U.S. Governments Generic Drugs Policy

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This study is concerned with prevention of erosion of the viability of Pharmaceutical Companies and ways in which these companies will re-invent themselves to stand out against the crisis in addition to what economic forces will influence their ultimate survival.


Government's generic drugs policy, how it affects the pharmaceutical industry and how the companies should address the situation in order to stay competitive and continue to meet the dynamic and ever growing health care needs. The situation is alarming as many drugs will go off-patent with the result, the pioneering pharmaceutical companies will be pitted against the rest of the world in surviving the competition from generic drugs market unless they continue to innovate and invent newer drugs for existing and new diseases. This study will identify the interplay of economic theories that underpin the survival of pharmaceutical industry in the wake of increased competition in generics market.

World pharmaceutical sales are estimated to grow by 5 -6 % in 2008 as opposed to 6 -7 % growth in 2007.This is attributed to reduction of the cost of drug treatment in selected therapies and dilution of intellectual property rights. U.S. will experience only 4 %-5 % growth, the lowest recorded in the history of U.S. pharmaceutical market due to U.S. Medicare Part D which keeps the price under control, the expiry of patents for many branded drugs which has resulted in the increase of use of low cost generics, accelerated payer pressure, limited access to some therapies and increased safety measures that lead to the slowing down and stopping of introduction of new drugs. ...
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