Entry in theADHDdrugs market: Welfare impact of generics and me‐too's
研究了ADHD药物市场中新药进入如何通过降低替代品价格和提供新给药方式带来福利改善，对评估药品审批政策有参考价值。
Recent decades have seen a growth in treatments for attention deficit hyperactivity disorder ( ADHD ) including many branded and generic drugs. In the early 2000's, new drug entry dramatically altered market shares. We estimate a demand system for ADHD drugs and assess the welfare impact of new drugs. We find that entry induced large welfare gains by reducing prices of substitute drugs, and by providing alternative delivery mechanisms for existing molecules. Our results suggest that the success of follow‐on patented drugs may come from unanticipated innovations like delivery mechanisms, a factor ignored by proposals to retard new follow‐on drug approvals.