Generic competition in the US pharmaceutical industry


Journal Article

We develop a simultaneous equations estimation framework to understand the interactions among generic entry, prices, and market shares. We base our estimates on a panel data sample of 40 brand-name drugs that first experienced generic competition during the period July 1992-January 1998. We find that generic share and price are simultaneously determined, while the number of generic entrants is a key determinant of generic market share and the generic-to-brand price ratio. In addition, we find generic competition to be particularly intense for blockbuster drugs, which experience significantly more generic entrants, price erosion, and generic penetration than other drugs.

Full Text

Duke Authors

Cited Authors

  • Saha, A; Grabowski, H; Birnbaum, H; Greenberg, P; Bizan, O

Published Date

  • February 1, 2006

Published In

Volume / Issue

  • 13 / 1

Start / End Page

  • 15 - 38

International Standard Serial Number (ISSN)

  • 1357-1516

Digital Object Identifier (DOI)

  • 10.1080/13571510500519905

Citation Source

  • Scopus