Common ownership in the US pharmaceutical industry: A network analysis

Albert Banal-Estañol (), Melissa Newham and Jo Seldeslachts
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Albert Banal-Estañol: https://www.upf.edu/web/econ/faculty/-/asset_publisher/6aWmmXf28uXT/persona/id/3419756

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: We investigate patterns in common ownership networks between firms that are active in the US pharmaceutical industry for the period 2004-2014. Our main findings are that "brand firms" -i.e. firms that have R&D capabilities and launch new drugs- exhibit relatively dense common ownership networks with each other that further increase significantly in density over time, whereas the network of "generic firms" -i.e. firms that primarily specialize in developing and launching generic drugs- is much sparser and stays that way over the span of our sample. Finally, when considering the common ownership links between brands firms, on the one hand, and generic firms, on the other, we find that brand firms have become more connected to generic firms over time. We discuss the potential antitrust implications of these findings.

Keywords: common ownership networks; pharmaceutical companies; competition; innovation (search for similar items in EconPapers)
JEL-codes: G23 K21 L11 L41 L65 (search for similar items in EconPapers)
Date: 2020-10
New Economics Papers: this item is included in nep-ind and nep-law
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Common Ownership in the U.S. Pharmaceutical Industry: A Network Analysis (2021)
Working Paper: Common Ownership in the US Pharmaceutical Industry: A Network Analysis (2020)
Working Paper: Common Ownership in the US Pharmaceutical Industry: A Network Analysis (2020)
Working Paper: Common ownership in the US pharmaceutical industry: A network analysis (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:upf:upfgen:1752

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