Patent Expiry and Pharmaceutical Market Opportunities at the Nexus of Pricing and Innovation Policy - Innovation and Marketing in the Pharmaceutical Industry - page 256

Pharmacogenomics New patent Up to 3 years AstraZeneca could classify effectiveness

and side effect reactions regarding
human genetic variations or claim a
new method-of-use for certain
subtypes

Lichter and
Kurth ( 1997 )

Introducing a branded (or
“authorized”) generic

Market through “fi rst
mover advantage”

Limited duration Go to market with “branded” or authorized

Generic to get fi rst mover advantage.
At the same time raise price of branded
products to capture additional margins
from brand sensitive buyers

FTC ( 2009 )

Cornering key ingredients Supply chain exclusivity Life of exclusivity Cornering supply of key ingredients e.g.,

by exclusive contracts

Harris and
Rundle ( 2000 );
Harris ( 2001 )

Introducing a generic Market through “fi rst

mover advantage”

Limited duration Go to market with Generic to get fi rst

mover advantage. At the same time
raise price of branded products to
capture additional margins from brand
sensitive buyers

Mehl ( 2006 )

Produce for generic companies Legal/contract N/A Use existing manufacturing capacity

to make and sell to generic companies

AstraZeneca ( 2008 )

Pay generics to delay entry Legal/contract Limited duration Pay generic companies explicitly to not

produce competing products

Rosenthal ( 2002 ); FTC
Staff Study ( 2010 )

Petitioning patients, doctors,
and congress

Legal Limited duration Unlikely that Congress will grant any

more substantial patent extensions
in near future. AZ could apply
for an extension under the General
Agreement on Trade and Tariffs
(GATT) legislation

Hensley ( 2001 );
Paige ( 1997 )

(continued)