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Determinants of drug launch delay in pre-TRIPS India: A survival analysis approach

Author

Listed:
  • Saradindu Bhaduri

    () (Centre for Studies in Science Policy, Jawaharlal Nehru University New Delhi)

  • Thomas Brenner

    () (Department of Geography, Philipps University Marburg)

Abstract

The dynamics of drug launch has been an under-researched area. Most of the studies in this field focus on developed countries, quite uniform in terms of disease profile and regulatory framework, and analyse whether stringency in regulation influences launch delay. Developing countries, in contrast, have diverse disease profiles and weaker forms of regulation. A limited set of studies, undertaken in recent years, on the diffusion of new drugs in developing countries indeed conjectures importance of such factors in shaping drug launch dynamics. We investigate the delay of new drug launch in India for drugs launched in the German market during 1990-2004, when, due to weak IPR, not only the innovators but also the domestic firms could launch new drug molecules in the country, making drug launch dynamics interesting to explore. The paper finds that global commercial success of a new drug, market share, first mover advantage, and the threat of imposition of strong IPR system shortens delay. Innovativeness of a new drug, surprisingly, does not have much significant impact on delay.

Suggested Citation

  • Saradindu Bhaduri & Thomas Brenner, 2011. "Determinants of drug launch delay in pre-TRIPS India: A survival analysis approach," Working Papers on Innovation and Space 2011-05, Philipps University Marburg, Department of Geography.
  • Handle: RePEc:pum:wpaper:2011-05
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    References listed on IDEAS

    as
    1. Patricia M. Danzon & Y. Richard Wang & Liang Wang, 2005. "The impact of price regulation on the launch delay of new drugs-evidence from twenty-five major markets in the 1990s," Health Economics, John Wiley & Sons, Ltd., vol. 14(3), pages 269-292.
    2. Bhaduri, Saradindu & Ray, Amit Shovon, 2006. "A game theoretic model of drug launch in India," Health Economics, Policy and Law, Cambridge University Press, vol. 1(01), pages 23-39, January.
    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.
    4. Gorecki, Paul K., 1986. "The importance of being first : The case of prescription drugs in Canada," International Journal of Industrial Organization, Elsevier, vol. 4(4), pages 371-395, December.
    5. Aidan Hollis, 2002. "The importance of being first: evidence from Canadian generic pharmaceuticals," Health Economics, John Wiley & Sons, Ltd., vol. 11(8), pages 723-734.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Drug launch delay; Germany; India; survival analysis;

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics

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