Using novel data from the pharmaceutical industry, we study product prices and innovation around mergers. Exploiting within‐deal variation in product market consolidation, we show that prices increase more for drugs in consolidating markets than for matched control drugs. Estimates indicate a 2% average price effect that persists for about one year. Price increases expand with acquirer‐target product similarity and are more pronounced within less competitive product markets with fewer players and no generic competition. Examination of trade‐offs reveals these deals generate significant shareholder value. They also spur labeling and other manufacturing‐related innovation, but not the development of new drugs.

中文翻译：

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兼并、产品价格和创新：来自制药行业的证据

利用来自制药行业的新数据，我们研究产品价格和围绕合并的创新。利用产品市场整合的交易内差异，我们发现整合市场中的药品价格比匹配的对照药品的价格上涨更多。据估计，2% 的平均价格效应会持续大约一年。价格上涨随着收购方目标产品的相似性而扩大，并且在竞争较少、参与者较少且没有一般竞争的产品市场中更为明显。对权衡的审查表明，这些交易产生了巨大的股东价值。它们还刺激标签和其他与制造相关的创新，但不会刺激新药的开发。