Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/208076
Authors: 
Gaessler, Fabian
Wagner, Stefan
Year of Publication: 
2019
Series/Report no.: 
Discussion Paper 176
Abstract: 
Pharmaceutical firms typically enjoy market exclusivity for new drugs from concurrent protection of the underlying invention (through patents) and the clinical trials data submitted for market approval (through data exclusivity). Patent invalidation during drug development renders data exclusivity the sole source of protection and shifts the period of market exclusivity at the project level. In instrumental variables regressions we quantify the effect of a one-year reduction in expected market exclusivity on the likelihood of drug commercialization. The effect is largely driven by patent invalidations early in the drug development process and by the responses of large originators. We hereby provide first estimates of the responsiveness of R&D investments to market exclusivity expectations.
Subjects: 
patents
drugs
data exclusivity
clinical trials
JEL: 
K41
L24
L65
O31
O32
O34
Document Type: 
Working Paper

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