The Successful Launch and Diffusion of New Therapies - Innovation and Marketing in the Pharmaceutical Industry - page 209

Table 7.2 (continued)

Early sales (<3.5 years after launch) per 1,000
inhabitants

Late (>3.5 years after launch) sales per 1,000
inhabitants

% Dev.
from mean

% Dev.
from mean Country Rank Country Rank

Kuwait −40 29 Israel −53 30

Israel −56 31 Saudi Arabia −61 32

Turkey −68 36 United Arab Emirates −69 35

Jordan −83 45 India −77 39

India −84 46 Jordan −80 41

Philippines −94 53 Philippines −96 52

South America − 80 − 79

Venezuela −58 32 Uruguay −63 33

Chile −72 37 Chile −64 34

Argentina −74 38 Argentina −70 36

Brazil −79 41 Venezuela −80 42

Uruguay −82 42 Brazil −86 44

Ecuador −88 49 Colombia −87 46

Colombia −91 51 Ecuador −87 47

Peru −93 52 Peru −91 50

Africa − 80 − 83

Tunisia −60 33 Egypt −72 37

South Africa −82 44 Tunisia −75 38

Egypt −86 47 South Africa −89 49

Morocco −90 50 Morocco −97 53

a Based on joint work of Stefan Stremersch and AurélieLemmens

2011 ). Kyle ( 2007 ) investigated the effect of price regulation on the number of new
drug launches and the timing of launch and found that price regulation causes phar-
maceutical companies to delay launch and leads to fewer launches. She also finds
that drugs are 1.5 times more likely to be launched in countries that share a language
border with the country in which the headquarter of the pharmaceutical company is
located (Kyle 2007 ). In addition to these effects, Kyle ( 2006 ) also investigated other
drivers such as the number of competitors, corruption index of a country, and admin-
istrative costs in a country. Danzon et al. ( 2005 ) examined launch timing of new
drugs in 25 countries worldwide and observed an effect of expected drug price and
expected market size (the data they evaluated included lagged average price and
market size of drugs in the same therapeutic class). After controlling for a home
country effect and global experience, the researchers found that pharmaceutical
companies launch fewer new drugs and that they launch them at a later time in
countries with a lower expected drug price and lower expected market size.
Lanjouw ( 2005 ) also focused on drivers of launch timing and showed that price
regulation tends to lower the launch speed, whereas she found mixed results for pat-
ent protection regulation (results were dependent on the specifics of the regulation).