Determinants of generic entry in the regulated Taiwanese prescription drug market

ObjectivesThis paper investigates the determinants of generic entry in the regulated Taiwanese prescription drug market, where physicians both prescribe and dispense drugs.MethodsUsing a sample of 29 ingredients and a population claim data set from 1997–2007, we employ the negative binomial regression to empirically examine the determinants of generic entry in Taiwan.ResultsThis study finds that the lagged number of competitors, market size, and market share of large-scale medical providers affect generic entry.ConclusionsThe negative effect of large buyers on generic entry implies that rent-seeking behavior appears to create a barrier for generic manufacturers to enter into the Taiwanese prescription drug market.