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Understanding First Mover Advantage in Generics and Pay-For-Delay

When a pharmaceutical company develops a new drug, it typically obtains a patent that provides exclusive rights to sell the drug for a certain period, usually 20 years. However, once the patent expires, other companies can apply to sell generic versions of the drug, which are chemically identical to the original and are usually sold at a lower price. The first company to file an Abbreviated New Drug Application (ANDA) with the U.S. Food and Drug Administration (FDA) for a generic version is often granted a period of exclusivity.

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Understanding First Mover Advantage in Generics and Pay-For-Delay

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