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The global entry of new pharmaceuticals: A joint investigation of launch window and price

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  • Verniers, Isabel
  • Stremersch, Stefan
  • Croux, Christophe

Abstract

Research on the launch of new products in the international realm is scarce. The present paper is the first to document how launch window (the difference, in months, between the first worldwide launch and the subsequent launch in a specific country) and launch price are interrelated and how regulation influences both the launch window and launch price. The research context is the global (50 countries worldwide) launch of 58 new ethical drugs across 29 therapeutic areas. We show that the fastest launch occurs when the launch price is moderately high and the highest launch price occurs at a launch window of 85months. We find that the health regulator acts strategically in that the extent to which it delays the launch of a new drug increases with the price of the new drug. We also find that overall, regulation increases the launch window, except for patent protection. Surprisingly, regulation does not directly impact launch price. The descriptive information on average launch window and launch price and the interconnection between launch window and launch price allow managers in ethical drug companies to make more informed decisions about international market entry. This study also provides public policy analysts with more quantitative evidence on launch window and launch price across a broad sample of countries and drug therapeutic categories.

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  • Verniers, Isabel & Stremersch, Stefan & Croux, Christophe, 2011. "The global entry of new pharmaceuticals: A joint investigation of launch window and price," International Journal of Research in Marketing, Elsevier, vol. 28(4), pages 295-308.
    • Handle: RePEc:eee:ijrema:v:28:y:2011:i:4:p:295-308
    DOI: 10.1016/j.ijresmar.2011.05.008
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    Cited by:

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    2. Nikolopoulos, Konstantinos & Buxton, Samantha & Khammash, Marwan & Stern, Philip, 2016. "Forecasting branded and generic pharmaceuticals," International Journal of Forecasting, Elsevier, vol. 32(2), pages 344-357.
    3. Nicolas Houy & Izabela Jelovac, 2019. "Comparing approval procedures for new drugs," The World Economy, Wiley Blackwell, vol. 42(5), pages 1598-1619, May.
    4. Birg, Laura, 2019. "Price Caps versus Reimbursement Limits: Pharmaceutical Regulation under Market Integration through Parallel Trade," University of Göttingen Working Papers in Economics 253, University of Goettingen, Department of Economics, revised 2019.
    5. Sood, Ashish & Kappe, Eelco & Stremersch, Stefan, 2014. "The commercial contribution of clinical studies for pharmaceutical drugs," International Journal of Research in Marketing, Elsevier, vol. 31(1), pages 65-77.
    6. Stefan Stremersch & Jorge Gonzalez & Albert Valenti & Julian Villanueva, 2023. "The value of context-specific studies for marketing," Journal of the Academy of Marketing Science, Springer, vol. 51(1), pages 50-65, January.
    7. Verdiana Giannetti & Gaia Rubera, 2020. "Innovation for and from emerging countries: a closer look at the antecedents of trickle-down and reverse innovation," Journal of the Academy of Marketing Science, Springer, vol. 48(5), pages 987-1008, September.
    8. S. Buxton & Kostas Nikolopoulos & M. Khammash & P. Stern, 2015. "Modelling and Forecasting Branded and Generic Pharmaceutical Life Cycles: Assessment of the Number of Dispensed Units," Working Papers 15004, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
    9. Fabian Grünwald & Tom Stargardt, 2024. "Harmonizing regulatory market approval of products with high safety requirements: Evidence from the European pharmaceutical market," Health Economics, John Wiley & Sons, Ltd., vol. 33(7), pages 1546-1564, July.
    10. Birg, Laura, 2016. "External reference pricing and the choice of country baskets and pricing rules," University of Göttingen Working Papers in Economics 279, University of Goettingen, Department of Economics.

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