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

See all articles by Fiona M. Scott Morton

Fiona M. Scott Morton

Yale School of Management; National Bureau of Economic Research (NBER)

Ariel Dora Stern

Harvard Business School

Scott Stern

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

Date Written: July 21, 2016

Abstract

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

Scott Morton, Fiona M. and Stern, Ariel Dora and Stern, Scott, The Impact of the Entry of Biosimilars: Evidence from Europe (July 21, 2016). 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., Available at SSRN: https://ssrn.com/abstract=2812938 or http://dx.doi.org/10.2139/ssrn.2812938

Fiona M. Scott Morton

Yale School of Management ( email )

New Haven, CT 06520
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Ariel Dora Stern (Contact Author)

Harvard Business School ( email )

Morgan Hall 433
Harvard Business School
Boston, MA MASSACHUSETTS 02163
United States
6174952332 (Phone)

HOME PAGE: http://www.hbs.edu/astern

Scott Stern

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

Cambridge, MA 02142
United States
617-253-3053 (Phone)
617-253-2660 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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