• Media type: E-Article
  • Title: Entry in theADHDdrugs market: Welfare impact of generics and me‐too's
  • Contributor: Bokhari, Farasat A. S.; Fournier, Gary M.
  • Published: Wiley, 2013
  • Published in: The Journal of Industrial Economics, 61 (2013) 2, Seite 339-392
  • Language: English
  • DOI: 10.1111/joie.12017
  • ISSN: 0022-1821; 1467-6451
  • Origination:
  • Footnote:
  • Description: 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 forADHDdrugs 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.