Longer Patents for Increased Generic Competition: The Waxman-Hatch Act after One Decade

Abstract

The 1984 Drug Price Competition and Patent Term Restoration Act (the Waxman-Hatch Act) is unique in many ways. This Law was the first change in U.S. patent terms since 1861. It simultaneously lowered the barrier to entry for generic drug firms and increased patent terms for new drugs delayed by FDA regulation. In this paper, we analyze the Act has performed in practice, determining whether the Law has resulted in cheaper and better drugs.

JEL Classification: O34O34