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I think this might be what’s going on with generic modafinil.
Last week I prescribed some modafinil to one of my patients and got a call back from their insurance company saying it was denied because it cost too much.
And this is, more generally, a problem with the markets for drugs that only a small number of patients use.
They often aren’t big enough to support two competitors.
I’m not totally sure, but my best guess is that it involves bioequivalence studies (different from purity studies).
Moreover, there’s risk associated with starting a drug price war.
Let’s say I decide to launch Sarah’s Generic Drug Company, and I’m pretty sure I can break even by slightly undercutting Turing and charging 0.
This might not seem so bad, but it must be harder than it sounds.
This site, whose style is overly bombastic but whose information seems mostly correct, says that: The cost and time involved in the ANDA [generic application] process varies depending on the drug, its safety, how long it has been on the market, etc.