| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w17528 |
| 来源ID | Working Paper 17528 |
| The Effect of FDA Advisories on Branded Pharmaceutical Firms' Valuations and Promotion Efforts | |
| Rena M. Conti; Haiden A. Huskamp; Ernst R. Berndt | |
| 发表日期 | 2011-10-20 |
| 出版年 | 2011 |
| 语种 | 英语 |
| 摘要 | The US Food and Drug Administration (FDA) expends considerable efforts in regulating medications approved for use. Yet the impact of medication labeling changes on brand pharmaceutical products, and whether and what firms do to respond to increased information regarding the safety and efficacy of a drug, have not be characterized. We propose a behavioral framework for examining the effects of FDA advisories on branded pharmaceutical firms and their products. We empirically assess the impact of recent FDA advisories on the stock market valuations of a sample of branded pharmaceutical manufacturing firms using event study methods. We examine whether and how branded pharmaceutical manufacturers respond to an advisory by assessing changes in promotion compared to non-affected firms. We find firms targeted by an advisory have average stock price declines of 3% in three days and 11% in five days following the advisory release, and in turn appear to decrease total physician-directed promotion spending, journals ads and detailing visits significantly six months following the advisory release; the provision of free samples is unaffected. We find no changes among therapeutic substitutes unaffected by the advisory. Results of sensitivity analyses suggest firms with market dominant positions experience similar decreases in stock market valuations and physician-directed promotion compared to pooled results. The results are also robust to alternative definitions of the timing of advisory release dates and the severity of advisories' wording. Theory and empirical results suggest the public release of FDA advisories negatively impacts firm's short-term market valuations. The results suggest an additional rationale for previously documented declines in prescribing after FDA advisory releases - significant declines in physician-directed promotion following FDA advisory releases; the combined (and likely correlated) effects of the release of the advisory and declines in physician-directed promotion on prescribing behavior are likely larger than the sum of the independent effects. |
| 主题 | Microeconomics ; Households and Firms ; Market Structure and Distribution ; Health, Education, and Welfare ; Health ; Other ; Law and Economics ; Industrial Organization ; Market Structure and Firm Performance |
| URL | https://www.nber.org/papers/w17528 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/575202 |
| 推荐引用方式 GB/T 7714 | Rena M. Conti,Haiden A. Huskamp,Ernst R. Berndt. The Effect of FDA Advisories on Branded Pharmaceutical Firms' Valuations and Promotion Efforts. 2011. |
| 条目包含的文件 | ||||||
| 文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
| w17528.pdf（651KB） | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 | ||
除非特别说明，本系统中所有内容都受版权保护，并保留所有权利。
