Abstract:

China recently proposed a 6-year regulatory exclusivity period to incentivize research and development in new drugs, orphan drugs, and pediatric drugs. Our study assessed the generic entry status and the duration of market exclusivity for 356 new small-molecule drugs approved in China from 2003 to 2020. Of these, 155 drugs (43.5%) experienced generic entry, with a median market exclusivity period of 5.6 years (interquartile range: 2.4–9.4). Imported drugs, oral common-release agents, and drugs for the nervous system were more prone to generic entry (P < 0.001, P = 0.039, and P < 0.001, respectively). Domestic new drugs had a longer median market exclusivity (8.4 years) compared to imported drugs (5.7 years). Market exclusivity varied from 3.6 years for antineoplastic and immunomodulating agents to 6.8 years for drugs for the alimentary tract and metabolism. If the proposed 6-year regulatory exclusivity is implemented, the market exclusivity duration for new drugs is anticipated to double. It is essential for the government to carefully weigh the impact of such policies on balancing innovation incentives and ensuring drug affordability.

Key words: Generic drug, Market exclusivity period, Small molecule drugs, New drug development