Related Experiment Video
Updated: Sep 23, 2025
07:00
Failure of Cleaning Verification in Pharmaceutical Industry Due to Uncleanliness of Stainless Steel Surface
Published on: August 11, 2017
8.3K
Challenges with Defining Pharmaceutical Markets and Potential Remedies to Screen for Industry Consolidation
Robin Feldman1, Brent D Fulton2, Jamie R Godwin3
1University of California, Hastings College of the Law.
Journal of Health Politics, Policy and Law
|May 16, 2022
Summary
Pharmaceutical merger and acquisition activity consistently reduces innovation and harms public health. Current market definitions and regulatory tools like the Herfindahl-Hirschman Index (HHI) are inadequate for evaluating these complex consolidations.
Area of Science:
- Health Economics
- Pharmaceutical Policy
- Antitrust Law
Background:
- The pharmaceutical industry has experienced significant merger and acquisition (M&A) activity, indicating a third wave of consolidation.
- This consolidation trend raises concerns about its impact on market competition and innovation.
Purpose of the Study:
- To examine the effects of pharmaceutical M&A on competition and innovation.
- To explore how industry-specific attributes complicate M&A regulation.
- To identify potential improvements in evaluating pharmaceutical mergers.
Main Methods:
- Comprehensive review of 168 economic, legal, medical, industry, and government sources.
- Analysis of market definition challenges in the pharmaceutical sector.
- Evaluation of the limitations of the Herfindahl-Hirschman Index (HHI) in this context.
Main Results:
- Pharmaceutical consolidation consistently reduces innovation and negatively impacts the public good.
- Limited consumer choice and unique market structures complicate standard market definition methods.
- Factors like volume bargaining and common ownership by asset managers distort M&A evaluations.
- The Herfindahl-Hirschman Index (HHI) may rely on flawed market definitions and fail to predict future market share implications.
Conclusions:
- Proposes methods to enhance pharmaceutical market definition for M&A review.
- Suggests quantitative adjustments to the HHI to address common ownership issues.
- Identifies key areas for future research in pharmaceutical M&A regulation.
Related Concept Videos
01:26Drug Discovery: Overview
8.9K
Drug discovery is a multifaceted process involving extensive screening, testing, and optimization of lead compounds to identify potential new drugs for therapeutic use. It combines several approaches, including screening large numbers of natural products, chemical modification of known active molecules, identification of new drug targets, and rational design based on biological mechanisms and drug-receptor structure. These approaches are carried out in both academic research laboratories and...
8.9K
01:03Drug Control Governance: Regulatory Bodies and Their Impact
261
Drug control governance involves the oversight and regulation of pharmaceuticals to ensure their safety and efficacy while preventing illegal drug use and trafficking. Regulatory bodies, including the US Food and Drug Administration (FDA) and the European Union's European Medicines Agency (EMA), play a central role in this process. These agencies evaluate the safety and efficacy of drugs before they can be marketed. They fund clinical trials and assess the benefits and risks associated with...
261
01:28Factors Influencing Drug Absorption: Pharmaceutical Parameters
203
Solid dosage forms such as tablets and capsules undergo rigorous manufacturing processes to ensure stability and effectiveness. Their dissolution and absorption properties are influenced significantly by the choice of excipients (inactive ingredients that serve various roles in the formulation), and the methodology applied during production. The manufacturing parameters, such as compression force and granulation techniques, significantly affect dissolution rates. Elevated compression forces...
203
01:20Factors Affecting Dissolution: Drug Permeability, Stability and Stereochemistry
271
Orally administered drugs primarily enter the systemic circulation via passive diffusion through the intestinal membranes. The drug's absorption is influenced by drug stability in the gastrointestinal GI tract, membrane permeability, the surface area available for absorption, luminal drug concentration, and residence time in the lumen. Drug permeability can be enhanced by adjusting the lipophilicity, polarity, or molecular size of the drug, promoting its passive transport across intestinal...
271
01:23Types of Biopharmaceutical Studies: Controlled and Non-Controlled Approaches
185
Biopharmaceutical studies constitute a vital field aiming to enhance drug delivery methods and refine therapeutic approaches, drawing upon diverse interdisciplinary knowledge. In research methodologies, the choice between controlled and non-controlled studies significantly influences the study's reliability and accuracy.
Non-controlled studies, commonly employed for initial exploration, lack a control group, rendering them susceptible to biases and external influences. In contrast,...
Non-controlled studies, commonly employed for initial exploration, lack a control group, rendering them susceptible to biases and external influences. In contrast,...
185
01:19Pharmacovigilance
1.0K
Post-marketing surveillance is a critical component of pharmaceutical regulation, often uncovering unanticipated adverse drug reactions (ADRs) once a drug is widely used over an extended period.
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...
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...
1.0K