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Patent Races, “Me-Too” Drugs, and Generics: A Developing-World Perspective

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  • Alka Chadha

    () (Department of Economics, National University of Singapore)

  • Åke Blomqvist

    (Department of Economics, National University of Singapore)

Abstract

We build a model of pharmaceutical markets in the light of a patent race among competing firms. The incentive for R&D is the patent on either the breakthrough or the me-too drug. A feature of our model that has not been analyzed before is the prevalence of insurance in developed countries as opposed to developing countries, such that the true burden of financing R&D falls to a greater extent on the former than the latter. We suggest that generics drugs be allowed in low-income countries, particularly since most of them do not have a well-established and functioning pharmaceutical industry.

Suggested Citation

  • Alka Chadha & Åke Blomqvist, 2005. "Patent Races, “Me-Too” Drugs, and Generics: A Developing-World Perspective," Departmental Working Papers wp0513, National University of Singapore, Department of Economics.
  • Handle: RePEc:nus:nusewp:wp0513
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    File URL: http://www.fas.nus.edu.sg/ecs/pub/wp/wp0513.pdf
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    References listed on IDEAS

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    Cited by:

    1. Luiz Andrade & Catherine Sermet & Sylvain Pichetti, 2016. "Entry time effects and follow-on drug competition," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 17(1), pages 45-60, January.

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