Healthy Skepticism Library item: 13306

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: Journal Article

Richard O, Van Horn L.
Persistence in prescriptions of branded drugs
International Journal of Industrial Organization 2003 Dec 19; 22:(4):523-540
http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6V8P-4B8BST2-1&_user=10&_coverDate=04%2F30%2F2004&_rdoc=5&_fmt=summary&_orig=browse&_srch=doc-info(%23toc%235876%232004%23999779995%23490895%23FLA%23display%23Volume)&_cdi=5876&_sort=d&_docanchor=&_ct=9&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=f83412caf487e79e0bebbdd221ef44f4

Abstract:

The American Medical Association and the Pharmaceutical Research and Manufacturers of America have developed new standards to curb the influence sales representatives may have on physicians’ drug choices. Yet the literature fails to clarify the extent to which shares of prescriptions for branded drugs are driven by advertising to physicians or by usage persistence in choices. Using unique aggregate data on major Therapeutic Classes (i.e. Statins, SSRIs, COX2s), we show that a majority of prescriptions are best characterized as automatic renewals for current users. Choice probabilities across all other prescriptions seem driven by brand attributes and promotion to physicians.

Keywords:
Market structure; Advertising; Monte Carlo; Pharmaceutical drugs