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Effects of Horizontal Mergers on Prices of Generic Drugs

Author

Listed:
  • Antonio J. Trujillo

    (Bloomberg School of Public Health, Johns Hopkins University, Baltimore, MD, USA)

  • Mariana Socal

    (Bloomberg School of Public Health, Johns Hopkins University, Baltimore, MD, USA)

  • Gerard Anderson

    (Bloomberg School of Public Health, Johns Hopkins University, Baltimore, MD, USA)

Abstract

This paper quantifies the impact of horizontal mergers on the prices of drugs. We study all mergers between two publicly traded pharmaceutical companies working in the US between 2010 and 2015 and their effect on their drugs prices. Using a differences-in-differences approach, we estimate that drugs marketed by the merging firms experience an AWP increase of about between 8% and 15% during the five years following the merger. These price increases are present even in markets with more than five competitors.

Suggested Citation

  • Antonio J. Trujillo & Mariana Socal & Gerard Anderson, 2025. "Effects of Horizontal Mergers on Prices of Generic Drugs," Journal of Economic Analysis, Anser Press, vol. 4(2), pages 54-72, June.
    • Handle: RePEc:bba:j00001:v:4:y:2025:i:2:p:54-72:d:409
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