Injectables Market and Increasing Usage of Complex Biologics ...
(Date:4/20/2017)... 20, 2017 Eyevensys, a private ... non-viral gene expression technology that enables the safe, local, ... address a wide range of ophthalmic diseases, announces it ... products Regulatory Agency (MHRA) to advance its technology into ... ...
Breaking Medicine Technology: