Abstract

Using a panel dataset of 78 branded drugs for the period January 2009 through March 2020, we examine whether brand prices react to the onset of generic competition. Contrary to the findings of several prior academic studies, we show that the rate of change of brand prices (both nominal and CPI-deflated) are significantly lower after generics enter the market; notably, we also find branded drug manufacturers raise their prices in the six-month period just before generic entry and lower them in the six-month period after, with the differences in the rates of change being highly significant. We also show in markets with an authorized generic and in ones with large pre-entry brand sales, manufacturers raise prices at a higher (or decrease CPI-deflated prices at a shallower) rate.

摘要

使用 2009 年 1 月至 2020 年 3 月期间 78 种品牌药物的面板数据集，我们研究了品牌价格是否对仿制药竞争的开始做出反应。与之前几项学术研究的结果相反，我们表明仿制药进入市场后品牌价格的变化率（名义价格和 CPI 缩减）显着降低；值得注意的是，我们还发现品牌药制造商在仿制药进入前的 6 个月内提高了价格，并在仿制药进入后的 6 个月内降低了价格，变化率的差异非常显着。我们还表明，在授权仿制药市场和进入前品牌销售量较大的市场中，制造商以更高的价格提高价格（或以较低的价格降低 CPI 缩减价格）。