CCP Seminar: Authorized Generic Entry prior to Patent Expiry

The CCP seminar series continues on Friday 8th February when we welcome Silvia Appelt (OECD) who shall be presenting her paper entitled ‘Authorized Generic Entry prior to Patent Expiry: Reassessing Incentives for Independent Generic Entry‘. An abstract for her study can be found below.


Patent holders attempt to mitigate the loss of monopoly power by authorizing generic entry prior to patent expiry. Off-patent competition could be adversely affected if authorized generic entry substantially lowered the attractiveness of subsequent generic entry. This study assesses the impact of authorized generic entry on generic entry decisions in the course of recent patent expiries in Germany. I make use of micro data and estimate recursive bivariate probit models to account for the endogeneity of authorized generic entry. The results show that authorized generic entry has no significant effect on the likelihood of generic entry. Originators’ endeavor to expand the scope of business and rent-seeking motives drive authorized generic entry decisions.

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