Abstract
Earlier studies have pointed at the presence of a generics paradox in the US prescription drug market. This article tests whether the generics paradox also holds in the presence of pricing and reimbursement regulation in six European prescription drug markets. Using proprietary pricing and market share data, the results of panel data analysis suggest that the generics paradox also holds in these markets. Neither generic entry nor generic market penetration affect prices of originator drugs downwards, and prices of originator drugs actually increase post-generic entry.
Original language | English |
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Article number | N/A |
Pages (from-to) | 3230-3239 |
Number of pages | 10 |
Journal | Applied Economics |
Volume | 45 |
Issue number | 22 |
DOIs | |
Publication status | Published - 2013 |
Keywords
- pharmaceuticals
- price competition
- patent expiry
- generics paradox
- panel data
- 1984 DRUG-ACT
- PRESCRIPTION MEDICINES
- PATIENT CHARGES
- PHARMACEUTICALS
- COMPETITION
- PRICE
- IMPACT
- ENTRY
- DEMAND