Pharmaceutical Supply Chain and the Key Players: Loss of Exclusivity

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An Overview of the Pharmaceutical Supply Chain and the Key Players
A pharmaceutical supply chain is essential for ensuring that manufactured prescription medications reach patients on time. As a result, it's a complicated process because incorrect drug distribution can have a negative impact on the company's reputation and customer satisfaction. Furthermore, several significant steps are taken in the pharmaceutical supply chain. The first is the manufacturing site, from which the prescriptions are generated. The pharmaceuticals are then transferred to a wholesale distributor before being stocked in retail stores. Pharmaceuticals are afterward negotiated in price before being distributed to pharmacies where patients can easily access them. All of these steps are integral as they determine the price of pharmaceuticals sold to patients and customer satisfaction. As a result, manufacturers and wholesale distributors are among the most important players in the pharmaceutical supply chain. Pharmacies that sell drugs to patients and Pharmacy Benefit Managers are also key players. Thus, all of these parties work together to ensure that drugs are manufactured and delivered to patients on time
Loss of Exclusivity
 When a new prescription drug is formulated, the pharmaceutical manufacturer is granted a legal patent right that can last between 10 to 15 years, depending on the type of drug. For a limited time, the legal rights awarded to the pharmaceutical manufacturer include the right to develop, sell, and market the drugs. However, as a natural part of the drug life cycle, loss of exclusivity (LOE) is unavoidable. LOE requires the pharmaceutical manufacturer to relinquish control of a specific drug formulation, which is then awarded to the entire market. When a branded pharmaceutical product's patent expires, it is usually met with a lot of competition from a generic brand of that drug (Healthcare Distribution Management Association 3). As a result, many manufacturers can sell a generic version of the same drug or employ other strategies to ensure that their sales are not adversely affected. LOE is an important part of every drug's life cycle because it allows for innovation and even improves opportunities for all. As a result, the paper will assess the loss of exclusivity, how it works, and the consequences.
Additionally, on most occasions, there has been a decrease in sales of branded pharmaceutical products as a result of LOE. Most people think of LOE as a phase that permanently alters brand profitability for the manufacturer who originally held the patent for a given drug. This is not always the case because competition may still be light even after the company's patent expires. Also, more than one manufacturer usually sells a generic drug after a drug is off-patent, increasing the competition. Thus, due to the high level of competition, the drug's price is expected to fall dramatically; however, this is not the case. Truvada, an HIV Prep medication, is one example of a drug that has been declared to have undergone LOE. Unlike other drugs, the generic drug that was introduced to the market was 30% less expensive, indicating that what happens after LOE may vary. Another important variab...