Entry in the ADHD drugs market: Welfare impact of generics and me-toos

Bokhari, Farasat A. S. ORCID: https://orcid.org/0000-0001-5418-8078 and Fournier, Gary M. (2013) Entry in the ADHD drugs market: Welfare impact of generics and me-toos. Journal of Industrial Economics, 61 (2). 339–392. ISSN 1467-6451

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Abstract

Recent decades have seen a growth in treatments for attention deficit hyperactivity disorder (ADHD) including many branded and generic drugs. In the early 2000's, new drug entry dramatically altered market shares. We estimate a demand system for ADHD drugs and assess the welfare impact of new drugs. We find that entry induced large welfare gains by reducing prices of substitute drugs, and by providing alternative delivery mechanisms for existing molecules. Our results suggest that the success of follow-on patented drugs may come from unanticipated innovations like delivery mechanisms, a factor ignored by proposals to retard new follow-on drug approvals.

Item Type:	Article
Faculty \ School:	Faculty of Social Sciences > School of Economics
UEA Research Groups:	Faculty of Social Sciences > Research Groups > Industrial Economics Faculty of Social Sciences > Research Centres > Centre for Competition Policy
Depositing User:	Julie Frith
Date Deposited:	16 Jan 2013 16:15
Last Modified:	14 May 2023 23:49
URI:	https://ueaeprints.uea.ac.uk/id/eprint/40801
DOI:	10.1111/joie.12017

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