Determinants of drug launch delay in pre-TRIPS India: A survival analysis approach
AbstractThe dynamics of drug launch has been an under-researched area. Most of the studies in this field focus on developed countries, quite uniform in terms of disease profile and regulatory framework, and analyse whether stringency in regulation influences launch delay. Developing countries, in contrast, have diverse disease profiles and weaker forms of regulation. A limited set of studies, undertaken in recent years, on the diffusion of new drugs in developing countries indeed conjectures importance of such factors in shaping drug launch dynamics. We investigate the delay of new drug launch in India for drugs launched in the German market during 1990-2004, when, due to weak IPR, not only the innovators but also the domestic firms could launch new drug molecules in the country, making drug launch dynamics interesting to explore. The paper finds that global commercial success of a new drug, market share, first mover advantage, and the threat of imposition of strong IPR system shortens delay. Innovativeness of a new drug, surprisingly, does not have much significant impact on delay.
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Bibliographic InfoPaper provided by Philipps University Marburg, Department of Geography in its series Working Papers on Innovation and Space with number 2011-05.
Length: 26 pages
Date of creation: Dec 2011
Date of revision:
Drug launch delay; Germany; India; survival analysis;
Find related papers by JEL classification:
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology
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- 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,"
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- Aidan Hollis, 2002. "The importance of being first: evidence from Canadian generic pharmaceuticals," Health Economics, John Wiley & Sons, Ltd., vol. 11(8), pages 723-734.
- Grabowski, Henry G & Vernon, John M, 1992. "Brand Loyalty, Entry, and Price Competition in Pharmaceuticals after the 1984 Drug Act," Journal of Law and Economics, University of Chicago Press, vol. 35(2), pages 331-50, October.
- Bhaduri, Saradindu & Ray, Amit Shovon, 2006. "A game theoretic model of drug launch in India," Health Economics, Policy and Law, Cambridge University Press, vol. 1(01), pages 23-39, January.
- Gorecki, Paul K., 1986. "The importance of being first : The case of prescription drugs in Canada," International Journal of Industrial Organization, Elsevier, vol. 4(4), pages 371-395, December.
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