The Anti-Competitive Effects of Brand-Controlled "Pseudo- Generics" in the Canadian Pharmaceutical Market
Brand-name pharmaceutical firms in Canada, upon the expiry of their patent, always license a "pseudo- generic" firm to compete directly against generic firms. This pseudo-generic is identical to the brand-name product, but is marketed as a generic, with the pseudo-generic firm receiving a distribution fee. This strategy deters entry into smaller drug markets, since the threat of pseudo-generic competition deters other generics from making the investment required to enter; and slows the process of entry by competing generic firms.
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Volume (Year): 29 (2003)
Issue (Month): 1 (March)
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References listed on IDEAS
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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.
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- Morton I. Kamien & Israel Zang, 1999. "Virtual Patent Extension by Cannibalization," Southern Economic Journal, Southern Economic Association, vol. 66(1), pages 117-131, July.
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