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Mylan's War on Authorized Generics

 
• By Michael McCaughan

Changes to the Medicaid law will put a crimp in the economics of "authorized" generic agreements. But Mylan won't be happy until Congress takes further action.

Just when planning for the end of a product’s patent life seemed to be getting easier, Congress is changing the rules again. Legislation signed by the President February 8 significantly changes the economics of "authorized" generics, an increasingly popular approach used by manufacturers seeking to maximize their revenue streams from off-patent products.

The new law will require brand companies to include the "authorized" generic in their pricing calculations they use to determine...

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