GT In the early 1980s, the generic drug industry underwent a massive legislative overhaul in what is now called the Hatch-Waxman legislation. It was a fairly broad legislation, with 2 components: one that concerned clarification and changes in patent law, and another that enacted legislation making it easier for generics to enter the market. As a result, generic drugs came on the market faster, there was more competition, and the prices for these drugs dropped more rapidly. These were all advantageous for the consumer, initially. However, the drug prices decreased so much that they were barely above the cost to manufacture them. The margins came down significantly. Oftentimes, if a brand-name drug with a higher profit margin is available, manufacturers will stop producing its generic.
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