Determinants of drug launch delay in pre-TRIPS India: A survival analysis approach

Saradindu Bhaduri () and Thomas Brenner ()
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Saradindu Bhaduri: Centre for Studies in Science Policy, Jawaharlal Nehru University New Delhi

No 2011-05, Working Papers on Innovation and Space from Philipps University Marburg, Department of Geography

Abstract: The dynamics of drug launch has been an under-researched area. Most of the studies in this field focus on developed countries, quite uniform in terms of disease profile and regulatory framework, and analyse whether stringency in regulation influences launch delay. Developing countries, in contrast, have diverse disease profiles and weaker forms of regulation. A limited set of studies, undertaken in recent years, on the diffusion of new drugs in developing countries indeed conjectures importance of such factors in shaping drug launch dynamics. We investigate the delay of new drug launch in India for drugs launched in the German market during 1990-2004, when, due to weak IPR, not only the innovators but also the domestic firms could launch new drug molecules in the country, making drug launch dynamics interesting to explore. The paper finds that global commercial success of a new drug, market share, first mover advantage, and the threat of imposition of strong IPR system shortens delay. Innovativeness of a new drug, surprisingly, does not have much significant impact on delay.

Keywords: Drug launch delay; Germany; India; survival analysis (search for similar items in EconPapers)
JEL-codes: C14 L20 L65 O10 O30 O33 O34 O53 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2011-12
New Economics Papers: this item is included in nep-hea
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