Longitudinal Analysis of Generic Substitution
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Using an extensive longitudinal dataset extracted from the Norwegian Prescription Database (NorPD), Norwegian title: Reseptregisteret, from the Norwegian Institute of Public Health (NIPH) containing all prescriptions written in the period May 2004 to June 2007, we selected two particular drugs (chemical substances) used against cholesterol. The two brand-name products on the Norwegian markets are Provachol (Anatomic Therapeutic Chemical (ATC) classification code C10AA03) and Zocor (ATC code C10AA01). The generics are Provastatine and Simastatine. We find that prices have a negative impact on transitions in the sense that an increase in the brand price will reduce the transition from generics to brand and likewise an increase in the generic price will reduce the transition from brand to generics. Moreover, we find that the older a male doctor is, the more likely it is that he continues to prescribe the brand-name product.
KeywordsGenerics Substitution Microdata Random utility model Longitudinal data
JELC35 I 18 L 65
We wish to acknowledge the services of the NorPD (and particularly of Kari Furu) in providing data. This research is supported by grants from the Norwegian Research Council. Financial support to M. Locatelli from The Frisch Centre, Oslo is gratefully acknowledged.
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