'Napsterizing' Pharmaceuticals: Access, Innovation, and Consumer Welfare In an All-Generic World

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'Napsterizing' Pharmaceuticals: Access, Innovation, and Consumer Welfare In an All-Generic World
James W. Hughes, Michael J. Moore, Edward A. Snyder; working paper published by National Bureau of Economic Research

Oct. 1, 2002

Excerpt: We analyze the effects on consumers of an extreme policy experiment-- 'Napsterizing' pharmaceuticals-- whereby all patent rights on branded prescription drugs are eliminated for both existing and future prescription drugs ... [P]roviding greater access to the current stock of prescription drugs yields large benefits to existing consumers. However, realizing those benefits has a substantially greater cost in terms of lost consumer benefits from reductions in the flow of new drugs.

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