Characterizing Markets for Biopharmaceutical Innovations: Do Biologics Differ from Small Molecules?

48 Pages Posted: 4 Jun 2010 Last revised: 5 Apr 2023

See all articles by Mark R. Trusheim

Mark R. Trusheim

Massachusetts Institute of Technology (MIT) - Sloan School of Management

Murray Aitken

IMS Institute for Healthcare Informatics

Ernst R. Berndt

Massachusetts Institute of Technology (MIT) - Sloan School of Management; National Bureau of Economic Research (NBER)

Date Written: May 2010

Abstract

Much has been written about the seemingly less formal, more agile biotechnology industry and its extensive interactions with academia and startups, as well as its distinct scientific, manufacturing and regulatory profile. Employing a data base encompassing all 96 biologics and 212 small molecules newly launched in the U.S. between 1998Q1 and 2008Q4, we compare their downstream clinical and commercial characteristics -- therapeutic class concentration, launch delays following approval, Orphan Drug and priority review status, supplemental indications, black box warning and safety record, and pricing and revenue growth during the product life cycle. We conclude that the market dynamics of biologics differ substantially from those of small molecules, although therapeutic class composition plays a major role.

Suggested Citation

Trusheim, Mark R. and Aitken, Murray and Berndt, Ernst R., Characterizing Markets for Biopharmaceutical Innovations: Do Biologics Differ from Small Molecules? (May 2010). NBER Working Paper No. w16014, Available at SSRN: https://ssrn.com/abstract=1615306

Mark R. Trusheim (Contact Author)

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Murray Aitken

IMS Institute for Healthcare Informatics ( email )

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Ernst R. Berndt

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

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