Abstract
The article considers the problem of assessing the level of concentration of market sales, which arises in the process of developing and implementing strategic decisions in the field of pricing in the pharmaceutical market. Information about the level of concentration of sales in the market and the type of market structure demonstrates a certain degree of freedom that can be enjoyed in the process of pricing medicines. The methodology for determining, the advantages and disadvantages of the concentration index and the Herfindahl-Hirschman index, which are currently mainly used in practice to quantify the level of sales concentration in the market, is presented. The results of calculating the concentration index and the Herfindahl-Hirschman index to assess the concentration of sales in two segments of the Russian pharmaceutical market, including antimicrobial ophthalmic drugs, as well as antiglaucoma drugs and miotics, are presented. It is shown that in order to obtain an objective assessment of the level of sales concentration, a comprehensive analysis of the market is required, based on the calculation of additional concentration indicators, which include the relative entropy index, the Rosenbluth index, and the dispersion of market share logarithms. A detailed description of the advantages and disadvantages of the sales concentration indicators proposed for use and the possibilities of their application in the pharmaceutical market is given. On the example of two selected segments of the Russian market of ophthalmic drugs, it is demonstrated that the calculation of five concentration indicators and the interpretation of the data obtained are necessary conditions for obtaining an objective assessment of the competitive situation and, as a result, making informed strategic decisions in the field of drug pricing.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.