Some empirical evidence on post-patent barriers to entry in the Canadian pharmaceutical industry.

In this paper we present some empirical evidence and comment upon the significance of being a pioneering drug in the Canadian pharmaceutical market. We analyse prices and market shares of 21 first entrant drugs in the Canadian pharmaceutical industry. The Canadian experience described in this paper is, we believe, of considerable relevance to U.S. policy makers. Canadian public policy, both federal and provincial, has already created the competitive environment that some U.S. policy makers seek. This paper documents the effect of such a system on the price of drugs and the market shares, hence the revenues, of patent-holders.