Executive summary, by the Secretariat (1) Competition from generic drugs is a desirable policy objective as it typically brings substantial savings to pharmaceutical buyers. However, it should be balanced against the incentives brand manufacturers need to invest in developing innovative new products. Competition between branded and generic pharmaceutical manufacturers can provide consumers with substantial savings. In the US, the first generic competitor typically enters the market at a price that is 20 to 30 percent lower than its brand name counterpart, and savings may reach up to 80 percent in the long run. In Europe, savings are estimated to be around 20 percent in the first year of generic entry, rising to 25 percent after two years. Branded pharmaceutical manufacturers face
The OECD holds a roundtable on generic pharmaceuticals
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