The nature and extent of competition between different therapies for a given medical condition often is a critical and controversial issue in both antitrust cases and in general strategic analysis in the pharmaceutical industry. The market for pulmonary arterial hypertension (“PAH”) therapies provides an interesting case study for analyzing these issues. An event study analyzing how the stock prices of PAH therapy providers respond to competitive developments sheds light on the nature of competition among different types of therapies. The results support the view that not all drugs for a given medical condition should necessarily be included in the same relevant market. In particular, the strength of competition between any two drugs can vary greatly depending on factors such as the mode of delivery, the mechanism of action, convenience/ease of use, and other characteristics.
- Relevant Markets,
- Pharmaceutical Industry
Available at: http://works.bepress.com/kevin_green/2/