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Generic Drug - Springer Nature

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Last Updated: 03 March 2022

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Effect of Competition on Generic Drug Prices

Background: If the market exclusivity period for the new expires is shortening, one of the US's main strategies for gaining value in prescription drugs is substituting lower priced generics for brand drugs. This report investigates the effects of generic competition on drug prices by estimating the effect of generic drugs' introduction, following a brand's loss-of-exclusivity, on the average cost of comparable drugs. Methods Using the Medicare Part D drug case data from 2007 to 2018, we use both fixed effects and random effects at the drug level to determine competitors' and prices within each drug's relationship, as well as controlling for drug dependent variables. We also discover that the effect of competition on relative prices is similar to generic drugs that first appeared on the market in either 2007–11 or 2012–15.

Source link: https://doi.org/10.1007/s40258-021-00705-w

* Please keep in mind that all text is summarized by machine, we do not bear any responsibility, and you should always check original source before taking any actions

* Please keep in mind that all text is summarized by machine, we do not bear any responsibility, and you should always check original source before taking any actions