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Generic Drug Entry Prior to Patent Expiration: An FTC Study

Pharmaceutical drug products have become increasingly important to providing consumers with a myriad of treatments and cures that increase life expectancy and enhance lives. It is critical to maintain appropriate incentives for the development of new drug products, because the necessary research and development is risky and costly. Innovation in the pharmaceutical industry, spurred in part by competitive market forces, continues to bring enormous benefits to Americans. At the same time, expenditures on pharmaceutical products continue to grow and often outpace expenditures for other consumer products. Pharmaceutical expenditures concern not only consumers, but government payers, private health plans, and employers as well. Generic drugs offer opportunities for significant cost savings over brand-name drug products.

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