Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Stiing Would-Be Competition Washington, DCThe Federal Drug Administration (FDA) today named and shamed the biggest pharmaceutical companies for stiing the development of generic drugs. Companies

image text in transcribed

image text in transcribed
Stiing Would-Be Competition Washington, DCThe Federal Drug Administration (FDA) today "named and shamed" the biggest pharmaceutical companies for stiing the development of generic drugs. Companies wanting to develop generic substitutes for branded drugs must prove the bioequivalence of their products to their branded counterparts. To do that, they need large suppliestypically 1,500 to 5,000 unitsof the branded drug for testing. The generic companies complain that the branded companies deny or delay access to the needed inventory. When that happens, the generic companies can lodge a complaint with the FDA. The FDA today released a list of those complaints. Celegne topped the list, with 31 "inquiries," the largest number concerning access to its Revlimid drug, which sells for $20,000 a month to treat blood cancer and raked in over $8 billion in sales last year. The branded producers claim that they limit the distribution of their pricey drugs for safety reasons. Dr. Scott Gottlieb, FDA's commissioner. says the branded companies are "gaming the system" to suppress the development of generic substitutes. Source: FDA News Release of August 13, 2018. If generic producers were able to produce a substitute for Revlimid that reduced Revlimid's sales by 50 percent, how much less revenue would Celegne take in per year? Approximately :l billion less

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics Policy And Practice

Authors: Frederic Mishkin

2nd Edition

0133424316, 978-0133424317

More Books

Students also viewed these Economics questions

Question

=+b) What is the minimin choice?

Answered: 1 week ago

Question

14. Now reconcile what you answered to problem 15 with problem 13.

Answered: 1 week ago