Related Experiment Video
Updated: Dec 8, 2025

Drug Repurposing Hypothesis Generation Using the "RE:fine Drugs" System
Published on: December 11, 2016
Unpacking the effects of adverse regulatory events: Evidence from pharmaceutical relabeling
Matthew J Higgins1, Xin Yan2, Chirantan Chatterjee3,4
1University of Utah, NBER & Max Planck Institute for Innovation and Competition, Cambridge, MA, USA.
Abstract:
We provide causal evidence that regulation induced product shocks significantly impact aggregate demand and firm performance in pharmaceutical markets. Event study results suggest an average loss between $569 million and $882 million. Affected products lose, on average, $186 million over their remaining effective patent life. This leaves a loss of between $383 million and $696 million attributable to declines in future innovation. Our findings complement research that shows drugs receiving expedited review are more likely to suffer from regulation induced product shocks. Thus, it appears we may be trading off quicker access to drugs today for less innovation tomorrow. Results remain robust to variation across types of relabeling, market sizes, and levels of competition.
More Related Videos
Related Concept Videos
Drug Regulation
FDA Approved Drugs: Changes to Approved Drugs
Pharmacovigilance
This process, termed pharmacovigilance, aims to detect, evaluate, and minimize harmful effects related to medication use. The data collection for pharmacovigilance depends on spontaneous reporting systems, where healthcare professionals or patients voluntarily report suspected ADRs.
In some cases, there...
Drug Control Governance: Regulatory Bodies and Their Impact
Drug Nomenclature
Pharmaceutical Alternatives: Polymorphic Form-Related and Particle Size-Related Therapeutic Nonequivalence

