Predation in Off-Patent Drug Markets - HAL-SHS - Sciences de l'Homme et de la Société
Article Dans Une Revue Applied Economics Année : 2012

Predation in Off-Patent Drug Markets

Résumé

In 2009, Sanofi-Aventis, whose generic subsidiary is Winthrop, merges with the generic firm, Zentiva. This paper fills the gap in the theoretical literature concerning mergers in pharmaceutical markets. To prevent generic firms from increasing their market share, some brand-name firms produce generics themselves, called pseudo- generics. We develop a Cournot duopoly model by considering the pseudo-generics production as a mergers' catalyst. We show that a brand-name company always has an incentive to purchase its competitor. The key insight of this paper is that the brand-name laboratory can increase its merger gain by producing pseudo-generics beforehand. In some cases, pseudo-generics would not otherwise be produced and this production is then a predatory strategy.
Fichier principal
Vignette du fichier
1027.pdf (397.65 Ko) Télécharger le fichier
Origine Fichiers produits par l'(les) auteur(s)
Loading...

Dates et versions

halshs-00537018 , version 1 (17-11-2010)

Identifiants

Citer

Laurent Granier, Sébastien Trinquard. Predation in Off-Patent Drug Markets. Applied Economics, 2012, 44 (17), pp. 2171-2186. ⟨10.1080/00036846.2011.562169⟩. ⟨halshs-00537018⟩
194 Consultations
435 Téléchargements

Altmetric

Partager

More