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Isn’t the 180-day exclusivity period a way for generic companies to recoup their development and legal costs?

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Isn’t the 180-day exclusivity period a way for generic companies to recoup their development and legal costs?

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Sure. Generic companies have a substantial return on their investment and that is true even if they face competition during the 180-day exclusivity period. Moreover, generic companies do not make their investment decisions solely on their ability to obtain the exclusivity period. In many cases, they are not the first to file, and yet they still make legal and development investments. The economic investments of a non-monopolistic generic pharmaceutical marketplace more than reward companies for their sensible and successful investments.

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