Barriers to entry in the Canadian pharmaceutical industry. Comments, clarification and extensions.

In a recent issue of this Journal, McRae and Tapon (1985) use the Canadian experience with compulsory patent licensing and three provincial drug reimbursement programs to evaluate post-patent barriers to entry in the pharmaceutical industry. In this paper we provide additional evidence on the influence of differing provincial regulations on the market share of the late entrants. In some important respects these results suggest different conclusions than those of McRae and Tapon (1985).