Defining the Relevant Market in Pharmaceutical Antitrust Cases

Thu Nov 30 14:53:58 EST 2017
Dr. Stephanie Demperio and Jennifer Cascone Fauver

In the November 2017 issue of Antitrust Healthcare Chronicle published by the American Bar Association Section of Antitrust Law, NERA Associate Director, Jennifer Cascone Fauver and Senior Consultant, Dr. Stephanie Demperio authored an article on Defining the Relevant Market in Pharmaceutical Antitrust Cases: Using Econometrics to Find Evidence of Substitution Without a SSNIP Test.

In the article the authors discuss why the empirical implementation of a SSNIP test is likely to be untenable in brand name prescription drug cases, and why the implementation of such a test can lead to unreliable conclusions regarding economic substitution. The authors also examine how natural experiments can be used to generate quantitative evidence on economic substitution and inform the relevant market definition when a SSNIP test is not possible.