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Review of Industrial Organization

, Volume 34, Issue 4, pp 373–388 | Cite as

Generic Entry into the Regulated Spanish Pharmaceutical Market

  • Iván Moreno-TorresEmail author
  • Jaume Puig-Junoy
  • Joan-Ramon Borrell
Article

Abstract

This paper empirically analyses entry by generic firms into the strictly regulated Spanish pharmaceutical market. We estimate a fixed effects negative binomial entry model using a panel of 77 active ingredient markets during the period 1999–2005. The results show that generic entry depends positively on revenues, the age of the market, and the number of previous brand-name competitors, and negatively on the number of generic incumbents. We also find that regulation may drive out competition since, contrary to what policy makers might expect, the system of reference pricing restrains generic entry.

Keywords

Generic entry Pharmaceutical industry Reference pricing 

JEL Classification

I11 L11 L65 

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Copyright information

© Springer Science+Business Media, LLC. 2009

Authors and Affiliations

  • Iván Moreno-Torres
    • 1
    Email author
  • Jaume Puig-Junoy
    • 1
  • Joan-Ramon Borrell
    • 2
  1. 1.Research Center for Economy and Health, Department of Economics and BusinessUniversitat Pompeu FabraBarcelonaSpain
  2. 2.Research Unit on Public Policeis and Economic Regulation, Departament de Política EconòmicaUniversitat de BarcelonaBarcelonaSpain

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