Don’t Change 180-day Generic Exclusivity: Yale Journal
Researchers say issues involving innovator and generic drug companies strategically “parking” 180-day generic drug exclusivity to delay generic entry and competitive drug markets now occur infrequently. When parking does occur, the authors write in the Yale Journal of Health Policy, Law, and Ethics, it tends to relate to changes in FDA review standards over which generic manufacturers have little or no control.
“Recently proposed changes to the Waxman-Hatch Act’s statutory framework are therefore unlikely to substantially improve generic availability,” the researchers say. “In addition, such changes risk upsetting existing incentives for generic manufacturers to bring Paragraph IV challenges in the first place by increasing uncertainty with respect to the ability to obtain or retain exclusivity and the extent to which the exclusivity period will be shared.”
Additional research may find that strategic parking has simply become less transparent, the article says, rather than less frequent. But, “until additional evidence of the frequency, length, and financial impact of strategic behavior emerges, Congress should refrain from revising a system that has helped increase the share of generic drugs from 19% in 1984 to 90% in 2020, and that has led to generic drug prices in the United States that are generally among the lowest in the world. As revisions to the law are considered, legislators must recognize that any changes could inadvertently undo gains, as well as close loopholes. Legislators should avoid statutory amendments that undermine existing incentives to file generic applications containing Paragraph IV certification.”
The article reviews the history of 180-day exclusivity, evaluates the types of strategic behavior that remained after significant changes to Waxman-Hatch were made in 2003, and considers whether three recent legislative proposals are likely to offer improvements.