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The quality and reliability of medical communication for branded drug adoption is extremely critical, not only for safeguarding patient interests but also for ensuring successful investments by multinational pharmaceutical firms. This paper predicts doctors’ prescribing intentions based on communication relationship among factors for late entrant branded drugs, compared with pioneering brand choice, for treating chronic diseases such as hypertension.

The constructs were validated with structural equation model for a sample set of 151 doctors from private hospitals in the National Capital Region of India.

This research reveals communication drivers and draws on theory to suggest that the doctor’s behavioural prescription intentions, subject to social influence from their colleagues, leads to lower adoption responses.

Given that limitations on sample size are often unavoidable, this study reveals that, due to the availability of substituting brands, alternate therapeutic routes and lack of availability of a practical guide for prescription, a communication model needs to be developed and validated.

Furthermore, managers of pharmaceutical firms should differentiate between the effects of direct and indirect communication–integration efforts for minimizing uncertainty in drug adoption in the context of the fragmented and unpredictable Indian market.

A late entrant may lose its dominant market share to alternate brands from other suppliers due to communication gaps in an unstructured market, leading to low adoption intentions. The study provides business theorists, drug marketers and health-care professionals with unique insights into specific communication drivers of prescribing decisions, aimed at ensuring reliable and appropriate drug adoption in Indian markets.

This paper aims to explore market dynamics and strategic issues that contribute to a late entrant's success in achieving market leadership in the prescription (Rx) and over‐the‐counter (OTC) markets. In the Rx market, consumers must receive physicians' approval before purchasing the product. In the OTC market, consumers make the final drug choice.

Data on sales (both Rx and OTC) and direct‐to‐consumer advertising expenditures for nine gastrointestinal drug products were obtained covering a 17‐year period. Ordinary least squares regression was employed.

The findings show that late‐market entrants, despite existing challenges, can become market leaders. This applies to both the Rx and OTC markets, via varying mechanisms.

This study is unique in demonstrating the differential mechanism in achieving market success for late entrants in the Rx and OTC markets.

The purpose of this paper is to take a close look at competition among the generic entrants during the first three years after patent expiration and examine whether there is a first mover advantage. Pharmaceutical markets experience the entry of numerous generic firms upon expiration of the brand firm’s patent.

A random effect nested logit model of competition that allows for competition between the brand drug and generics, and among multiple generic drugs is specified. The model accommodates the effects of prices, detailing, sampling, journal advertising, time-in-market and molecule-specific characteristics. The model is estimated on cross-section time-series data for 49 molecules in which the brand drug lost patent exclusivity between 1992 and 2000.

Strong evidence that the early generic entrant enjoys a substantial market share and profit advantage over the second and the third entrants, after controlling for differences in marketing activities was found. In addition, evidence suggesting that the advantage is due to the response of the retail pharmacy channel and due to differential effectiveness of advertising and pricing between earlier versus later entrants was found.

This paper is the first to empirically model first mover advantage among undifferentiated products. The findings are useful for regulators in pharmaceutical and healthcare industries. They can also shed light on other industries where there is little or no quality differentiation, such as commodity trading, open-source software distribution and online banking.

This paper aims to study the effects of order of market entry on market share in prescription (Rx) and over‐the‐counter (OTC) pharmaceutical drugs market.

Data on sales, price, direct‐to‐physicians (DTP) advertising, and direct‐to‐consumers (DTC) advertising for three Rx drugs categories and two OTC drugs categories were obtained for the period, January 1998 to December 1999. A log‐log statistical model was estimated using OLS methodology.

There is a significant order of entry effect on market share in both Rx and OTC drugs categories. This effect is higher in magnitude in the OTC category than in the Rx category. The effects of price, and DTP and DTC advertising are also significant. The differential effects of DTP and DTC advertising in the Rx and OTC categories are intuitive.

This study is unique in studying the differential effects of order‐of‐entry, and DTP and DTC advertising on market share in Rx and OTC drugs product categories.

The emergence of a pharmaceutical drug as a late entrant in a homogeneous category is a relevant issue for strategy implementation in the pharmaceutical industry. This paper aims to suggest a methodology for making pre-launch forecasts with a complete lack of information for a late entrant.

The diffusion process of the emerging entrant is estimated using the diffusion dynamics of pre-existing drugs, after an appropriate assessment of the drug’s entrance point. The authors’ methodology is applied to study the late introduction of a pharmaceutical drug in Italy within the category of ranitidine. Historical data of seven already active drugs in the category are used to assess and estimate ex ante the dynamics of a late entrant (Ulkobrin).

The results of applying the procedure to the ranitidine market reveal a high degree of accuracy between the ex post observed values of the late entrant and its ex ante mean predicted trajectory. Moreover, the assessed launch date corresponds to the actual date.

The category has to be homogeneous to ensure a high degree of similarity among the existing drugs and the late entrant. For this reason, radical innovations cannot be forecast with this methodology.

The proposed approach contributes to the still challenging research field of pre-launch forecasting by estimating the dynamic features of a homogeneous category and exploiting them for forecasting purposes.

The Supreme Court’s decision in Federal Trade Commission v. Actavis, Inc. is a challenge to conventional antitrust analysis. Conventional civil antitrust cases are decided by a preponderance of the evidence. This means that conduct challenged under the rule of reason is only condemned if the conduct resulted in more competitive harm in the actual world than a world without the alleged violation. Under conventional analysis, the intent of the parties also plays only a supporting role in determining whether the conduct was anticompetitive. A holder of a valid patent has a right to exclude others practicing the patented technology. And, the patent holder is not assumed to have market power because it expended resources in maintaining exclusionary rights. Actavis creates doubts about these propositions in circumstances beyond the “reverse” payment settlement of a patent suit that may have delayed an alleged infringer market entry. This chapter explores whether applying Actavis logic to antitrust litigation can result in condemnation of practices where there is little chance of an anticompetitive effect, where the patent holder likely has a valid and infringed patent, where there is little reason to believe that the patent holder has market power, and where only one party, or no parties, to an agreement have an anticompetitive intent. This chapter also investigates whether Actavis creates new problems with standing analysis, damages calculations, and the balancing of efficiencies against anticompetitive effects. Nevertheless, the lower courts have begun to extend the logic of Actavis. This is apparent in the condemnation of no-Authorized-generic settlements.

The purpose of this paper is to examine the debate about brand marketing that occurred as part of the 1930s consumer movement and continued after the Second World War in academic and regulatory circles.

This paper presents an historical account of the anti-brand marketing movement using a qualitative approach. It examines both primary and secondary historical sources as well as legal statutes, regulatory agency actions, judicial cases and newspaper and trade journal stories.

In response to the rise of brand marketing in the latter 1800s and early 1900s, the USA experienced an anti-brand marketing movement that lasted half a century. The first stage was public as part of the consumer movement but was overshadowed by the product safety and truth-in-advertising concerns. The consumer movement stalled when the USA entered the Second World War, but brand marketing continued to raise questions during the war as the US government attempted to regulate the provisions of goods during the war. After the war, the public accepted brand marketing. Continuing anti-brand marketing criticism was largely confined to academic writings and regulatory activities. Ultimately, many of the stage-two challenges to brand marketing went nowhere, but a few led to regulations that continue today.

This paper is the first to recognize a two-stage anti-brand marketing movement in the USA from 1929 to 1980 that has left a small but significant modern-day regulatory legacy.

This research aims to provide an empirical comparison of the results of three brands' marketing defence strategies used in advance of generic brands entering the market. By reviewing the effectiveness of these strategies, this research looks to extend the research on marketing defence strategies into the importance of anticipating competitor launches.

A data set containing 243 weeks of scanned sales for 21 generic brands was used in a regression model aimed at measuring the effectiveness of each brand's defence strategies in deterring entry and limiting the market share of these generic brands.

The analysis shows that several marketing mix components were effective in limiting the impact of generic brands. What was critical to each component's success was ensuring that they were implemented before the launch of the generic brands.

This research has the limitation of being confined to a category of pharmaceutical allergy brands, which limits generalisation of the findings.

The managerial relevance of this research has two parts. First, it will encourage managers to move from implementing strategies in reaction to a competitor launch to implementing strategies in advance of their entry. Second, it provides insights into the effectiveness of several strategic options for brands facing the entry of generic brands.

This study brings together literature regarding entry deterrence and market share loss prevention to help highlight the importance of proactive marketing defence strategies in reducing both the number of entrants and the amount of market share lost. It uses a data set to provide an empirical review of a range of marketing mix components used by pharmaceutical brands against low‐price generic brands.

The Federal Trade Commission (FTC) has initiated policies and legal challenges that have shaped the evolution of competition in healthcare. This chapter discusses not only discusses the current matters in healthcare competition, but it also gives a history of past issues faced by the FTC and the approaches used to resolve them. These FTC actions range from challenges to hospital mergers to preventing “reverse payments” from patent holders to generic entrants in pharmaceuticals. Ultimately the healthcare industry faces many unique regulatory and competitive aspects that, while challenging, do not require special rules.

This paper aims to study the post-patent ethical drug market and simulate the impact of Patient Protection and Affordable Care Act (ACA) on individuals, health-care providers and pharmaceutical firms. US policymakers have been looking at various ways to curb rising health-care costs in USA, including ways to promote the use of generic drugs in lieu of brand drugs. In this broader context, the implementation of ACA in December 2013 will introduce major changes in the pharmaceutical market.

To fully understand the impact of such policy changes, we develop a structural model to study consumers’ buying behavior and firm competition in the post-patent ethical drug markets. We use the estimated model parameters to conduct four policy simulations to illustrate the effect of Obamacare on increasing the relative size of price-insensitive segment, reducing price sensitivity in the price-sensitive segment, providing brand price discount to Medicare patients previously in the “donut hole” and the effect of change in people’s attitude toward generics.

Our model estimation reveals two classes of consumers with different price sensitivities. This heterogeneity explains the increase in the brand price after generic entry. We identify consumers’ switching costs between generic and brand drugs, as well as among different generics. From the policy simulation, we find that except the closure of Medicare donut hole, all other policy changes lead to increased usage of the focal molecule, and the efforts to increase insurance coverage and reduce the out of pocket payment for prescription drugs lead to increase in firm profit.

This paper is the first to illustrate the potential policy effect of Obamacare through a structural model on post-patent ethical drug market.