Drug Price Competition and Patent Term Restoration Act

The Drug Price Competition and Patent Term Restoration Act, enacted in 1984, aims to balance two goals: making medicines affordable and encouraging innovation. It allows generic drug manufacturers to enter the market more easily after a brand-name drug's patent expires, thereby lowering prices. However, it also allows for a limited extension of patent life for new drugs, giving companies more time to recoup research and development costs. This act promotes competition while ensuring that pharmaceutical companies can profit from their innovations, ultimately benefiting consumers with better access to medications.