Advanced Search
MyIDEAS: Login to save this article or follow this journal

Do Important Drugs Reach the Market Sooner?

Contents:

Author Info

  • David Dranove
  • David Meltzer

Abstract

Since the Food and Drug Administration (FDA) Amendments of 1962, the average time from a drug's first worldwide patent application to its approval by the FDA has risen from 3.5 to 13.5 years. FDA policies and manufacturers' incentives suggest that more important drugs may have reached the market sooner. To test this, we develop measures of "time to approval" and "importance," and determine how the latter affects the former. Our results indicate that more important drugs are developed and approved more rapidly than less important drugs. These results imply that the costs of approval lags have probably been overstated and challenge estimates of the returns to research and development in the pharmaceutical industry.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://links.jstor.org/sici?sici=0741-6261%28199423%2925%3A3%3C402%3ADIDRTM%3E2.0.CO%3B2-X&origin=repec
File Function: full text
Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by The RAND Corporation in its journal RAND Journal of Economics.

Volume (Year): 25 (1994)
Issue (Month): 3 (Autumn)
Pages: 402-423

as in new window
Handle: RePEc:rje:randje:v:25:y:1994:i:autumn:p:402-423

Contact details of provider:
Web page: http://www.rje.org

Order Information:
Web: https://editorialexpress.com/cgi-bin/rje_online.cgi

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Boyan Jovanovic, 2004. "The Pre-Producers," NBER Working Papers 10771, National Bureau of Economic Research, Inc.
  2. Régibeau, Pierre & Rockett, Katharine, 2007. "Are More Important Patents Approved More Slowly and Should They Be?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 6178, C.E.P.R. Discussion Papers.
  3. Fiona Scott Morton, 1997. "The Objectives of the FDA's Office of Generic Drugs," NBER Working Papers 6143, National Bureau of Economic Research, Inc.
  4. Olson, Mary K., 2004. "Are novel drugs more risky for patients than less novel drugs?," Journal of Health Economics, Elsevier, Elsevier, vol. 23(6), pages 1135-1158, November.
  5. Patricia M. Danzon & Y. Richard Wang & Liang Wang, 2005. "The impact of price regulation on the launch delay of new drugs-evidence from twenty-five major markets in the 1990s," Health Economics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 14(3), pages 269-292.
  6. Bardey, David & Bommier, Antoine & Jullien, Bruno, 2009. "Retail Price Regulation and Innovation: Reference Pricing in the Pharmaceutical Industry," IDEI Working Papers, Institut d'Économie Industrielle (IDEI), Toulouse 432, Institut d'Économie Industrielle (IDEI), Toulouse.
  7. Danzon, Patricia M. & Nicholson, Sean & Pereira, Nuno Sousa, 2005. "Productivity in pharmaceutical-biotechnology R&D: the role of experience and alliances," Journal of Health Economics, Elsevier, Elsevier, vol. 24(2), pages 317-339, March.
  8. Andrew Epstein & Scott Johnson, 2012. "Physician response to financial incentives when choosing drugs to treat breast cancer," International Journal of Health Care Finance and Economics, Springer, Springer, vol. 12(4), pages 285-302, December.
  9. Patricia M. Danzon & Eric L. Keuffel, 2013. "Regulation of the Pharmaceutical-Biotechnology Industry," NBER Chapters, National Bureau of Economic Research, Inc, in: Economic Regulation and Its Reform: What Have We Learned?, pages 407-484 National Bureau of Economic Research, Inc.
  10. Tannista Banerjee & Ralph Siebert, 2014. "The Impact of R&D Cooperations on Drug Variety Offered on the Market. Evidence from the Pharmaceutical Industry," CESifo Working Paper Series, CESifo Group Munich 4567, CESifo Group Munich.
  11. Sarkar, Salil K. & de Jong, Pieter J., 2006. "Market response to FDA announcements," The Quarterly Review of Economics and Finance, Elsevier, Elsevier, vol. 46(4), pages 586-597, September.
  12. Ando, Amy, 1998. "Delay on the Path to the Endangered Species List: Do Costs and Benefits Matter," Discussion Papers, Resources For the Future dp-97-43-rev, Resources For the Future.
  13. Jens Ludwig & Dave E. Marcotte & Karen Norberg, 2007. "Anti-depressants and Suicide," NBER Working Papers 12906, National Bureau of Economic Research, Inc.
  14. Ernst Berndt & Iain Cockburn & Karen Grépin, 2006. "The Impact of Incremental Innovation in Biopharmaceuticals," PharmacoEconomics, Springer, Springer, vol. 24(2), pages 69-86, December.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:rje:randje:v:25:y:1994:i:autumn:p:402-423. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.