Seminarios

Presenta: Aldo González (Profesor Asociado, Departamento de Economía de la Universidad de Chile)

Título: “The competitive impact of bioequivalence in the Chilean pharmaceutical market” 

Lugar y hora: 11 de septiembre, 12:30 hrs. Sala P-301, Edificio Placa (Diagonal Paraguay 257)

Coautor: Roberto Alvarez

Abstract: We measure the impact of the bioequivalence policy implemented in Chile between 2008 and 2014 on prices and quantities of different types of drugs sold in the market. Using a difference in difference approach, we found a reduction on average prices by around 8% due to the bioequivalence in original and branded medicines. We do not detect significant price variations in pure generic medicines, which is the category where bioequivalent drugs belongs to. On quantities, the bioequivalence policy induced a growth of about 40% of units sold in the market, at the aggregate level. This significant market expansion is exclusively explained by pure generics, which experienced an approximately 70% of increase. By contrast, quantities of original and branded generic drugs did not show any significant statistical variation as a reaction to bioequivalence.