What are the implications of generic drug approval for brand name manufacturers?

Generic drug approval has implications for brand name manufacturers in California. Generally, when generic drugs are approved, brand name manufacturers suffer a decrease in their profits. This is because generic drugs are significantly cheaper than brand name drugs and can be used as an alternative for many patients. Generic drug approval also affects brand name manufacturers in the long term. When a generic drug is approved, the period of exclusive patent rights for the brand-name manufacturer ends. This allows competitors to produce the same drug, leading to greater competition and a decrease in the prices of brand name drugs. Generic drugs also create challenges for brand-name manufacturers. Since generic drugs cost significantly less, pharmaceutical companies may shift their focus away from the brand-name drugs towards the more profitable generic version of their products. This can lessen the profitability of the brand-name products and thus the motivation to continue to innovate and develop drugs. It also encourages drug companies to focus on producing generics as it is a more profitable option. Overall, generic drug approval in California affects brand name manufacturers in both the short-term and the long-term. Short-term effects include a decrease in profits due to generic drugs being cheaper, while long-term effects include competition from competitors and a shift away from the brand-name products.

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What are the implications of generic drug approval for brand name manufacturers?

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