Market Exclusivity

Market exclusivity refers to a period during which a company has the exclusive right to sell a new product, typically after its approval by a regulatory authority. This exclusivity prevents other companies from selling the same product or a generic version for a specific time, usually years. It encourages innovation by allowing companies to recoup their research and development costs without immediate competition. For example, a pharmaceutical company might have a period of market exclusivity for a new drug, ensuring that they are the only ones who can sell it during that time, which can lead to higher profits.