The Successful Launch and Diffusion of New Therapies - Innovation and Marketing in the Pharmaceutical Industry - page 212

Table 7.3 (continued)

% Deviation from mean
price at launch per gram
Slovakia 12.77 0.78
Lithuania 14.02 −0.61
Africa and the Middle East 14.51 −13.31
Kuwait 4.42 −1.81
South Africa 5.14 −26.11
United Arabic Emirates 6.49 4.33
Lebanon 6.77 −16.32
Jordan 12.37 −7.89
Egypt 17.86 −29.10
Saudi Arabia 19.40 −13.37
Morocco 20.88 −8.67
Tunisia 37.28 −20.82
a Based on the work of Isabel Verniers, Stefan Stremersch, and Christophe Croux

Mean lead (−) or lag (+) in
launch window (in months) World region and countries

low price in that country, whereas a positive deviation indicates that a drug is
typically launched at a relatively high price in that country.
Table 7.3 shows that the USA, Germany, and Denmark experience the largest
lead in launch. Tunisia, Morocco, and Saudi Arabia experience the largest lag in
launch. North America and Western Europe show similar (small) launch delays.
Launch delays are largest in Eastern Europe, Africa, and the Middle East. There
is a marked difference in launch timing between Western Europe (fast) and
Eastern Europe (slow), despite many of these launches having occurred recently.
Puerto Rico, Japan, and the USA have the largest positive deviation from the
average launch price worldwide, whereas Egypt, South Africa, and Tunisia show
the largest negative deviation from the worldwide average launch price. North
America, South America, and Asia show positive deviations from the worldwide
average launch price, while the other world regions—including Europe—show a
negative deviation from the average launch price worldwide (Verniers et al.
2011 ).
When a pharmaceutical firm launches a drug in multiple countries worldwide,
it needs to decide on the sequence of countries in which the launch will take place.
As the launch price is a decision that is being made simultaneously, Verniers et al.
( 2011 ) examined whether launch timing is interrelated with launch price. They
found that launch timing has a curvilinear effect on launch price, whereas launch
price has a U-shaped effect on launch timing. This means that launch occurs fast-
est at moderate price levels. One can therefore infer that for pharmaceutical com-
panies, a tradeoff is being made between the amount of time left under patent
protection and the price needed to recoup R&D investments. Health regulators
make a tradeoff between access of new drugs to society and the level of health
expenditures.