Umeå Economic Studies

No 462: The Impact of Generic Competition on Brand Name Market Shares - Evidence from Micro Data

Abstract: This paper analyses how market shares for brand name drugs are affected by generic competition. The analysis is based on micro data for twelve original drugs, wich are all subject to generic competition. For five of these drugs, we find that the price of the original relative to the average price of the generic substitutes significantly affects the market share of the original. In addition, the introduction of a so called "reference price" system appears to have had a significant impact on the market share of five original drugs.

Keywords:Pharmeceutical industry, Patent expiration, micro data.

JEL-Codes:L65,I11

21 pages, 1998

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