Arbeitspapier

Authorized Generic Entry prior to Patent Expiry: Reassessing Incentives for Independent Generic Entry

Patent holders frequently attempt to mitigate the loss of monopoly power by authorizing generic entry prior to patent expiry (early entry). Competition in off-patent pharmaceutical markets may be adversely affected if early entry substantially impairs the attractiveness of subsequent market entry. I examine generic entry decisions made in the course of recent patent expiries to quantify the impact of early entry on incentives for generic entry. Using unique micro data and accounting for the endogeneity of early entry, I estimate recursive bivariate probit models of entry. Drug markets' pre-entry revenues largely determine both independent generic entry and early entry decisions. Early entry in turn has no significant impact on the likelihood of generic entry. Original drug producers appear to authorize generic entry prior to loss of exclusivity primarily fueled by rent-seeking rather than strategic entry-deterrence motives.

Sprache
Englisch

Erschienen in
Series: Munich Discussion Paper ; No. 2010-23

Klassifikation
Wirtschaft
Monopolization; Horizontal Anticompetitive Practices
Analysis of Health Care Markets
Intellectual Property and Intellectual Capital
Multiple or Simultaneous Equation Models: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
Thema
Generic Entry
Early Entry
Anticompetitive Practices
Pharmazeutische Industrie
Lizenz
Generika
Markteintritt
Wettbewerbsbeschränkung
Rent-Seeking
Schätzung
Deutschland

Ereignis
Geistige Schöpfung
(wer)
Appelt, Silvia
Ereignis
Veröffentlichung
(wer)
Ludwig-Maximilians-Universität München, Volkswirtschaftliche Fakultät
(wo)
München
(wann)
2010

DOI
doi:10.5282/ubm/epub.11476
Handle
URN
urn:nbn:de:bvb:19-epub-11476-2
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Appelt, Silvia
  • Ludwig-Maximilians-Universität München, Volkswirtschaftliche Fakultät

Entstanden

  • 2010

Ähnliche Objekte (12)