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This chapter describes the market for pharmaceuticals, which exceeded $500 million in sales in 2010. The industry is … also characterized by extensive regulation of almost every activity, from product development through manufacturing and …
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expenditures. On the other hand, regulation distorts incentives to invest in pharmaceutical R&D. This study aims at empirically … assessing the impact of regulation on pharmaceutical R&D expenditures. Methods: We analyze a sample of 20 leading pharmaceutical … companies between 2000 and 2008. The share of sales in Europe serves as a proxy for the degree of pharmaceutical regulation. We …
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