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Does Increased Price Competition Affect Entry of New Pharmaceutical Products?

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    In October 2002 a substitution reform was introduced in the Swedish Pharmaceuticals market. In this note, the effects of increased price competition due to the reform on the entry of new pharmaceutical products were studied. The results show that the reform did affect the entry behavior of generic manufacturers as they became more prone to enter new package sizes into the market after the reform, but also that there is considerable heterogeneity in entry behavior between different ATC-code groups for both brand name and generic products.

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    Paper provided by HUI Research in its series HUI Working Papers with number 26.

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    Length: 11 pages
    Date of creation: 01 Nov 2009
    Date of revision:
    Publication status: Published as Granlund, David and Niklas Rudholm, 'Does Increased Price Competition Affect Entry of New Pharmaceutical Products?' in Advances in Management and Applied Economics, 2011, pages 1-14.
    Handle: RePEc:hhs:huiwps:0026
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