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

Farasat A. S. Bokhari; Gary M. Fournier

doi:10.1111/joie.12017

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

Farasat A. S. Bokhari, Gary M. Fournier

Research output: Contribution to journal › Article › peer-review

21 Citations (Scopus)

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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.

Original language	English
Pages (from-to)	339–392
Number of pages	54
Journal	Journal of Industrial Economics
Volume	61
Issue number	2
Early online date	11 Jul 2013
DOIs	https://doi.org/10.1111/joie.12017
Publication status	Published - 2013

Access to Document

10.1111/joie.12017Licence: CC BY-NC

joie12017
© 2013 The Authors. Journal of Industrial Economics published by John Wiley & Sons Ltd and the Editorial Board of The Journal of Industrial Economics This is an open access article under the terms of the Creative Commons Attribution-NonCommercial License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited and is not used for commercial purposes.
Final published version, 449 KBLicence: CC BY-NC

Cite this

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