Brand drug companies impeding generic drug company access to product samples: Estimated prevalence and impact on drug costs

2021 ◽  
pp. 174113432110351
Author(s):  
Paul Grootendorst
Keyword(s):  
Drug Development ◽  
Generic Drug ◽  
Drug Market ◽  
Drug Costs ◽  
Development Projects ◽  
Drug Companies ◽  
Development Costs ◽  
The Us ◽  
Additional Costs ◽  
Using Data

Some brand drug companies have stymied attempts by generic drug companies to obtain samples of brand drugs needed to develop and gain regulatory approval for their generic products. This conduct, which has been reported in both the US and Canada, raises drug costs to drug plans and other payors and can lessen competition. The literature to date contains little empirical evidence on the prevalence of this conduct, the attendant effects on generic drug market launches and costs incurred by drug payors. This paper addresses these questions for Canada, using data on the drug development projects undertaken by the members of the Canadian Generic Pharmaceutical Association over the period 2015–2019. I found that about 16% of generic drug development projects were delayed due to originator firm efforts to impede access to samples of their drugs. The median generic drug launch delay (among affected drugs) attributable to the challenged conduct was 6 months. The additional costs to drug payors from the resulting delays in generic drug launches over the analysis period was in the order of $284 million, or $57 million annually. This study did not explore the additional generic drug development costs attributable to the challenged conduct.

AstraZeneca, Prilosec, and Nexium: Marketing Challenges in the Launch of a Second-Generation Drug

2017 ◽  
pp. 1-20
Author(s):  
James G. Conley ◽  
Robert C. Wolcott ◽  
Eric Wong
Keyword(s):  
Generic Drug ◽  
Price Competition ◽  
Drug Market ◽  
Market Segments ◽  
Pharmaceutical Firms ◽  
Direct To Consumer ◽  
The Us ◽  
Marketing Variables ◽  
Direct To Consumer Advertising ◽  
First Mover

Tom McKillop, CEO of AstraZeneca, faced the classic quandary of large pharmaceutical firms. The firm's patent for Prilosec (active ingredient omeprazole) was expiring. Severe cost-based competition from generic drug manufacturers was inevitable. Patent expirations were nothing new for the US$15.8 billion in revenues drug firm, but Prilosec was the firm's most successful drug franchise, with global sales of US$6.2 billion. How could the company innovate its way around the generic cost-based competition and avoid the drop in revenues associated with generic drug market entry? AstraZeneca had other follow-on drugs in the pipeline—namely Nexium, an improvement on the original Prilosec molecule. Additionally, the company had the opportunity to introduce its own version of generic omeprazole, hence becoming the first mover in the generic segment, and/or introduce an OTC version of omeprazole that might tap into other markets. Ideally, AstraZeneca would like to move brand-loyal Prilosec customers to Nexium. In this market, direct-to-consumer advertising has remarkable efficacy. Classical marketing challenges of pricing and promotion need to be resolved for the Nexium launch as well as possible product and place challenges for the generic or OTC opportunity. Which combination of marketing options will allow the firm to best sustain the value of the original omeprazole innovation?The central objective of the case is to teach students how marketing variables can be used by first movers with diverse product portfolios to fend off severe price competition. These variables include pricing, promotion, product, and place (distribution) options as considered in the context of branded, generic, and OTC pharmaceutical market segments.

COSTS OF UNDERGROUND SERVICE INSTALLATIONS IN RELATION TO SOIL QUALITY AND SOIL SURVEY INTERPRETATIONS

1984 ◽  
Vol 64 (3) ◽  
pp. 463-466
Author(s):  
D. R. CRESSMAN ◽  
J. DUMANSKI
Keyword(s):  
Development Project ◽  
Soil Survey ◽  
Professional Judgment ◽  
Development Projects ◽  
Full Time ◽  
Time Cost ◽  
Development Costs ◽  
Total Investment ◽  
Additional Costs ◽  
Municipal Development

This study examines the development costs of underground service installation in relation to various land factor constraints. Records from municipal development projects were found to be inadequate for apportioning development costs. Professional judgment from full-time cost estimators was found to be more useful. Although development costs on marginal agricultural lands are somewhat higher than on good quality lands, these additional costs are minimal when compared to the total investment in a development project. Key words: Soil interpretations, capability, land preservation, development costs

EXPRESS: Commercial Success through Commercials? Advertising and Pay TV Operators

2021 ◽  
pp. 002224372110281
Author(s):  
Joonhyuk Yang ◽  
Jung Youn Lee ◽  
Pradeep K. Chintagunta
Keyword(s):  
Television Advertising ◽  
Service Market ◽  
Unit Costs ◽  
Cost Efficiencies ◽  
Pay Television ◽  
National Advertising ◽  
The Us ◽  
Television Service ◽  
Asymmetric Cost ◽  
Using Data

The US pay television service market had been dominated by cable operators until the nationwide entry of satellite operators in the early 1990s. The latter have been consistently growing their footprints since. This study documents the role of television advertising to explain the success. Using data on US households’ subscription choices and operators’ advertising decisions, the authors document both demand- and supply-side conditions conducive to the growth of the satellite operators. First, the authors find consumers in this market were sensitive to advertising, and especially so to that of the satellite operators (ad-elasticities of about .05-.06 for satellite operators vs. .02 for cable operators). The authors employ a border strategy to demonstrate advertising-elastic demand and discuss its robustness to potential threats to identification. Second, the authors provide suggestive evidence that a form of asymmetric cost efficiencies in television advertising benefited the entrants more than the incumbents. Specifically, the unit costs of local advertising tend to be higher than of national advertising, which likely allowed the satellite operators to better leverage their national presence with (cheaper) national advertising. Overall, this study highlights the interaction between advertising efficiencies and the scale of entry in explaining the competition between market incumbents and entrants.

scholarly journals Measuring Historical Urban Neighborhood Sustainability: America’s Grand Avenues

2021 ◽  
Vol 13 (3) ◽  
pp. 1358
Author(s):  
Michael R. Greenberg
Keyword(s):  
New York ◽  
New York City ◽  
Kansas City ◽  
White Supremacy ◽  
Urban Neighborhood ◽  
Industrial Cities ◽  
The Us ◽  
Education Medical ◽  
Using Data ◽  
Us Cities

From 1850 through approximately 1920, wealthy entrepreneurs and elected officials created “grand avenues” lined by mansions in New York City, Chicago, Detroit, and other developing US cities. This paper examines the birthplaces of grand avenues to determine whether they have remained sustainable as magnets for healthy and wealthy people. Using data from the US EPA’s EJSCREEN system and the CDC’s 500 cities study across 11 cities, the research finds that almost every place where a grand avenue began has healthier and wealthier people than their host cities. Ward Parkway in Kansas City and New York’s Fifth Avenue have continued to be grand. Massachusetts Avenue in Washington, D.C., Richmond’s Monument Avenue, St. Charles Avenue in New Orleans, and Los Angeles’s Wilshire Boulevard are national and regional symbols of political power, culture and entertainment, leading to sustainable urban grand avenues, albeit several are challenged by their identification with white supremacy. Among Midwest industrial cities, Chicago’s Prairie Avenue birthplace has been the most successful, whereas the grand avenues of St. Louis, Cleveland, Detroit, and Buffalo have struggled, trying to use higher education, medical care, and entertainment to try to rebirth their once pre-eminent roles in their cities.

scholarly journals A viability criterion for computer system development projects

1984 ◽  
Vol 15 (3) ◽  
pp. 144-149
Author(s):  
J. Mende
Keyword(s):  
Computer System ◽  
Cost Of Capital ◽  
System Development ◽  
Development Project ◽  
Development Projects ◽  
Organizational Growth ◽  
Net Worth ◽  
Development Costs ◽  
Processing Cost ◽  
Informational Value

A manager facing the decision whether to proceed with a proposed computer system development project needs to determine whether its benefits are worth more than its costs. This can be done by applying a simple mathematical formula to calculate the project's 'net worth', as the sum of the annual benefits obtainable during the system's life span, less its development costs. The formula recognizes that a system's annual benefit, comprising enhanced informational value plus reduction In data processing cost, will change as a result of obsolescence, cost of capital, organizational growth and learning.

Absence of the weekend effect and industry-style portfolios

2019 ◽  
Vol 12 (4) ◽  
pp. 463-475
Author(s):  
Selma Izadi ◽  
Abdullah Noman
Keyword(s):  
New York ◽  
Stock Market ◽  
Structural Breaks ◽  
Stock Exchange ◽  
Structural Break ◽  
Weekend Effect ◽  
Content Type ◽  
Market Portfolio ◽  
The Us ◽  
Using Data

Purpose The existence of the weekend effect has been reported from the 1950s to 1970s in the US stock markets. Recently, Robins and Smith (2016, Critical Finance Review, 5: 417-424) have argued that the weekend effect has disappeared after 1975. Using data on the market portfolio, they document existence of structural break before 1975 and absence of any weekend effects after that date. The purpose of this study is to contribute some new empirical evidences on the weekend effect for the industry-style portfolios in the US stock market using data over 90 years. Design/methodology/approach The authors re-examine persistence or reversal of the weekend effect in the industry portfolios consisting of The New York Stock Exchange (NYSE), The American Stock Exchange (AMEX) and The National Association of Securities Dealers Automated Quotations exchange (NASDAQ) stocks using daily returns from 1926 to 2017. Our results confirm varying dates for structural breaks across industrial portfolios. Findings As for the existence of weekend effects, the authors get mixed results for different portfolios. However, the overall findings provide broad support for the absence of weekend effects in most of the industrial portfolios as reported in Robins and Smith (2016). In addition, structural breaks for other weekdays and days of the week effects for other days have also been documented in the paper. Originality/value As far as the authors are aware, this paper is the first research that analyzes weekend effect for the industry-style portfolios in the US stock market using data over 90 years.

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