Market Analysis on Generic Medicine | Abstract

Asian Journal of Pharmaceutical Technology and Innovation (ajpti)

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Market Analysis on Generic Medicine


Frank Orlowski

A large number of studies have focussed on the determinants
of the entry of generics in the pharmaceuticals
market. Most of them focus on the United States market.
Much less evidence is found about heavily regulated pharmaceutical
markets, such as the Portuguese market. This
study uses data from Portugal, for the period 2000–2015.
Based on a sample of 50 reimbursable outpatient drugs,
that face potential entry of generics, two econometric
models were estimated aiming to identify the determinants
of entry and penetration of generics. The active
substances included were chosen among those that represent
the highest financial burden to the National Health
System or are the most sold (in volume). To each of those
active substances, the most sold pharmaceutical form, dosage,
and package size was chosen. Our results suggest that
market size is the main determinant of the generics entry.
Concerning market penetration, our results show that it
is determined by the number of marketed generics, as well
as by price differences between brands and generics

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