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Drug competition and voluntary exit

Author

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  • Virabhak, Suchin
  • Sohn, Wook

Abstract

We use a duration model to find evidence that drug exit is exacerbated by generic competition. However, the impact on drug exit of competition with other branded drugs within a drug's therapeutic class is not statistically significant.

Suggested Citation

  • Virabhak, Suchin & Sohn, Wook, 2008. "Drug competition and voluntary exit," Economics Letters, Elsevier, vol. 101(1), pages 34-37, October.
  • Handle: RePEc:eee:ecolet:v:101:y:2008:i:1:p:34-37
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    References listed on IDEAS

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    1. Rebecca Henderson & Iain Cockburn, 1996. "Scale, Scope, and Spillovers: The Determinants of Research Productivity in Drug Discovery," RAND Journal of Economics, The RAND Corporation, vol. 27(1), pages 32-59, Spring.
    2. James W. Hughes & Michael J. Moore & Edward A. Snyder, 2002. ""Napsterizing" Pharmaceuticals: Access, Innovation, and Consumer Welfare," NBER Working Papers 9229, National Bureau of Economic Research, Inc.
    3. 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 331-350, October.
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