IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v29y2008i5p389-405.html
   My bibliography  Save this article

Keeping it real: anticounterfeiting strategies in the pharmaceutical industry

Author

Listed:
  • Kristina M. Lybecker

    (Department of Economics, The Colorado College, Colorado Springs, CO, USA)

Abstract

Although pharmaceutical counterfeiting incidents can be traced back thousands of years, it has been downplayed and even dismissed by pharmaceutical manufacturers in the past. That has changed. Pharmaceutical firms are newly dedicated to eradicate counterfeits globally and spending more money on anticounterfeiting efforts than ever before. The confluence of three factors seems to have drastically changed the existing paradigm for the pharmaceutical industry: increasing globalization, advancing technology, and the controversies surrounding the WTO Trade-related Aspects of Intellectual Property Rights Agreement and access to medicines. Given that counterfeit pharmaceuticals slip into the supply chain at every link, multinational pharmaceutical firms are searching for global solutions through increased interfirm cooperation along the supply chain. This research presents a theoretical model for characterizing the implications of these interventions on the motivations driving counterfeiters. The interventions are shown to increase the share of real pharmaceuticals and decrease the welfare losses attributable to counterfeiting. In practice, it is too early to evaluate the success of these new measures, but this research reflects on the extent of cooperation both across the supply chain and national boundaries and examines the likely long-run implications of these measures. Copyright © 2008 John Wiley & Sons, Ltd.

Suggested Citation

  • Kristina M. Lybecker, 2008. "Keeping it real: anticounterfeiting strategies in the pharmaceutical industry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(5), pages 389-405.
    • Handle: RePEc:wly:mgtdec:v:29:y:2008:i:5:p:389-405
    DOI: 10.1002/mde.1405
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1002/mde.1405
    File Function: Link to full text; subscription required
    Download Restriction: no
    File URL: https://libkey.io/10.1002/mde.1405?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ganslandt, Mattias & Maskus, Keith E., 2001. "Parallel imports of pharmaceutical products in the European Union," Policy Research Working Paper Series 2630, The World Bank.
    2. repec:hhs:iuiwop:546 is not listed on IDEAS
    3. Jillian Clare Cohen & Kristina M. Lybecker, 2005. "AIDS Policy and Pharmaceutical Patents: Brazil's Strategy to Safeguard Public Health," The World Economy, Wiley Blackwell, vol. 28(2), pages 211-230, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Del Bosco, Barbara & Misani, Nicola, 2011. "Keeping the enemies close: The contribution of corporate social responsibility to reducing crime against the firm," Scandinavian Journal of Management, Elsevier, vol. 27(1), pages 87-98, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ganslandt, Mattias & Maskus, Keith E., 2004. "Parallel imports and the pricing of pharmaceutical products: evidence from the European Union," Journal of Health Economics, Elsevier, vol. 23(5), pages 1035-1057, September.
    2. Richard Friberg, 2003. "Common Currency, Common Market?," CERS-IE WORKING PAPERS 0305, Institute of Economics, Centre for Economic and Regional Studies.
    3. Gene M. Grossman & Edwin L.‐C. Lai, 2008. "Parallel imports and price controls," RAND Journal of Economics, RAND Corporation, vol. 39(2), pages 378-402, June.
    4. Olsen Tricia D. & Sinha Aseema, 2013. "Linkage politics and the persistence of national policy autonomy in emerging powers: patents, profits, and patients in the context of TRIPS compliance," Business and Politics, De Gruyter, vol. 15(3), pages 323-356, October.
    5. Thomas Eimer & Susanne Lütz, 2010. "Developmental states, civil society, and public health: Patent regulation for HIV/AIDS pharmaceuticals in India and Brazil," Regulation & Governance, John Wiley & Sons, vol. 4(2), pages 135-153, June.
    6. Kyle Margaret, 2011. "Strategic Responses to Parallel Trade," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(2), pages 1-34, January.
    7. Steve Thompson, 2009. "Grey Power: An Empirical Investigation of the Impact of Parallel Imports on Market Prices," Journal of Industry, Competition and Trade, Springer, vol. 9(3), pages 219-232, September.
    8. Ganslandt, Mattias & Maskus, Keith E., 2001. "Parallel imports of pharmaceutical products in the European Union," Policy Research Working Paper Series 2630, The World Bank.
    9. Izabela Jelovac & Catalina Bordoy, 2005. "Pricing and Welfare Implications of Parallel Imports in the Pharmaceutical Industry," International Journal of Health Economics and Management, Springer, vol. 5(1), pages 5-21, January.
    10. Li, Changying & Maskus, Keith E., 2006. "The impact of parallel imports on investments in cost-reducing research and development," Journal of International Economics, Elsevier, vol. 68(2), pages 443-455, March.
    11. Bordoy, Catalina & Jelovac, Izabela, 2003. "Pricing and Welfare of Parallel Imports in the Pharmaceutical Industry," Research Memorandum 004, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    12. Volman, Lucas, 2018. "The TRIPS Article 31 Tug of War Developing Country Compulsory Licensing of Pharmaceutical Patents and Developed Country Retaliation," LawArXiv 6cxaj, Center for Open Science.
    13. Keith E. Maskus & Yongmin Chen, 2004. "Vertical Price Control and Parallel Imports: Theory and Evidence," Review of International Economics, Wiley Blackwell, vol. 12(4), pages 551-570, September.
    14. Stähler, Frank & Maskus, Keith, 2013. "Retailers as Agents and the Absence of Parallel Trade," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79737, Verein für Socialpolitik / German Economic Association.
    15. Shadlen, Ken, 2007. "The Politics of Patents and Drugs in Brazil and Mexico: The Industrial Bases of Health Activism," Working Papers 37710, Tufts University, Global Development and Environment Institute.
    16. Wogart, Jan Peter, 2006. "Multiple Interfaces of Big Pharma and the Change of Global Health Governance in the Face of HIV/AIDS," GIGA Working Papers 24, GIGA German Institute of Global and Area Studies.
    17. Paula K Lorgelly, 2018. "The Impact of Brexit on Pharmaceuticals and HTA," PharmacoEconomics - Open, Springer, vol. 2(2), pages 87-91, June.
    18. Valletti, Tommaso M., 2006. "Differential pricing, parallel trade, and the incentive to invest," Journal of International Economics, Elsevier, vol. 70(1), pages 314-324, September.
    19. Schüren Verena, 2013. "What a difference a state makes: pharmaceutical innovation after the TRIPs agreement," Business and Politics, De Gruyter, vol. 15(2), pages 217-243, August.
    20. Shen Guo & Bin Hu & Hai Zhong, 2013. "Impact of parallel trade on pharmaceutical firm’s profits: rise or fall?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(2), pages 345-355, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:mgtdec:v:29:y:2008:i:5:p:389-405. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.