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The Global Entry of New Pharmaceuticals: A Joint Investigation of Launch Window and Price

Author

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  • Verniers, I.W.J.
  • Stremersch, S.
  • Croux, C.

Abstract

Research on the launch of new products in the international realm is scarce. The present paper is the first to document how launch window (difference in months between the first worldwide launch and the subsequent launch in a specific country) and launch price are interrelated and how regulation influences both launch window and launch price. The research context is the global - 50 countries worldwide - launch of 58 new ethical drugs across 29 therapeutic areas. We show that the fastest launch occurs when the launch price is moderately high and the highest launch price occurs at a launch window of 85 months. We find that the health regulator acts strategically in that the extent to which it delays the launch of a new drug increases with the price of the new drug. We also find that regulation overall increases the launch window, except for patent protection. Surprisingly, regulation does not directly impact launch price. The descriptive information on average launch window and launch price and the interconnection between launch window and launch price allows managers in ethical drug companies to build more informed decisions for international market entry. This study also provides public policy analysts with more quantitative evidence regarding launch window and launch price on a broad sample of countries and categories.

Suggested Citation

  • Verniers, I.W.J. & Stremersch, S. & Croux, C., 2011. "The Global Entry of New Pharmaceuticals: A Joint Investigation of Launch Window and Price," ERIM Report Series Research in Management ERS-2011-010-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
  • Handle: RePEc:ems:eureri:23488
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    File URL: https://repub.eur.nl/pub/23488/ERS-2011-010-MKT.pdf
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    References listed on IDEAS

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    1. repec:eee:ijrema:v:25:y:2008:i:4:p:282-293 is not listed on IDEAS
    2. repec:eee:ijrema:v:25:y:2008:i:4:p:229-233 is not listed on IDEAS
    3. Stremersch, S. & Lemmens, A., 2008. "Sales Growth of New Pharmaceuticals Across the Globe: The Role of Regulatory Regimes," ERIM Report Series Research in Management ERS-2008-026-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    4. Christophe Van den Bulte, 2000. "New Product Diffusion Acceleration: Measurement and Analysis," Marketing Science, INFORMS, vol. 19(4), pages 366-380, June.
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    Citations

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    Cited by:

    1. S. Buxton & Kostas Nikolopoulos & M. Khammash & P. Stern, 2015. "Modelling and Forecasting Branded and Generic Pharmaceutical Life Cycles: Assessment of the Number of Dispensed Units," Working Papers 15004, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
    2. Birg, Laura, 2015. "Parallel trade and reimbursement regulation," Center for European, Governance and Economic Development Research Discussion Papers 253, University of Goettingen, Department of Economics.
    3. Nikolopoulos, Konstantinos & Buxton, Samantha & Khammash, Marwan & Stern, Philip, 2016. "Forecasting branded and generic pharmaceuticals," International Journal of Forecasting, Elsevier, vol. 32(2), pages 344-357.
    4. repec:eee:ijrema:v:31:y:2014:i:1:p:65-77 is not listed on IDEAS
    5. Birg, Laura, 2016. "External reference pricing and the choice of country baskets and pricing rules," Center for European, Governance and Economic Development Research Discussion Papers 279, University of Goettingen, Department of Economics.

    More about this item

    Keywords

    entry timing; international new product launch; launch price; launch window; pharmaceutical; regulation;

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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