Document Type
Report
Publication Date
1-8-2025
Abstract
In recent decades, the pharmaceutical industry has become increasingly concentrated in the United States, in part due to mergers and acquisitions (M&As) between drug manufacturers. This consolidation from M&As has been cited as a key factor affecting drug prices and drug shortages (U.S. Federal Trade Commission, 2022). In this study, we assessed trends in pharmaceutical M&As during 2010–2023 and evaluated the characteristics of drugs and companies involved in those M&As. We considered the effects of M&As on market concentration, drug prices, drug quantity sold, and drug shortages. We also considered how these associations vary by drug characteristics, including brand drugs versus generics, small molecule (i.e., chemical) drugs versus biological products, and essential medicines versus drugs not on essential medicines lists (EMLs). We used a combination of public and proprietary data sources on M&As, drug sales, drug shortages, and essential medicines. To establish drug ownership at the time of an M&A, we accessed historical archives of various U.S. Food & Drug Administration (FDA) datasets containing drug sponsor and application information, including Approved Drug Products with Therapeutic Equivalence Evaluations (commonly known as the Orange Book), the Purple Book, and the National Drug Code (NDC) Directory, among others.
Recommended Citation
McGeeney, J. Daniel M.S.; Sertkaya, Aylin Ph.D.; Ross, Leah M.A.; Ledley, Fred M.D.; and Hyman, Cody Ph.D., 2025. Mergers and Acquisitions (M&As) in Pharmaceutical Markets: Associations with Market Concentration, Prices, Drug Quantity Sold, and Shortages, CISI Publication.
Included in
Pharmaceutics and Drug Design Commons, Pharmacoeconomics and Pharmaceutical Economics Commons, Pharmacy Administration, Policy and Regulation Commons
