The main findings of this article determined that while both market situations and firm characteristics are important in determining when pharmaceutical companies will develop and release new drugs, the interaction between these two primary forces is fundamental in this determination. Specifically, pharmaceutical companies are much more likely to launch products in new markets that more closely resemble the situations in their home markets. This is even more true when the markets are geographically and politically foreign, and not simply based around a different type of drug. Also, pharmaceutical companies are more likely to enter into competition with incumbent product producers that are foreign-based than with domestic competitors.
This study provided a lot of insight into how the pharmaceutical world works in general, as...
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