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The Impact of the Entry of Biosimilars: Evidence from Europe

Author

Listed:
  • Fiona M. Scott Morton

    (Yale School of Management)

  • Ariel Dora Stern

    (Harvard Business School)

  • Scott Stern

    (Massachusetts Institute of Technology)

Abstract

Biologics represent a substantial and growing share of the U.S. drug market. Traditional “small molecule” generics quickly erode the price and share of the branded product upon entry, however only a few biosimilars have been approved in the US since 2015, thereby largely preserving biologics from competition. We analyze European markets, which have had biosimilar competition since 2006. Using our own survey, we analyze how market features and public policies predict biosimilar entry, price, and penetration, finding significant heterogeneity across countries and products. Effective buyer institutions are associated with increased biosimilar penetration. Our estimates can inform ongoing policy discussions.

Suggested Citation

  • Fiona M. Scott Morton & Ariel Dora Stern & Scott Stern, 2018. "The Impact of the Entry of Biosimilars: Evidence from Europe," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 53(1), pages 173-210, August.
    • Handle: RePEc:kap:revind:v:53:y:2018:i:1:d:10.1007_s11151-018-9630-3
    DOI: 10.1007/s11151-018-9630-3
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    References listed on IDEAS

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    Cited by:

    1. Katharina E. Blankart & Friederike Arndt, 2020. "Physician-Level Cost Control Measures and Regional Variation of Biosimilar Utilization in Germany," IJERPH, MDPI, vol. 17(11), pages 1-14, June.
    2. Christopher M. Snyder & Victor J. Tremblay, 2018. "Introduction to the Special Issue on “The Intersection Between Industrial Organization and Healthcare Economics”," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 53(1), pages 1-6, August.
    3. Nicholas Bagley & Benjamin Berger & Amitabh Chandra & Craig Garthwaite & Ariel D. Stern, 2018. "The Orphan Drug Act at 35: Observations and an Outlook for the Twenty-First Century," NBER Chapters, in: Innovation Policy and the Economy, Volume 19, pages 97-137, National Bureau of Economic Research, Inc.
    4. Matthew J. Higgins & Mathias J. Kronlund & Ji Min Park & Joshua Pollet, 2020. "The Role of Assets In Place: Loss of Market Exclusivity and Investment," NBER Working Papers 27588, National Bureau of Economic Research, Inc.
    5. Böhm, Anna-Katharina & Steiner, Isa Maria & Stargardt, Tom, 2023. "Market diffusion of biosimilars in off-patent biologic drug markets across Europe," Health Policy, Elsevier, vol. 132(C).
    6. Richard G. Frank & Mahnum Shahzad & Aaron S. Kesselheim & William Feldman, 2022. "Biosimilar competition: Early learning," Health Economics, John Wiley & Sons, Ltd., vol. 31(4), pages 647-663, April.

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