Abstract

Consumers suffer from high drug prices, which stem in large part from pharmaceutical companies’ anticompetitive games. This essay discusses the crucial role antitrust enforcement agencies can play in addressing pay-for-delay settlements and product hopping and draws lessons from this enforcement. In particular, it explains how, learning from the experience with U.S. pay-for-delay settlements, the Chilean National Economic Prosecutor’s Office (FNE) should consider the potential downsides from exclusivity periods that make it easier for brand firms to keep generics off the market. And it explains how the Federal Trade Commission and FNE can target product hopping that makes no sense other than by harming the generic.

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