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Entry and Competition in the Pharmaceutical Market following Patent Expiry. Evidence from Macro and Micro Data
Entry and Competition in the Pharmaceutical Market following Patent Expiry. Evidence from Macro and Micro Data
This dissertation encompasses three essays on entry and competition in the German generic drug market. The first paper examines the market entry decisions of generic companies and finds that original drug producrs do not create barriers to entry by launching a generic version of the brand drug prior to patent expiry. The second paper examines generic market share dynamics and patients‘ switching behaviors among generic drugs. The analysis shows that generic market shares are little influenced by prices and highly persistent over time, conferring a substantial advantage to first generic entrants. Price differentials likewise have a negligible impact on the likelihood that patients switch to a generic drug offered by a different manufacturer. The third paper investigates generic price differentials and provides evidence of economies of scope and reputation effects.
Generic Entry, Generic Market Share Dynamics, Patient Switching Behavior, Generic Price Dispersion
Appelt, Silvia
2011
English
Universitätsbibliothek der Ludwig-Maximilians-Universität München
Appelt, Silvia (2011): Entry and Competition in the Pharmaceutical Market following Patent Expiry: Evidence from Macro and Micro Data. Dissertation, LMU München: Faculty of Economics
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Abstract

This dissertation encompasses three essays on entry and competition in the German generic drug market. The first paper examines the market entry decisions of generic companies and finds that original drug producrs do not create barriers to entry by launching a generic version of the brand drug prior to patent expiry. The second paper examines generic market share dynamics and patients‘ switching behaviors among generic drugs. The analysis shows that generic market shares are little influenced by prices and highly persistent over time, conferring a substantial advantage to first generic entrants. Price differentials likewise have a negligible impact on the likelihood that patients switch to a generic drug offered by a different manufacturer. The third paper investigates generic price differentials and provides evidence of economies of scope and reputation effects.