Pharmaceutical industry's changing market dynamics. Issue 2 (3rd May 2020)

• Record Type: Journal Article
• Authors: Saha, Atanu; Roberts, Heather
• Is Part Of: International journal of the economics of business. Volume 27:Issue 2(2020)
• Page Start: 159
• Page End: 175
• Publication Date: 2020-05-03
• Subjects: Pharmaceutical industry -- competition -- generic substitution; Economics -- Periodicals; Business -- Periodicals; 338.5024658
• DOI: 10.1080/13571516.2020.1752044
• Languages: English
• ISSNs: 1357-1516

Abstract

Abstract: Using a panel dataset of 82 drugs that lost exclusivity between 2009 and 2018, we examine three key variables: the number of generic entrants, the generic-to-brand price ratio, and generic share. We also undertake a comparative analysis of these variables using an earlier dataset of 40 drugs that lost exclusivity in 1992–1998. Our principal findings are: a marked decrease in the number of generic manufacturers per drug, higher generic concentration, and higher generic-to-brand price ratios in the more recent years. Despite higher generic-to-brand price ratios, however, the generics have garnered higher market share, reflecting their rising market power and the ongoing major structural changes in the pharmaceutical industry.