Pricing Policies to Handle Patent Loss or Expiry

Abstract

Generics provide improved access to drugs for developed and developing world markets and offer payers and governments the opportunity to reduce the costs of their healthcare provision. Their main threat is the dramatic reduction in revenues for the original manufacturer. This paper looks at the matter from the point of view of pharmaceutical companies and outlines some of the ways in which pricing can be used to counter this threat and maximise revenues when patent protection is lost.