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Related post: positive and significant effect on Trimox Dosage drug price, raising it on average by 12 percent. Table 3 shows the results from estimating equation 1 for additional outcome variables. In columns 1-2, the dependent variable is the total number of products containing molecule j that were sold at time t. We find that the introduction of product patent did not generate any significant effect on the number of products containing that molecule. In contrast, product patents claiming the active ingredient led to a significant decline in the number of products sold. The point estimate is -2.4 and is significant at the 5% level, implying that the patent on the base molecule, indeed, led to the withdrawal of, on average, two generics from the market. Nevertheless, in columns 3-4, we do not find any corresponding significant effect of product patent enforcement (or type of product patent) on utilization as measured by the log of standardized units (total number of doses sold). Interestingly, in columns 5-6, we find that the product patent on the active ingredient led to Trimox Antibiotic a significant Buy Trimox increase in the fraction of total quantity sold by the innovator of almost 40 percent. One possible explanation for why the share sold to the innovator did not increase to 100 percent in all cases could be the existence of an agreement between the innovator and Amoxil Trimox a generic firm such as license deals or joint ventures to produce and market the drug. Our interviews with industry executives reveal that comprehensive information on such deals is not publicly available. Our model predicts differential effects of patent enforcement on the drugs that are under price control. Out of 160 molecules in the CNS category, only nine are under 11 government price controls. However, out of the nine that are under price control, only one molecule was subjected to a product patent implying that, at least within this therapeutic segment, the Trimox 500mg likely effect of price controls on curbing price increases is negligible. IV. Conclusion This paper explores the effects of product patent protection on drug prices and utilization using data on one particular therapeutic segment relating to central nervous system treatments in the Indian pharmaceuticals market. The study highlights the importance of the distinction between different types of product patents and their differential impact on average prices and total utilization of drugs. The analysis finds a statistically significant effect of Generic Trimox a sub-class of product patents. In particular, product patents that were granted on the active ingredient instead of incremental innovations of a drug, led to a significant increase in drug prices, and an increase in the fraction of total quantity sold to the innovator with a corresponding withdrawal of generics from the pharmaceutical market in India. The purpose of this paper is to provoke discussion on Trimox Indications some of the early estimates emerging from preliminary analysis using this data. In forthcoming work we plan to extend the analysis to all therapeutic segments of the Indian pharmaceutical market, and explore in greater detail heterogeneous effects by sub-therapeutic segments, welfare implications of stringent patent protection using demand and supply parameters estimated earlier in the literature, and whether there are any substitution effects between patents and price controls as alternative policy approaches. 12 References Acemoglu, D. and Linn, J. 2004. ?Market Size in Innovation: Theory and Evidence from the Pharmaceutical Industry,? 2004, Quarterly Journal of Economics, Vol. 119, No 3, 1049-1090. Arora, A., Branstetter, L. and Chatterjee, C. 2008. ?Strong Medicine: The Impact of Patent Reform on the Indian Pharmaceutical Industry,? in Iain Cockburn and Matthew Slaughter (eds.), The Location of Biopharmaceutical Activity, NBER and University of Chicago Press. Berndt, E.R., 2002. Pharmaceuticals in U.S. Health Care: determinants of quantity and price. Journal of Economic Perspectives, 16, 45�66. Caves, R.E., Whinston, M.D., Hurwitz, M.A., 1991. ?Patent Expiration, Entry, and Competition in the U.S. Pharmaceutical Industry,? Brookings Papers: Microeconomics 1�23. Chaudhuri, S. 2005.?The WTO and India�s Pharmaceuticals Industry: Patent Protection TRIPS and Developing Countries?, New Delhi, Oxford University Press, 2005. Chaudhuri, S., Goldberg, P. and Jia, P. 2006. ?Estimating the Effects of Global Patent Protection in Pharmaceuticals: A Case Study of Quinolones in India,?American Economic Review Cockburn, I. and Lanjouw, J. 2001. ?New Pills for Poor People?: Empirical Evidence after GATT,? World Development, 29, 265-289 Duggan, M. and Scott Morton, F. 2006. ?The Distortionary Effects of Government Procurement: Evidence for Medicaid Prescription Drug Purchasing.? Quarterly Journal of Economics, 1-31. Duggan, M. and Scott Morton, F. 2010. ?The Impact of Medicare Part D on Pharmaceutical Prices Trimox 500 and Trimox 500 Mg Utilization.? American Economic Review, March. Ellison, G., Ellison, S., 2007. ?Strategic Entry Deterrence and the Behavior Order Trimox of Pharmaceutical Incumbents Prior to Patent Expiration,? MIT Working Paper. Ellison, S., Cockburn, I., Grilliches, Z. and Hausman, J. 1997. ?Characteristics of Demand for Pharmaceutical Products: An Examination of Four Cephalosporins?, The RAND Journal of Economics, Vol. 28, No. 3, 426-446. Evans, N.2007. ?India's New Patent Regime and its Impact on the Global Pharmaceutical Industry,? Pharmaceutical Law Insight, September. 13 Frank, R.G., Salkever, D.S., 1997. ?Generic Entry and the Pricing of Pharmaceuticals,? Journal of Economics and Management Strategy, 6, 75�90. Fink, C. 2001. ?Patent Protection, Transnational Corporations, and Market Structure: A Simulation Study of the Indian Pharmaceutical industry,? Journal of Industry, Competition and Trade, 1:1, 101-121. Fink, C. and Maskus, K. 2000. Intellectual Property and Trimox Online Development: Lessons from Recent Economic Research (eds.), Washington: Buy Trimox Online the World Bank. Government of India, 2005, ?Manual of Trimox Side Effects Patent Practice and Procedure,? Patent Office Government of India, 2005, ?Annual Report,? Controller General of Patents, Designs & Trade Marks. Government of India, 2010, ?Annual Report,? National Pharmaceutical Pricing Authority, Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers Grabowski, H., Vernon, J., 1996. ?Longer Patents for Increased Generic Competition in the U.S. the Waxman�Hatch Act after One Decade,? PharmacoEconomics, 10, 1996, 110�123.
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