Graduation Year
2014
Document Type
Dissertation
Degree
Ph.D.
Degree Granting Department
Economics
Major Professor
Bradley P. Kamp, Ph.D.
Co-Major Professor
Gabriel Picone, Ph.D.
Committee Member
Andrei Barbos, Ph.D.
Committee Member
Aysegul Timur, Ph.D.
Keywords
European pharmaceutical industry, Hedonic regression, Panel data, Price competition, Pricing and reimbursement regulation
Abstract
The purpose of this dissertation is to examine the extent of competition between generic products and therapeutic substitutes under different regulatory regimes in the European Union
(EU) pharmaceutical industry. In particular, this study investigates generic competition among the five largest European pharmaceutical markets; the United Kingdom, Germany, France, Italy
and Spain, with comprehensive IMS data for 10 years (1994-2003), in order to estimate the effect of generic entry on drug prices at the product level. This analysis finds that generic entry
has a negative effect on prices in countries with free pricing originator market, whereas in EU countries with strict price and reimbursement regulation, generic competition is ineffective and/or counterproductive. Fewer generics and less competitive late entrants are consistent with incentives in regulated environments: low regulated prices for originator products discourage
generic entry following patent expiration. These findings suggest that regulation of both manufacturers' prices and retail pharmacy prices undermines price competition in the off-patent sector, and that budgetary savings from generic price competition are not realized in countries with strict regulatory systems.
Scholar Commons Citation
Colak, Berna, "Generic Competition and Price Regulation in the European Union Pharmaceutical Market: The Case of Cardiovascular Medicines" (2014). USF Tampa Graduate Theses and Dissertations.
https://digitalcommons.usf.edu/etd/5000
