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Duke Economics Working Paper #95-11
Longer Patents for Increased Generic Competition:
the Waxman-Hatch Act after One Decade
Henry Grabowski
and
John Vernon
Abstract
The 1984 Drug Price Competition and Patent Term Restoration Act
(the Waxman-Hatch Act) is unique in many ways. This Law was the
first change in U.S. patent terms since 1861. It simultaneously
lowered the barrier to entry for generic drug firms and increased
patent terms for new drugs delayed by FDA regulation. In this
paper, we analyze the Act has performed in practice, determining
whether the Law has resulted in cheaper and better drugs.
JEL: O34
Published in PharmacoEconomics, Vol. 10 (Suppl. 2), 1996, pp. 110-123.