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Year of the authorized generic

Executive Summary

Deficit Reduction Act (S 1932), which was signed into law Feb. 8, delays inclusion of "authorized generics" in "best price" calculations until Jan. 1, 2007. Both the House and Senate budget reconciliation bills originally set Jan. 1, 2006 as the date for the provision to take effect. The new "best price" formula could effectively end the practice of "authorized generics" (1"The Pink Sheet" Jan. 2, 2006, p. 25). Generic Pharmaceutical Association lauds the new formula, claiming that it would yield more than $150 mil. in savings over five years...

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