What Is the Orange Book?
Let me explain the Orange Book directly: it's a list of drugs and pharmaceuticals that the U.S. Food and Drug Administration (FDA) has approved as both safe and effective. You might hear it called the Orange Book, but its formal name is Approved Drug Products with Therapeutic Equivalence Evaluations.
Remember, the Orange Book doesn't include drugs only approved as safe; they must also have been proven effective. If a drug's safety or efficacy approval has been withdrawn, it's excluded from the Orange Book. That said, a drug currently under regulatory action might still appear in it.
Key Takeaways
Here's what you need to know: the Orange Book is a freely accessible list maintained by the FDA that describes all pharmaceutical drugs proven both safe and effective. Only drugs that have cleared phase 3 clinical trials successfully make it onto the list. You'll find it useful for identifying generic drug equivalents, which can often cost much less for patients.
Understanding the Orange Book
The FDA approves new drugs or existing ones for new uses after a series of double-blind randomized clinical trials. In the early phases, tests focus on the safety of a compound to ensure it doesn't cause severe side effects or harm. Phase 3 trials involve larger samples to prove both safety and efficacy against a placebo. If it succeeds, the drug gets added to the Orange Book and approved for use.
You can access the Orange Book online for free, making it straightforward for medical professionals to search for generic equivalents to brand-name drugs, along with drug patents and exclusivity. As a consumer, you can also use it to check approved uses for drugs and patent expiration dates for name-brand ones. Both you and your doctor can see this information directly.
To find if there's a generic equivalent to a brand-name drug, do an active ingredient search. For example, for Prozac, search the Orange Book for 'fluoxetine hydrochloride.' For a generic drugmaker to market and sell their version, they must file an Abbreviated New Drug Application (ANDA) with the FDA and prove the drug is bioequivalent to the brand-name one. If approved, the generic gets listed in the Orange Book.
Using the Orange Book
Take a search for the prescription antidepressant Prozac as an example: it shows the drug is available in forms like capsules, tablets, solutions, and delayed-release pellets, with varying dosage strengths. The search also notes that five forms have been discontinued, but in three cases, it's specified that this wasn't due to safety or efficacy reasons. The capsules were first approved in 1987, and the drug is approved for acute treatment of treatment-resistant depression in adults.
The Orange Book will also indicate that the active ingredient is fluoxetine hydrochloride, which may be available generically at a lower cost.
Patent Information
When a new drug enters the market, the FDA awards the drugmaker a medical patent that protects it from competitors for a set period. Orphan drug patents last seven years, while new chemical entity exclusivity lasts five years. New clinical investigation exclusivity runs for three years, and pediatric exclusivity adds six months on top of existing patents or exclusivity. A patent challenge provides 180 days of protection for ANDAs only, and competitive generic therapy also lasts 180 days for ANDAs.
Under the Hatch-Waxman Act, a generic manufacturer must certify they won't launch their product until the patent expires to win approval.
You can get the Orange Book as a PDF, in print, or electronically. The electronic version is the most current, with daily updates including generic drug approvals and patent information. Other details, like new drug application approvals and discontinued products, may update monthly.
Fast Fact
Patent terms are set by statute: currently, a new patent lasts 20 years from the filing date in the United States, though many factors can affect its duration.
Other articles for you
Ledger wallets are secure hardware devices for storing cryptocurrency private keys offline.
Unearned revenue is money received by a company for goods or services not yet delivered, recorded as a liability until earned.
Liquidity ratios assess a company's ability to pay short-term debts using liquid assets.
Opaque pricing is a strategy where companies offer hidden lower prices to price-sensitive customers, commonly used in travel to manage inventory without harming brand integrity.
Weighted Average Life (WAL) is a financial metric that calculates the average time for unpaid principal on loans or bonds to be repaid, aiding in credit risk evaluation.
A short squeeze happens when a stock's price rises sharply, forcing short sellers to buy back shares and driving the price even higher.
Automatic bill payments are scheduled transfers to pay recurring bills, offering convenience but with potential risks like fees if funds are insufficient.
International bonds are debt investments issued by foreign entities that provide portfolio diversification but come with currency risks.
A leg is a component of a multi-part trading strategy involving options or futures to hedge, arbitrage, or profit from spreads.
A real estate operating company (REOC) is a publicly traded entity that invests in and manages commercial properties, reinvesting earnings for growth rather than distributing them like REITs, while facing higher taxes.