Patent Expiry and Pharmaceutical Market Opportunities at the Nexus of Pricing and Innovation Policy

48 Pages Posted: 5 Oct 2012  

Date Written: October 3, 2012

Abstract

This paper explores the academic literature and empirical evidence associated with the strategic and tactical opportunities available to pharmaceutical firms confronted with the loss of patent protection on their branded drug. The marketing dimensions of product innovation, pricing and brand equity options are considered together with exclusivity options available through government regulators such as the US Food and Drug Administration. These options are then considered in the context of the legal monopolies available to innovators through the policy lenses of intellectual property. This paper further explores the maxim that sustainable competitive advantage for pharmaceutical innovators is realized at the nexus of marketing choices, intellectual property and regulatory regimes. Separate examples in gastro intestinal and neurological medications will be used to explore how the various options might be integrated together and used in a time sequenced, longitudinal manner to extend the market advantages and earnings levels of the original pharmaceutical compound innovation. Areas of potentially fruitful future academic research are described.

Suggested Citation

Jain, Dipak C. and Conley, James, Patent Expiry and Pharmaceutical Market Opportunities at the Nexus of Pricing and Innovation Policy (October 3, 2012). INSEAD Working Paper No. 2012/89/MKT. Available at SSRN: https://ssrn.com/abstract=2156237 or http://dx.doi.org/10.2139/ssrn.2156237

Dipak C. Jain (Contact Author)

Marketing, INSEAD ( email )

Boulevard de Constance
Fontainebleau, 77305
France

James Conley

Kellogg Center for Research in Technology & Innovation, Northwestern University ( email )

2001 Sheridan Road
Evanston, IL 60208
United States
+18474914814 (Phone)

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