TY  - JOUR
AU  - Trusheim,Mark
AU  - Aitken,Murray L.
AU  - Berndt,Ernst R.
TI  - Characterizing Markets for Biopharmaceutical Innovations:  Do Biologics Differ from Small Molecules?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 16014
PY  - 2010
Y2  - May 2010
UR  - http://www.nber.org/papers/w16014
L1  - http://www.nber.org/papers/w16014.pdf
N1  - Author contact info:
Mark Trusheim
Sloan School of Management
MIT
50 Memorial Drive
Cambridge, MA 02142
Tel: 617/253-2659
E-Mail: trusheim@mit.edu

Murray L. Aitken
Senior Vice President
Healthcare Insight
IMS Health
901 Main Avenue, Suite 612
Norwalk, CT 06851
Tel: 203-845-5201
Fax: 203-845-5314
E-Mail: maitken@imshealth.com

Ernst R. Berndt
MIT Sloan School of Management
100 Main Street, E62-518
Cambridge, MA 02142
Tel: 617/253-2665
Fax: 617-227-0880
E-Mail: eberndt@mit.edu
AB  - Much has been written about the seemingly less formal, more agile biotechnology industry and its extensive interactions with academia and startups, as well as its distinct scientific, manufacturing and regulatory profile.  Employing a data base encompassing all 96 biologics and 212 small molecules newly launched in the U.S. between 1998Q1 and 2008Q4, we compare their downstream clinical and commercial characteristics -- therapeutic class concentration, launch delays following approval, Orphan Drug and priority review status, supplemental indications, black box warning and safety record, and pricing and revenue growth during the product life cycle.  We conclude that the market dynamics of biologics differ substantially from those of small molecules, although therapeutic class composition plays a major role.
ER  -