Journal
JOURNAL OF HEALTH ECONOMICS
Volume 30, Issue 1, Pages 126-145Publisher
ELSEVIER
DOI: 10.1016/j.jhealeco.2010.09.004
Keywords
Paragraph IV; Generic entry; Pharmaceutical industry
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This purpose of this paper is to investigate the impact of Paragraph IV patent infringement decisions on brand drug pharmaceutical firms. Paragraph IV decisions determine whether a generic firm can enter before the period of exclusivity ends. I construct a novel dataset of all Paragraph IV decisions and find that they disproportionately involve the highest revenue drugs, significant periods of patent protection, and a non-trivial portion of all brand drugs facing generic entry. I also estimate the impact of Paragraph IV decisions on brand firm profitability and find they have large value consequences. (C) 2010 Elsevier B.V. All rights reserved.
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