Pharmaceutical regulation and pseudo - generics

Dissertação de mestrado em Economia Industrial e da Empresa

Pharmaceutical Generics, Vertical Product Differentiation, and Public Policy

This paper studies oligopolistic competition in off-patent pharmaceutical markets using a vertical product differentiation model. This model can explain the observation that countries with stronger regulations have smaller generic market shares. It can also explain the differences in observed regulatory regimes. Stronger regulation may be due to a higher proportion of production that is done by foreign firms. Finally, a closely related model can account for the observed increase in prices by patent owners after entry of generic producers.

Pharmaceutical generics, vertical product differentiation and public policy

This paper studies oligopolistic competition in off-patent pharmaceuticalmarkets using a vertical product differentiation model. This model canexplain the observation that countries with stronger regulations havesmaller generic market shares. It can also explain the differences inobserved regulatory regimes. Stronger regulation may be due to a higherproportion of production that is done by foreign firms. Finally, a closelyrelated model can account for the observed increase in prices by patentowners after entry of generic producers.

Génériques des médicaments antiépileptiques [Generics of antiepileptic drugs]

Generic substitution of antiepileptic drugs (EAD) have limited use because epilepsy is a chronic disease, seizure recurrence has an important impact of the quality of life and the potential risk of accidents. EADs have a narrow therapeutic window, non negligible side effects and complex interactions. Bioavailability of generic EADs, tested in healthy men during a limited period of time must be within the 90% IC, in which means that serum levels can range from 80% to 125% of the original drug. A slight drop in serum level could increase the risk of seizure recurrence, as indicated by several publications. Although no formal studies regarding cost effectiveness and the rate of seizure recurrence is available yet, the prevailing consensus recommends not to replace an original antiepileptic drug by a generic, due to the harmful risk of seizure recurrence.

Entry strategies into biosimilars: assessment of entry modes into the field of biosimilars from the perspective of pharmaceuticals, generics and biologics companies

Indústria farmacêutica de hoje está em transição. Como grandes blockbuster drogas estão perdendo ou estão prestes a perder a proteção de patente, e as grandes empresas farmacêuticas não estão substituindo os produtos com novas drogas químicas inovadoras, a indústria busca novas áreas de crescimento. Uma dessas áreas é o mercado de biossimilares, que está sendo inseridos por produtos farmacêuticos, genéricos e empresas de produtos biológicos. Mesmo que o grande potencial de mercado será acordado por volta de 2020, quando importantes blockbusters biológicos perder a proteção de patente, as empresas precisam decidir logo se querem participar ou não devido a elevadas barreiras à entrada técnicos, bem como de desenvolvimento de longo prazos. Como todas as empresas vêm de diferentes origens, compreendem capacidades diferentes e têm diferentes incentivos de entrada, a questão que surge é se esses fatos estão relacionados com as suas estratégias de entrada correspondentes. A tese utiliza estudos de caso de cada segmento da indústria farmacêutica - produtos farmacêuticos, biológicos e genéricos - e examina através de entrevistas semi-estruturadas, por isso que os participantes do estudo de caso entrevistados explicitamente escolhido sua estratégia de entrada. Os dados de entrevistas será então ligada a quadros estratégicos da revisão da literatura e irá ser utilizado para uma comparação global e análise. O estudo revelou que o fundo do participante do mercado que influenciam a sua estratégia de entrada. Os principais pontos de influência derivam tanto as barreiras à entrada, bem como os incentivos de entrada. A tese não é possível determinar o sucesso futuro do modo de entrada analisados no novo mercado.

Cognitive effects of masculine generics in German. An overview of empirical findings

This article presents a series of experiments which were conducted among native speakers of German to determine the influence of different types of German generics on the cognitive inclusion of women. Results indicate that the inclusion of women is higher with ‘non-sexist’ alternatives than with masculine generics, a tendency which was consistent across different studies. The different alternatives, however, showed different effects which also varied depending on the context. These results are discussed with regard to their practical consequences in situations such as nominating women and men for awards or political offices.

Name your favorite musician: Effects of masculine generics and of their alternatives in German

Feminist linguists claim that masculine forms used in a generic sense (e.g. he referring to a doctor irrespective of sex) facilitate the cognitive representation of men compared to women and make women less visible. A number of experimental studies have confirmed this assumption with regard to the English language. Concerning other languages, however, this question has been addressed only in very few studies, although gender is a much more pervasive grammatical category and masculine generics are more prominent in languages such as French, Spanish or German. This paper reports three experiments with native speakers of German which were conducted to determine the influence of different types of German generics on the cognitive inclusion of women. Results indicate that inclusion of women is higher with 'non-sexist' alternatives than with masculine generics, a tendency which was consistent over studies. But the different alternative forms show different effects which also vary depending on the context. These results are discussed with regard to their practical consequences in situations such as nominating women and men for awards, political offices etc.

Comparative physical-chemical characterization of encapsulated lipid-based isotretinoin products assessed by particle size distribution and thermal behavior analyses

Isotretinoin is the drug of choice for the management of severe recalcitrant nodular acne. Nevertheless, some of its physical-chemical properties are still poorly known. Hence, the aim of our study consisted to comparatively evaluate the particle size distribution (PSD) and characterize the thermal behavior of the three encapsulated isotretinoin products in oil suspension (one reference and two generics) commercialized in Brazil. Here, we show that the PSD, estimated by laser diffraction and by polarized light microscopy, differed between the generics and the reference product. However, the thermal behavior of the three products, determined by thermogravimetry (TGA), differential thermal (DTA) analyses and differential scanning calorimetry (DSC), displayed no significant changes and were more thermostable than the isotretinoin standard used as internal control. Thus, our study suggests that PSD analyses in isotretinoin lipid-based formulations should be routinely performed in order to improve their quality and bioavailability. (C) 2010 Elsevier B.V. All rights reserved.

Genetic and environmental contributions to educational attainment in Australia

The genetic and environmental contributions to educational attainment in Australia are examined using a multiple regression model drawn from the medical research literature. Data from a large sample of Australian twins are analysed. The findings indicate that at least as much as 50 percent and perhaps as much as 65 percent of the variance in educational attainments can be attributed to genetic endowments. It is suggested that only around 25 percent of the variance in educational attainments may be due to environmental factors, though this contribution is shown to be around 40 percent when adjustments for measurement error and assortative mating are made. The high fraction of the observed variation in educational attainments due to genetic differences is consistent with results reported by Heath et al. (Heath, A.C., Berg, K., Eaves, L.J., Solaas, M.H., Corey, L.A., Sundet, J., Magnus, P., Nance, W.E., 1985. Education policy and the heritability of educational attainment. Nature 314(6013), 734-736.), Tambs et al. (Tambs, K., Sundet, J.M., Magnus, P., Berg, K., 1989. Genetic and environmental contributions to the covariance between occupational status, educational attainment and IQ: a study of twins. Behavior Genetics 19(2), 209-222.), Vogler and Fulker (Vogler, G.P., Fulker, D.W., 1983. Familial resemblance for educational attainment. Behavior Generics 13(4), 341-354.) and Behrman and Taubman (Behrman, J., Taubman, P., 1989. Is schooling mostly in the genes? Nature-nurture decomposition using data on relatives. Journal of Political Economy 97(6), 1425-1446.), suggesting that the finding is robust. (C) 2001 Elsevier Science Ltd. All rights reserved.

Sistema de Preços de Referência e impacto sobre a despesa farmacêutica em Portugal

O sistema de comparticipação de medicamentos por Preços de Referência (SPR) foi implementado em Portugal tendo presente a necessidade de garantir o controlo da despesa farmacêutica, de incentivar a racionalização na utilização dos medicamentos bem como incrementar a respectiva acessibilidade. Os medicamentos – similares químicos, com a mesma dosagem e forma farmacêutica, com apresentações destinadas a indicações terapêuticas sobreponíveis – foram agrupados em Grupos Homogéneos. O Preço de Referência (PR) foi definido de acordo com o Preço de Venda ao Público (PVP) do medicamento genérico de PVP mais elevado, para cada GH (Grupo Homogéneo)[ ]. Este artigo pretende caracterizar o impacto do SPR sobre a despesa farmacêutica nacional, por intermédio de uma análise descritiva transversal, que incidiu sobre uma amostra constituída pelos quinze GH que lideraram a despesa farmacêutica pública no SPR, entre Janeiro e Setembro de 2003. Para o efeito, foram definidos indicadores específicos no âmbito da despesa farmacêutica, valor e volume de medicamentos consumidos. Em seguida foi investigado o impacto do SPR sobre a despesa farmacêutica total, bem como sobre a despesa farmacêutica no segmento do SPR, e ainda as repercussões sobre o equilíbrio entre a despesa pública e privada. Foi avaliada a informação recolhida relativa ao período anterior e posterior à implementação do sistema. O estudo permitiu concluir que entre os períodos anterior e posterior à implementação do SPR ocorreu um decréscimo na despesa farmacêutica total, associada ao aumento da despesa total com medicamentos genéricos e ao decréscimo da despesa total com medicamentos de marca. O PVP dos medicamentos de marca apresentou um perfil de alteração decrescente que se revelou muito sensível à implementação do SPR, ao contrário do que ocorreu no segmento dos medicamentos genéricos que se apresentou tendencialmente constante. O volume de medicamentos consumidos aumentou em termos de DDD (Doses Diárias Definidas), contudo diminuiu o número de apresentações dispensadas.

Price linkages in pharmaceutical markets

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Economics from the NOVA – School of Business and Economics

Exit strategies of Pharmaceutical multinational companies from Portugal and the successful implementation of new Portuguese companies

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and Economics

Price linkages in pharmaceutical markets

This paper studies the existing price linkage between generics and branded pharmaceuticals, in which the generic price must be a fraction of the latter. Using a vertical differentiation model, we look at the market equilibrium, the effects on the incentives for the brand producer to develop new products, and the possibility of predation by the brand producer over the generic firm. We find that the price linkage increases prices compared to no indexation and it may increase the incentives for the brand producer to expand its set of products. When prices are freely set, the branded firm may also want to expand a new product with a higher quality, but will prefer to remove the original one from the market. Predation may equally occur in both schemes but the price linkage may give fewer incentives for the branded firm to predate while compensating losses with a new drug.

Generic drugs in Spain: price competition vs. moral hazard

This paper examines competition between generic and brand-name drugs in the regulated Spanish pharmaceutical market. A nested logit demand model is specified for the three most consumed therapeutic subgroups in Spain: statins (anticholesterol), selective serotonin reuptake inhibitors (antidepressants) and proton pump inhibitors (antiulcers). The model is estimated with instrumental variables from a panel of monthly prescription data from 1999 to 2005. The dataset distinguishes between three different levels of patients’ copayments within the prescriptions and the results show that the greater the level of insurance that the patient has (and therefore the lower the patient’s copayment), the lower the proportion of generic prescriptions made by physicians. It seems that the low level of copayment has delayed the penetration of generics into the Spanish market. Additionally, the estimation of the demand model suggests that the substitution rules and promotional efforts associated with the reference pricing system have increased generic market share, and that being among the first generic entrants has an additional positive effect.