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Evergreening, patent challenges, and effective market life in pharmaceuticals

Author

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  • Hemphill, C. Scott
  • Sampat, Bhaven N.

Abstract

Observers worry that generic patent challenges are on the rise and reduce the effective market life of drugs. A related concern is that challenges disproportionately target high-sales drugs, reducing market life for these “blockbusters.”

Suggested Citation

  • Hemphill, C. Scott & Sampat, Bhaven N., 2012. "Evergreening, patent challenges, and effective market life in pharmaceuticals," Journal of Health Economics, Elsevier, vol. 31(2), pages 327-339.
  • Handle: RePEc:eee:jhecon:v:31:y:2012:i:2:p:327-339
    DOI: 10.1016/j.jhealeco.2012.01.004
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    References listed on IDEAS

    as
    1. 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.
    2. Filson, Darren & Oweis, Ahmed, 2010. "The impacts of the rise of Paragraph IV challenges on startup alliance formation and firm value in the pharmaceutical industry," Journal of Health Economics, Elsevier, vol. 29(4), pages 575-584, July.
    3. Henry G. Grabowski & Margaret Kyle, 2007. "Generic competition and market exclusivity periods in pharmaceuticals," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 28(4-5), pages 491-502.
    4. Panattoni, Laura E., 2011. "The effect of Paragraph IV decisions and generic entry before patent expiration on brand pharmaceutical firms," Journal of Health Economics, Elsevier, vol. 30(1), pages 126-145, January.
    5. Haiden Huskamp & Julie Donohue & Catherine Koss & Ernst Berndt & Richard Frank, 2008. "Generic Entry, Reformulations and Promotion of SSRIs in the US," PharmacoEconomics, Springer, vol. 26(7), pages 603-616, July.
    6. Patricia M. Danzon & Michael F. Furukawa, 2011. "Cross-National Evidence on Generic Pharmaceuticals: Pharmacy vs. Physician-Driven Markets," NBER Working Papers 17226, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Lee Branstetter & Chirantan Chatterjee & Matthew J. Higgins, 2014. "Starving (or Fattening) the Golden Goose?: Generic Entry and the Incentives for Early-Stage Pharmaceutical Innovation," NBER Working Papers 20532, National Bureau of Economic Research, Inc.
    2. Murray L. Aitken & Ernst R. Berndt & Barry Bosworth & Iain M. Cockburn & Richard Frank & Michael Kleinrock & Bradley T. Shapiro, 2013. "The Regulation of Prescription Drug Competition and Market Responses: Patterns in Prices and Sales following Loss of Exclusivity," NBER Chapters,in: Measuring and Modeling Health Care Costs, pages 243-271 National Bureau of Economic Research, Inc.
    3. Eric Helland & Seth A. Seabury, 2016. "Are Settlements in Patent Litigation Collusive? Evidence from Paragraph IV Challenges," NBER Working Papers 22194, National Bureau of Economic Research, Inc.
    4. Ernst R. Berndt & Rena M. Conti & Stephen J. Murphy, 2017. "The Landscape of US Generic Prescription Drug Markets, 2004-2016," NBER Working Papers 23640, National Bureau of Economic Research, Inc.
    5. María José Abud Sittler & Bronwyn Hall & Christian Helmers, 2015. "An Empirical Analysis of Primary and Secondary Pharmaceutical Patents in Chile," NBER Working Papers 20995, National Bureau of Economic Research, Inc.
    6. Cotropia, Christopher A. & Lemley, Mark A. & Sampat, Bhaven, 2013. "Do applicant patent citations matter?," Research Policy, Elsevier, vol. 42(4), pages 844-854.
    7. Comino, Stefano & Graziano, Clara, 2015. "How many patents does it take to signal innovation quality?," International Journal of Industrial Organization, Elsevier, vol. 43(C), pages 66-79.
    8. Chatterjee, Chirantan & Kubo, Kensuke & Pingali, Viswanath, 2015. "The consumer welfare implications of governmental policies and firm strategy in markets for medicines," Journal of Health Economics, Elsevier, vol. 44(C), pages 255-273.
    9. Sebastian Böhm & Volker Grossmann & Holger Strulik, 2018. "R&D-Driven Medical Progress, Health Care Costs, and the Future of Human Longevity," CESifo Working Paper Series 6897, CESifo Group Munich.
    10. repec:bla:ausecr:v:49:y:2016:i:4:p:413-431 is not listed on IDEAS
    11. Pierre Azoulay & Joshua S. Graff Zivin & Danielle Li & Bhaven N. Sampat, 2015. "Public R&D Investments and Private-sector Patenting: Evidence from NIH Funding Rules," NBER Working Papers 20889, National Bureau of Economic Research, Inc.
    12. Böhm, Sebastian & Grossmann, Volker & Strulik, Holger, 2017. "R&D-driven medical progess, health care costs, and the future of human longevity," Center for European, Governance and Economic Development Research Discussion Papers 325, University of Goettingen, Department of Economics.
    13. Eric Budish & Benjamin N. Roin & Heidi Williams, 2015. "Do Firms Underinvest in Long-Term Research? Evidence from Cancer Clinical Trials," American Economic Review, American Economic Association, vol. 105(7), pages 2044-2085, July.
    14. Eric Budish & Benjamin Roin & Heidi Williams, 2013. "Do fixed patent terms distort innovation? Evidence from cancer clinical trials," Discussion Papers 13-001, Stanford Institute for Economic Policy Research.
    15. Wagner, Stefan & Wakeman, Simon, 2016. "What do patent-based measures tell us about product commercialization? Evidence from the pharmaceutical industry," Research Policy, Elsevier, vol. 45(5), pages 1091-1102.
    16. Neha Bairoliya & Pinar Karaca-Mandic & Jeffrey S. McCullough & Amil Petrin, 2017. "Consumer Learning and the Entry of Generic Pharmaceuticals," NBER Working Papers 23662, National Bureau of Economic Research, Inc.
    17. Bhaven N. Sampat, 2015. "Intellectual property rights and pharmaceuticals: The case of antibiotics," WIPO Economic Research Working Papers 26, World Intellectual Property Organization - Economics and Statistics Division.
    18. Hazel V. J. Moir, 2013. "Fabricating Invention: The Patent Malfunction of Australian Patent Law," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 20(2), pages 21-38.

    More about this item

    Keywords

    Pharmaceuticals; Patents; Innovation; Hatch–Waxman;

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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