Can branded drugs benefit from generic entry? The role of detailing and price in switching to non-bioequivalent molecules

International Journal of Research in Marketing

Volumn 25, Issue 4, 2008, Pages 247-260

  Gonzalez, Jorge ^a   Sismeiro, Catarina ^b   Dutta, Shantanu ^c   Stern, Philip ^d  

^a IESE BUSINESS SCHOOL   (Spain)

^b IMPERIAL COLLEGE LONDON   (United Kingdom)

^c UNIVERSITY OF SOUTHERN CALIFORNIA   (United States)

^d BANGOR UNIVERSITY   (United Kingdom)

Author keywords

Competition; Generic entry; Heterogeneity; Pharmaceuticals

Indexed keywords

EID: 55949094305     PISSN: 01678116     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ijresmar.2008.08.002     Document Type: Article

References (50)

1. Allenby G., and Ginter J. Using extremes to design products and segment markets. Journal of Marketing Research 32 (1995, November) 392-403
2. Anderson I.M., Nutt D.J., and Deakin J.F.W. Evidence-based guidelines for treating depressive disorders with antidepressants: A revision of the 1993 British Association for Psychopharmacology guidelines. Journal of Psychopharmacology 14 1 (2000) 3-20
3. Aronsson T., Bergman M.A., and Rudholm N. The impact of generic drug competition on brand name market shares - Evidence from micro data. Review of Industrial Organization 19 4 (2001, December) 425-435
4. Bae J. Drug patent expirations and the speed of generic entry. Health Services Research (1997) 87-101
5. Ben-Akiva M., and Lerman S.R. Discrete choice analysis: Theory and application to travel demand (1985), MIT Press, Cambridge, MA
6. Bucklin R.E., and Gupta S. Brand choice, purchase incidence, and segmentation: An integrated modeling approach. Journal of Marketing Research 29 2 (1992) 201-215
7. Caves R.E., Whinston M.D., and Hurwitz M.A. Patent expiration, entry and competition in the US pharmaceutical industry: An exploratory analysis. Brookings Papers on Economic Activity. Microeconomics 1991 (1992) 1-48
8. Coscelli A. The importance of doctors' and patients' preferences in the prescription decision. Journal of Industrial Economics 48 3 (2000) 349-369
9. Currie G.R., and Park S. The effects of advertising and consumption experience on the demand for antidepressant drugs. Working paper (2002), University of Calgary, Calgary, Alberta, Canada
10. Danzon P.M., and Chao L. Does regulation drive out competition in pharmaceutical markets?. Journal of Law and Economics XLIII (2000, October) 311-358
11. Department of Health UK. PPRS: The study into the extent of competition in the supply of branded medicines to the NHS (2002). http://www.dh.gov.uk/PublicationsAndStatistics accessible at http://www.dh.gov.uk/PublicationsAndStatistics
12. Dong, X., Manchanda, P., & Chintagunta, P.K. (in press), Quantifying the benefits of individual level targeting in the presence of firm strategic behavior. Journal of Marketing Research.
13. Ferrándiz J.M. The impact of generic goods in the pharmaceutical industry. Health Economics 8 (1999) 599-612
14. Fischer M.A., and Avorn J. Economic consequences of underuse of generic drugs: Evidence from Medicaid and implications for prescription drug benefit plans. Health Services Research 38 4 (2003) 1051-1064
15. Frank R.G., and Salkever D.S. Pricing, patent loss and the market for pharmaceuticals. Southern Economic Journal (1992, October) 165-179
16. Frank R.G., and Salkever D.S. Generic entry and the pricing of pharmaceuticals. Journal of Economics and Management Strategy 6 1 (1997) 75-90
17. Gleckman H. The backlash against big pharma. Business Week Online (2002, May 27). http://www.businessweek.com accessible at http://www.businessweek.com
18. Gönül F., Carter F., Petrova E., and Srinivasan K. Promotion of prescription drugs and its impact on physicians' choice behavior. Journal of Marketing 65 (2001) 79-90
19. Grabowsky H., and Vernon J. Brand loyalty, entry, and price competition in pharmaceuticals after the 1984 Drug Act. Journal of Law and Economics 35 (1992)
20. Grabowsky H., and Vernon J. Longer patents for increased generic competition: The Waxman-Hatch after one decade. PharmacoEconomics 10 (1996) 110-123
21. Hellerstein J.K. The importance of the physician in the generic versus trade-name prescription decision. Rand Journal of Economics 29 1 (1998) 108-136
22. Hurwitz M.A., and Caves R.E. Persuasion or information? Promotion and the shares of brand name and generic pharmaceuticals. Journal of Law and Economics 31 (1988, October) 299-320
23. Janakiraman R., Dutta S., Sismeiro C., and Stern P. Physicians' persistence and its implications for their response to promotion of prescription drugs. Management Science 54 6 (2008) 1080-1093
24. Janakiraman, R., Sismeiro, C., & Dutta, S. (in press). Perception spillovers across competing brands: A disaggregate model of how and when. Journal of Marketing Research.
25. Jayachandran, S., Nevins, J.L., & Bearden, W.O. (2003), "Market share retention after generic entry in a complex buying system: The case of pharmaceutical brands," working paper.
26. Königbauer I. Advertising and generic market entry. Journal of Health Economics 26 2 (2007) 286-305
27. Kyle M.K. Pharmaceutical price controls and entry strategies. working paper (2003), Carnegie Mellon University
28. Lexchin J. The effect of generic competition on the price of brand-name drugs. Health Policy 68 (2004) 47-54
29. Lichtenberg F., and Philipson T. Creative vs. uncreative destruction of innovative returns: An empirical examination of the U.S. pharmaceuticals market. NBER working paper (2000) 46935
30. Liu Q., Gupta S., and Venkataraman S. The dynamics of competitive drug detailing. Working paper (2007), The Johnson School at Cornell University
31. Lundin D. Moral hazard in physician prescription behaviour. Journal of Health Economics 19 (2000) 639-662
32. Magazzini L., Pammolli F., and Riccaboni M. Dynamic competition in pharmaceuticals: patent expiry, generic penetration, and industry structure. European Journal of Health Economics 5 (2004) 175-182
33. Manchanda P., Rossi P.E., and Chintagunta P.K. Response modeling with non-random marketing mix variables. Journal of Marketing Research 41 (2004, November) 467-478
34. McCarthy C. Bullish Lundbeck forges ahead. Financial Times, August, 16th (2000)
35. Middleton H., Shaw I., Hull S., and Feder G. NICE guidelines for the management of depression. British Medical Journal 330 (2005, February 5) 267-268
36. Mizik N., and Jacobson R. Are physicians easy marks?: Quantifying the effects of detailing and sampling on new prescriptions. Management Science 50 12 (2004) 1704-1715
37. Moran M. Physicians question FDA's confidence in generic drugs' safety, efficacy. Psychiatric News 42 11 (2007, June 1) 17
38. Murray C.J.L., and Lopez A.D. Global mortality, disability, and the contribution of risk factors: global burden of disease study. Lancet 349 (1997) 1436-1442
39. Narayanan, S. & Manchanda, P. (in press), Heterogeneous learning and the targeting of marketing communication for new products. Marketing Science.
40. Narayanan S., Manchanda P., and Chintagunta P.K. Temporal differences in the role of marketing communication in new product categories. Journal of Marketing Research 42 (2005, August) 278-290
41. Newhouse J.P. Free for all? Lessons from the Rand Health Insurance Experiment (1993), Harvard University Press, Cambridge
42. Reiffen D., and Ward M.R. Generic drug industry dynamics. Review of Economic and Statistics 87 1 (2003) 37-49
43. Scott-Morton F.M. Entry decisions in the generic drug industry. The RAND Journal 30 3 (1999) 421-440
44. Scott-Morton F.M. Barriers to entry, brand advertising, and generic entry in the US pharmaceutical industry. International Journal of Industrial Organization 18 7 (2000) 1085-1104
45. Scott-Morton F.M. Horizontal integration between brand and generic firms in the pharmaceutical industry. Journal of Economics and Management Strategy 11 1 (2002) 135-168
46. Stern, S. (1996), The demand for pharmaceuticals, MIT mimeo.
47. Train K.E. Discrete choice methods with simulation (2003), Cambridge University Press, Cambridge (UK)
48. Van Arnum P. The generics onslaught begins. Chemical Market Reporter, Nov. 8th (2004)
49. Venkataraman S., and Stremersch S. The debate on influencing doctors' decisions: Are drug characteristics the missing link?. Management Science 53 11 (2007) 1688-1701
50. Wittink, D. R. (2002). Analysis of ROI for pharmaceutical promotions. Unpublished study conducted for the Association of Medical Publications (available at www.rappstudy.org)