The Impact of the Entry of Biosimilars: Evidence from Europe
Morton, Fiona M. Scott, Ariel Dora Stern, and Scott Stern. "The impact of the entry of biosimilars: evidence from Europe." Review of Industrial Organization 53, no. 1 (2018): 173-210.
71 Pages Posted: 24 Jul 2016 Last revised: 4 May 2019
Date Written: July 21, 2016
Biologics represent a substantial and growing share of the U.S. drug market. Traditional “small molecule” generics quickly erode the price and share of the branded product upon entry, however only a few biosimilars have been approved in the US since 2015, thereby largely preserving biologics from competition. We analyze European markets, which have had biosimilar competition since 2006. Using our own survey, we analyze how market features and public policies predict biosimilar entry, price, and penetration, finding significant heterogeneity across countries and products. Effective buyer institutions are associated with increased biosimilar penetration. Our estimates can inform ongoing policy discussions.
Keywords: Biosimilars; Biologics; Pharmaceutical Competition; Health Care Spending; Innovation
JEL Classification: I11, I18
Suggested Citation: Suggested Citation