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Law360 (May 29, 2020, 4:19 PM EDT) -- Drug pricing and patent protection have attracted interest among policymakers in recent months. An issue gaining increased attention has been the use of so-called patent thickets to allegedly delay entry by biosimilar versions of biologic drugs.
Abstract We investigate whether private research investments are distorted away from long-term projects. Our theoretical model highlights two potential sources of this distortion: short-termism and the fixed patent term. Our empirical context is cancer research, where clinical trials -- and hence, project durations -- are shorter for late-stage cancer treatments relative to early-stage treatments or cancer prevention.
Journal List HHS Author Manuscripts PMC4557975 Am Econ Rev. Author manuscript; available in PMC 2015 Sep 2. Published in final edited form as: PMCID: PMC4557975 NIHMSID: NIHMS662192 Eric Budish, Benjamin N.
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