Preview

Hatch Waxman Act 1984 Analysis

Powerful Essays
Open Document
Open Document
1493 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Hatch Waxman Act 1984 Analysis
Abstract
The patent system is the driving force behind pharmaceutical innovations1. It provides the innovators 20 years of royalty to recover their investments done in research and development of the new product. It also ensures the company’s ability to further profit from its innovations before generic drug manufacturers can copy and market the drug at a greatly reduced cost2. During this period no one can prepare, sell and copy innovator’s product without his permission. These patented products are costly and are not affordable to all consumers. With a view of making available, the effective treatment option to common public, the patent term restoration act 1984, also known as “Hatch Waxman act”, was passed. It provides an
…show more content…
Under the new legislation, generic entrants only needed to submit an Abbreviated New Drug Application (ANDA) that demonstrates the bioequivalence of its drug to the original. The Hatch- Waxman Act includes the guidelines for both innovator and generic firms. When a firm wants to enter in the market with a generic form of a patented product, then it needs to file an ANDA. This certification states that either FDA approves generic version after the expiry date of last patent (para 3 filing) or that its generic product does not infringe the listed patents (para 4 filing). If generic firm files ANDA under para 4, then Innovator is notified and within 45 days Innovator can file infringement action against the generic firm. After the filing of infringement suit, ANDA cannot be approved until the generic firm successfully defends the infringement or until 30 months whichever comes first. The provisions contained in the Act were designed to promote innovation and subsequently make it available to general public at affordable …show more content…
Patent evergreening
Evergreening involves building layers of protection by obtaining separate patents on multiple attributes of a single product. Evergreening is a strategy used by manufacturers of a particular drug to prevent the entry of it generic equivalents in the market. Example: GSK hold patents for ondansetron by utilizing this strategy. In addition to patent on API, the company also patented for salts, hydrates, other enantiomers, other dosage forms and formulation, process of manufacture of API etc. It was granted patent protection in 1987. Further obtaining divisional patents, its patent protection was extended to 2006.

Results and Discussion
Hatch Waxman act plays a very important role in making available the effective treatment to the public via promoting the generic version of the innovator’s product. Several amendments have been done in the Hatch-Waxman act to close the loopholes which restrict the generic drugs to enter the market.
• Non-extendable 30-month stay period
• Limited duration for notifying patent owner: notify the patent owner within 20 days.
• Allowance of declaratory judgment: within 45 days of notification, if patent owner does not file infringement

You May Also Find These Documents Helpful

  • Good Essays

    The PEI will also receive future royalties associated with an existing commercialized drug for a defined period…

    • 960 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Companies sometimes avoid patenting a product with a short life cycle because it is more costly than using other strategies of protection. The product may have run its course before the patent is approve. The amount of time to get the product patented may interfere with the manpower it takes to market the product, thus making the patent a burden. This makes a need for alternatives to the patent.…

    • 381 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Teva Pharmacuetical

    • 2882 Words
    • 12 Pages

    The first strategic issue that faces the firm lies at the very root of pharmaceuticals, the decision to be either an innovative or generic pharmaceutical company. Thus…

    • 2882 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    Pricing medication is dependent on which pharmaceutical company manufactured the drug. A patent gives a drug company monopoly power, and they can set the price above marginal cost (P>MC). The price is higher so the company can reap the profits. Although there is no chemical difference between the generic equivalent of a name brand drug, consumers may continue to purchase the name brand drug because they are familiar with the name. Once other drug companies start manufacturing, the price of the drug will drop.…

    • 1191 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    Specific aspects of the Healthcare Reform Act also posed serious threat to Genentech 's business model. The passage of the Biologics Price Competition and Innovation Act allowed for a shortened approval pathway for biogeneric drugs, which would have a significant impact on Genentech, because of the significant costs associated with product development and testing in the industry.…

    • 1095 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    PROCEDURAL HISTORY: Section 503A of the Food, Drug and Cosmetic Act, 21 U.S.C. § 353a exempts compounded drugs from certain provisions of the Food and Drug Administration’s standard approval requirements; provided that the distributors abide by certain restrictions, including advertising and promoting selected compounded drugs. The Act, however, did not prohibit the advertising of its effectiveness. The Central Hudson Gas et. Elec. Corp v. Public Serv. Comm’n of NY, 447 U.S. 557, 566 held that the restrictions directly advance its interests, or that less restrictive alternatives were unavailable.…

    • 421 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    In 1984, the Hatch-Waxman Act gave generic drug companies greater access to the market for prescription drugs and gave innovator companies greater patent life for branded products. The patent gives a company the sole right to sell the drug while the patent is in effect. When patents or other periods of exclusivity expire, manufacturers can apply to the Food and Drug Administration (FDA) to sell generic versions of the…

    • 70 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    Questions 6

    • 535 Words
    • 2 Pages

    The regulatory and legal issues related to drug and pharmaceutical development and sale is very complex. In order for the FDA to approve this drug for sale it must go through a very long lengthy process of it being approved. This long process can be costly and is considered highly risky. To achieve the point where you can sell your drug, the drug company must go through drug discover and testing. This is when thousands of scientists are employed to test the drug and do clinical testing. Once you pass the rigorous process of the FDA guidelines, your drug will then go through post approval safety and marketing. During this process, safety monitoring becomes a big issue. Next is labeling, advertising and promotional claims. Legal issues can occur during clinical testing to when the drug is out for the public to use.…

    • 535 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    FDA Defense

    • 2269 Words
    • 1 Page

    that a newly restructured FDA can be the product. First is the examination of how the…

    • 2269 Words
    • 1 Page
    Powerful Essays
  • Good Essays

    I had decided to take this course to form a critical perspective on the policies implemented by our government in regards to drug patents, generic medication and their preferential treatment towards pharmaceutical companies.…

    • 538 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Merck Swot Analysis

    • 1571 Words
    • 7 Pages

    Pricing pressure caused by Health Care Insurance payment structure and government regulation in the United States and abroad.…

    • 1571 Words
    • 7 Pages
    Good Essays
  • Better Essays

    Leading Pharmaceutical companies have, in recent times, been alarmed by the some adverse regulatory rulings in India. First in a landmark decision in March 2012, the Indian Patent Office allowed a domestic company (Natco Pharma Ltd.) to sell a generic version of Bayer AG's cancer drug ‘Nexavar’ on the grounds that the German company’s drug not affordable to the local populace due to cost reasons. Then in March 2013, the Honorable Supreme Court of India denied patent protection to Novartis’s blockbuster cancer drug ‘Gleevac’ stating that Novartis had resorted to ‘evergreening’ in an effort to extend their monopoly beyond the standard patent period. The Indian ruling has attracted global attention especially from the Big Pharma companies here in the U.S. The view is that India has scant disregard of intellectual property (IP) and pharmaceutical patent polices and the rulings are geared to favor local generic drug makers by way of issuing compulsory licenses. Pfizer’s Chief IP counsel Roy F. Waldron had, in written testimony before the US House Committee hearing on US-India trade relations in March 2013, accused India of being anti-IP rights. In his testimony he mentions that the “Business environment (in India) for innovative industries has deteriorated significantly in recent history” and “India has taken steps that call into question the sustainability of foreign investment and the ability of American companies to compete fairly.”…

    • 1572 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    Reach Through Claims

    • 3567 Words
    • 15 Pages

    This article explains what a “reach-through” claim is and then discusses the patentability of reach-through claims. The patentability of reach-through claims has particular importance for the protection of fundamental research which could be used in the subsequent development of biological or chemical therapeutic entities. This topic is important not just in terms of the protection of fundamental research inventions in these areas, but is also important in terms of assessing freedom to operate in these areas.…

    • 3567 Words
    • 15 Pages
    Powerful Essays
  • Good Essays

    Hr Strategy Pfizer

    • 576 Words
    • 3 Pages

    Not only are such companies subject to the expiration of a popular drug's patent, which opens the market to generic competition, but smaller biotechnology firms are able to produce new drugs more quickly, making it crucial for big pharmaceutical companies to have a continuous stream of promising drugs in the pipeline.…

    • 576 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    2. The Memorandum provides for measures to ensure that at least 50% of the volume of medicines used by public hospitals is composed of generics and drugs whose patent has expired, making it mandatory to procure pharmaceutical products by all public hospitals criterion for the active substance.…

    • 1920 Words
    • 8 Pages
    Powerful Essays