The Unintended Economics of the BLOCKING Act

The Hatch-Waxman Act established an important incentive for generic drug manufacturers to challenge brand drug patents and bring lower-cost drugs to market. However, legislation known as the BLOCKING Act would significantly weaken the incentive for generics to challenge brand patents and delay patient access to more affordable generic medicines. Matrix Global Advisors conducted a study on the unintended consequences of the BLOCKING Act found that discouraging a Paragraph IV challenge would lead to $1.7 billion in lost savings for each generic delayed.

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