Availability Of New Products Research Articles

Increased use of antidepressants in Canada: 1981-2000.

To provide a descriptive analysis of Canadian utilization (prescriptions, cost, cost per prescription) of antidepressants (ATC-code: N06A). IMS Canada provided prescription volumes and costs from 1981 to 2000. We analyzed time trends for antidepressants in general and 4 subclasses (tricyclic antidepressants [TCAs], selective serotonin-reuptake inhibitors [SSRIs], dual action antidepressants [DAAs], and monoamine oxidase inhibitors [MAOIs]). Costs were discounted using the consumer price index, adjusting for population growth using data from Statistics Canada. Between 1981 and 2000, total prescriptions increased from 3.2 to 14.5 million. Market share of TCAs (23.7%) and MAOIs (2.1%) remained constant, despite the introduction of the first SSRI, fluoxetine, in 1989. SSRI prescriptions increased to 6.7 million (market share 46.3%). DAA use increased gradually after 1994 to 3.5 million prescriptions (23.9% market share) in 2000. The number of prescriptions expanded (possibly due to SSRIs) by 238%, with an increased cost of 2.7 billion dollars. Total expenditures for antidepressants increased exponentially, from 31.4 million dollars in 1981 to 543.4 million dollars in 2000 (y = 4E - 130e(0.1556x) [R(2) = 0.99]). Cost per prescription increased linearly from 9.85 dollars in 1981 to 37.44 dollars in 2000 (y = 1.72x + 7.92 [R(2) = 0.96]). Utilization and costs of pharmacotherapy for depression have increased above the inflation rate and are expected to exceed 1.2 billion dollars (50 dollars per prescription) in 2005. Increased costs may be due to increased availability of new products with increased safety, efficacy, and acquisition cost; increased number of users; and increasing costs.

Tax Policy, Location Choices, and Market Structure

A structural model of entry and fiscal policy is presented. It shows that taxation of variable production costs can increase product prices, lower competition, and reduce the availability of new products in small markets. The model's test is based on a unique nationwide fiscal experiment. We study the effects of the 1869 stamped paper tax reform act on the market for daily newspapers in the Netherlands. The econometric analysis uses data on when and where the newspapers existed and were introduced together with demographic census data from 1859 and 1869. The results confirm the model's predictions and show how taxation affects strategic business location decisions.

Current Management of Hemophilia B

The management of hemorrhagic episodes in patients with hemophilia B is in transition as a result of the availability of new products for replacement therapy. Although the basic principles of therapy have not changed, the new highly purified Factor IX concentrates, AlphaNine and Mononine, represent a break-through, as they appear to be safe in terms of viral transmission and thromboembolic side-effects. These products are now widely available, and although expensive, are regarded by some physicians as the preferred therapy for Hemophilia B. Less pure and less expensive Factor IX products, however, are also available and can be used safely in previously treated patients who have already been exposed to the hepatitis viruses.

Engines of energy innovation: Smaller manufacturers of efficient lighting products

Availability of new products is essential to improving the energy efficiency of lighting systems. Without improvement in technology, the changing needs of the marketplace cannot be met. The lesser-known contributions made by new, smaller manufacturers have been providing a disproportionate share of the momentum for energy improvement in the U.S. We present case studies of the role smaller manufacturers played in introducing three innovative products to the American market: fluorescents adapted to retrofit a screw-in socket, low-harmonics electronic ballasts, and remotely ballasted compact fluorescents. In each case, the introduction spawned further development, not only in new product lines, but in whole new markets.

Coordinating Decisions for Increased Profits

This paper describes how a major tire manufacturer has attained an increase in productivity through the application of Management Science. Like most manufacturers, The Kelly-Springfield Tire Company has long recognized the difficulty and importance of coordinating sales forecasting, inventory control, production planning, and distribution decisions. The evolution of an integrated “Total System” approach is traced, with emphasis on the ability of the latest Management Science system to adapt to the constantly changing tire business. The original Total System, implemented in 1970, reduced production lead time to generate estimated annual savings of $500,000; benefits totaling over $5 million during the past decade. Since the implementation of the latest system in 1976, Kelly-Springfield's share of the auto and truck tire replacement market has increased about 1% in an industry recently characterized by significant losses, excess productive capacity, and intense price competition. Average unit inventory decreased by 19% while customer service improved, productivity increased, and additional savings totaling $7.9 million annually resulted. Numerous data support facilities were developed to attain the desired flexibility. The resulting capability to supply information quickly and accurately has been employed to obtain improved estimates of profit and loss and return on investment, to plan future sales strategies and advertising campaigns more effectively, to purchase production equipment, to analyze market share and product offerings, and to make and satisfy commitments to customers regarding availability of new products.