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Patents, Price Controls and Access to New Drugs: How Policy Affects Global Market Entry

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  • Jean O. Lanjouw

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    Abstract

    We consider how patent rights and price regulation affect whether new drugs are marketed in a country, and how quickly. The analysis covers a large sample of 68 countries at all income levels and includes all drug launches over the period 1982-2002. It uses newly compiled information on legal and regulatory policy, and is the first systematic analysis of the determinants of drug launch in poor countries. Price control tends to discourage rapid product entry, while the results for patents are mixed. There is evidence that local capacity to innovate matters and that international pricing externalities may play a role.

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    File URL: http://www.cgdev.org/content/publications/detail/2679
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    Bibliographic Info

    Paper provided by Center for Global Development in its series Working Papers with number 61.

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    Length: 53 pages
    Date of creation: Jun 2005
    Date of revision:
    Handle: RePEc:cgd:wpaper:61

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    Web page: http://www.cgdev.org

    Related research

    Keywords: patent; drugs; access; market entry; price control;

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    Cited by:
    1. Roy, Santanu & Saggi, Kamal, 2012. "Equilibrium parallel import policies and international market structure," Journal of International Economics, Elsevier, vol. 87(2), pages 262-276.
    2. Patricia M. Danzon & Eric L. Keuffel, 2013. "Regulation of the Pharmaceutical-Biotechnology Industry," NBER Chapters, in: Economic Regulation and Its Reform: What Have We Learned?, pages 407-484 National Bureau of Economic Research, Inc.
    3. Padmashree Gehl Sampath, 2010. "Economic Aspects of Access to Medicines after 2005: Product Patent Protection and Emerging Firm Strategies in the Indian Pharmaceutical Industry," Working Papers id:3336, eSocialSciences.
    4. Patricia M. Danzon & Andrew J. Epstein, 2008. "Effects of Regulation on Drug Launch and Pricing in Interdependent Markets," NBER Working Papers 14041, National Bureau of Economic Research, Inc.
    5. Ghauri, Pervez N. & Rao, P.M., 2009. "Intellectual property, pharmaceutical MNEs and the developing world," Journal of World Business, Elsevier, vol. 44(2), pages 206-215, April.
    6. repec:hal:wpaper:halshs-00566800 is not listed on IDEAS
    7. Nebibe Varol & Joan Costa-i-Font & Alistair McGuire, 2011. "Explaining Early Adoption on New Medicines: Regulation, Innovation and Scale," CESifo Working Paper Series 3459, CESifo Group Munich.
    8. Emilio Archila & Gabriel Carrasquilla & Marcela Meléndez & Juan Pablo Uribe, 2006. "Estudio sobre la propiedad intelectual en el sector farmacéutico colombiano," INFORMES DE INVESTIGACIÓN 002622, FEDESARROLLO.
    9. Lee G. Branstetter & Chirantan Chatterjee & Matthew Higgins, 2011. "Regulation and Welfare: Evidence from Paragraph IV Generic Entry in the Pharmaceutical Industry," NBER Working Papers 17188, National Bureau of Economic Research, Inc.

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