The Regulation of Prescription Drug Competition and Market Responses¶
Aitken, M. (2013). The Regulation of Prescription Drug Competition and Market Responses: Patterns in Prices and Sales Following Loss of Exclusivity.
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Domain-specific¶
- Barrier to Entry
- When the U.S. patent expired in late 2011, entry was at first limited by a 180-day exclusivity window in which only three sellers competed — Pfizer's brand, its authorized generic through Watson, and Ranbaxy — and the price of atorvastatin fell sharply once that window closed at the end of May 2012 and broader generic competition drove it toward marginal cost
This sourceAitken and colleagues' study of prices and sales following loss of exclusivity, which tracks atorvastatin through its late-2011 patent expiry, records the three sellers competing during the 180-day first-filer window - the brand, its authorized generic through Watson, and Ranbaxy - and finds the price falling sharply only once that window expired at the end of May 2012.
- When the U.S. patent expired in late 2011, entry was at first limited by a 180-day exclusivity window in which only three sellers competed — Pfizer's brand, its authorized generic through Watson, and Ranbaxy — and the price of atorvastatin fell sharply once that window closed at the end of May 2012 and broader generic competition drove it toward marginal cost
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