Evolution Of Market Share Research Articles

The Price and Market Share Evolution of the Original Biologics and Their Biosimilars in Finland.

BackgroundBiological drugs are generally expensive and produce a continuously growing share of drug costs. Yet they are essential in the treatment of many chronic diseases. Biosimilars, clinically equivalent to biological originator products, are expected to restrain drug costs in the biological market.ObjectiveThis study aimed to examine the impact of the biosimilar market entry on the prices of the reference products in outpatient care in Finland, investigate the impact of biosimilar market entries on price competition among biological medicinal products, and examine how the prices and market shares of outpatient biosimilars have developed in Finland during 2009–2020.MethodsThis retrospective register study applied data from IQVIA covering national community pharmacy wholesale data between 1 January, 2009, and 31 August, 2020, for somatropin, epoetin, filgrastim, follitropin, insulin glargine, insulin lispro, etanercept, pegfilgrastim, adalimumab, teriparatide, and enoxaparin biosimilars and their reference products, in addition to two relevant insulin products. We determined the monthly wholesale amounts in defined daily doses and wholesale weighted average prices (excluding value-added tax) per defined daily dose for each product. We analyzed the evolution of the price and market shares. We performed a linear segmented regression analysis to examine the impact of the market entry of biosimilars on the prices of reference products.ResultsThe prices of the reference products mainly decreased after the biosimilar entered the market. If the reference product price was not reduced, it was no longer reimbursable after evaluation under the Health Insurance Act, leading to marginal market shares. The changes in the prices of biosimilars were not as remarkable as the changes in the prices of reference products after the biosimilar market entry. For most active substances, biosimilar prices were stable or decreased. The utilization of biosimilars varied widely between different active substances at the end of the observation period.ConclusionsChanges in pricing policy and the public reimbursement scheme related to the market entry of biosimilars were the main reasons for the decrease in the prices of reference products. Therefore, biosimilars did not generate genuine price competition between biological products. In many of the drug groups examined, the market shares of biosimilars have growth potential in the future.Supplementary InformationThe online version contains supplementary material available at 10.1007/s40259-022-00540-y.

PMU151 ECONOMIC BURDEN OF BIOSIMILAR DELIVERY IN FRANCE: REAL WORLD ANALYSIS FROM THE PERMANENT SAMPLE OF NATIONAL HEALTH INSURANCE BENEFICIARIES, BETWEEN 2007 TO 2017

Biosimilars drugs represent significant savings for the French National Insurance. The biologic drugs environment is challenging in France and health authorities create stronger incentives to encourage biosimilar prescription and the loss of patents has accelerated. The aim of the study is to analyszed the economic burden and the market share evolution of biosimilar drugs based on claims data “permanent sample of national health insurance” between 2007 (first biosimilar launch) and 2017. Retrospective observational study of biosimilars and reference products consumptions. We have extracted the health insurance reimbursement for all biosimilar and reference medicinal products commercialized in France during the period. Market shares were calculated by dividing the number of biosimilars packages delivered to all drug packages (biosimilar and references). Costs (in Euro) were extrapolated to national level by using coefficient published by the national health insurance office (CNAM). Consumptions of 11 biosimilars and 6 reference drugs were analyzed. Biosimilar expenditures were €0,7 billion compared to €6,5 billion for reference drugs. Biosimilar market shares increased from 4% to 19% between 2010 and 2017. Biosimilar drugs like filgrastim and epoetin had the most important expenditures (respectively €286 million and €186 million). In 2017, these same drugs had the most important market shares with respectively 80% and 63%. On the other side, biosimilar drugs like etanercept and insulin glargin had the smallest expenditures during the period (respectively €7,3 million and €7,2 million) and the smallest market share (4% each) in 2017. This study demonstrate that biosimilar drug market increased during the period. The “Health National Strategy » biosimilar objective for 2022: 80% of market share is achievable if the market keeps the actual trend. Patient’s characteristics description could be complementary to this study, to give more information to the biosimilar landscape.

The evolution of market share among the U.S. options market platforms

Abstract The U.S. equity options market has shown rapid growth, characterized by increased trading volume and new entrants in recent years. As competition in the options market has intensified, each trading venue has attempted to differentiate itself with a unique value proposition aimed at gaining market share. Using a sample that covers key events including the introduction of two new trading venues, we analyze the competition for trading volume, investigate the characteristics of trades and execution costs on the exchanges and examine the evolution of market share in the options industry. We find that exchange market share is positively related to execution quality and quote competition indicators and negatively related to execution costs, while exchanges that use the maker–taker model as their primary pricing model account for, on average, a lower market share than exchanges that use alternative pricing models. Given that exchanges increasingly compete using innovative methods involving market structure such as different order types, fee structures, pricing methods, and priority rules for matching orders, our finding that higher market quality in the form of higher execution quality, lower execution costs, and competitive quotes translates into higher market share is especially noteworthy.

Maladies hémorragiques congénitales : quel avenir pour les dérivés plasmatiques par rapport aux recombinants et aux produits sanguins labiles ?

Until 1990, congenital hemorrhagic disorders were treated by plasma-derived concentrates. The first recombinant drug, recombinant factor VIII was available after this date and few years later recombinant factor IX could also be proposed to patients. The evolution of market share in France was different between these two drugs: while recombinant factor VIII took a large place in hemophilia A treatment (85%), plasma-derived factor IX represent 50% of the French market. In the next years, the arrival of long-acting antihemophilic factors may lead to the dramatically reduce the amount of plasma-derived antihemophilic factors used to treat hemophilia. For rare bleeding coagulation disorders, plasma-derived concentrates are still widely used, while they are the only concentrates available in most diseases. This situation is unlikely to evolve significantly in the next years.

A Hybrid Simulation Approach for Estimating the Market Share Evolution of Electric Vehicles

Meeting the 21st century’s challenges of climate change and scarcity of crude oil requires a better understanding of the forces that ensure a successful market introduction of electric vehicles. Against this background, we develop a hybrid simulation approach to estimate the evolution of market shares of electric vehicles. The approach integrates a system dynamics model with an agent-based discrete choice model. System dynamics is used to model the interdependencies between consumer choice, consumer awareness, evolution of powertrain technologies, and service station availability on the macro level. By integrating the agent-based discrete choice model we refine the model parts of consumer choice and consumer awareness. This allows for considering individual consumer choices. Based on real-world data, we apply the model to the established and saturated German market, where replacement purchases dominate. This way we study the interdependencies between the evolution on the macro level and (1) individual replacement purchases as well as (2) heterogeneous consumer behavior. We show that both effects have a clear influence on the market share evolution of electric vehicles. The results indicate that neglecting individual consumer choices in aggregated system models may lead to systematically wrong estimations of the evolution of the market shares of electric vehicles.

Differences in Innovation Between Food and Manufacturing Firms: An Analysis of Persistence

ABSTRACTThe authors examine the differences in the behavior of the innovation between the Spanish agrifood and manufacturing firms using firm‐level data from 1990–2008 to analyze the persistence in innovation and to explore the explanatory determinants of the probability of being product and process innovator. Survival functions, transition probability matrices, and dynamic discrete choice panel data models are combined to measure persistence. The results suggest that in the food industry the persistence of process innovation is higher than in product innovation. Environmental and market determinants such as market changes or appropriability are more decisive to explain innovation in food industry. By contrast, several determinant variables for innovation activities in the manufacturing sector seem not to be linked with the innovation in food firms. That is the case of the outsourcing ratio and the positive evolution of market share of the individual firm.

An agent-based modeling approach to predict the evolution of market share of electric vehicles: A case study from Iceland

In this paper, an agent-based model is developed to study the market share evolution of passenger vehicles in Iceland, a country rich in domestic renewable energy. The model takes into account internal combustion engine (ICE) vehicles that are currently dominant in the market and electric vehicles (EVs) that are likely to enter the market in the future. The vehicles compete for market penetration through a vehicle choice algorithm that accounts for social influences and consumers' attractiveness for vehicle attributes. The main result provided by the modeling approach is the market share of different vehicles during the time period 2012–2030. The effects of fuel prices, vehicle taxes, future price of EVs and recharging concerns on the market share are analyzed with the help of the model. The results show that EVs would seize the market completely in the scenario combined of high gasoline price, decreasing EV price without tax and no worry about the recharging of EVs. The successful penetration of EVs in the scenarios with low gasoline price and combination of medium gasoline price and constant EV price needs policy supports like tax exemption and an environment where consumers do not suffer from range anxiety.

Social Influence and Evolution of Market Share

Abstract We propose a model for the evolution of market share in the presence of social influence. We study a simple market in which the individuals arrive sequentially and choose one of a number of available products. Their choice of product is a stochastic function of the inherent quality of the product and its market share. Using techniques from stochastic approximation theory, we show that market shares converge to an equilibrium. We also derive the market shares at equilibrium in terms of the level of social influence and the inherent quality of the products. In a special case, in which the choice model is a multinomial logit model, we show that inequality in the market increases with social influence and that with strong enough social influence, monopoly occurs. These results support the observations made in the experimental study of cultural markets in [Salganik et al. 06].

The evolutionary process and collaboration in supply chains

PurposeThe primary aim of this paper is to investigate the evolutionary process and collaboration within Taiwan's cut‐flower supply chains. The paper also go on to discuss the enablement of supply chain coordination through information technology (IT) adoption and network effects, as well as performance improvements achieved by the introduction of the wholesale information sharing hotline (WISH) system.Design/methodology/approachThis paper examines the evolutionary process in Taiwan's cut‐flower supply chains from a macro‐study perspective, based upon primary data obtained from in‐depth interviews. The paper also applies multiple regression analyses from a micro‐study perspective, in order to gain insights into the evolution of market share within the supply chains, thereby facilitating the investigation of the effectiveness of the WISH system.FindingsThe results reveal that the auction houses are heavily dependent upon reliable sources of supply, and that in the earlier stages of the evolutionary process, they played a mediating role in the formulation of auction lines based upon retailer demand through the adoption of the e‐auction mechanism. Since then, the operational performance of the auction houses has been improved considerably, with horizontal coordination being supported by information sharing through the WISH system. The network effect is found to have a positive correlation with the number of participants within the system.Originality/valueThis paper focuses specifically on the evolutionary process of the cut‐flower supply chains in Taiwan, examining the simultaneous achievement of both vertical and horizontal collaboration through the advancement of IT.

Ciclo de Vida e Estágios de Desenvolvimento de Arranjos Produtivos Locais: O Caso do APL de Turismo da Grande Florianópolis

O estudo do ciclo de vida das organizações tem fundamentado diversas teorias sobre as características da gestão e dos empreendedores, de acordo com a fase de desenvolvimento em que a organização se encontra. As aglomerações econômicas, como arranjos produtivos locais (APLs) e os clusters, são organizações inter-empresariais que concentram atividades econômicas em torno de uma, ou mais, vocação regional.

Agent-based modelling of software market share evolution: the factors and simulations

In the software industry, 'market share' refers to the percentage of the total available market that is being serviced by a software product. Market share analysis and prediction are important components of managing the marketing of a software business. In this paper, we study the software market share from an ecosystem point of view. We hypothesise that the evolution of the market share of a software product is dependent on two types of factors: internal and external. We build an agent-based model to represent the evolution of the software market share and compare the market share observations with the market share simulations of various operating systems, web servers and web browsers. The results show that the agent-based model effectively incorporates various factors of software products' market share and successfully simulates their evolution.

Technology choice and timing with positive network effects

When two competing and incompatible products coexist in a market, potential users face a choice between the two products and the alternative of deferring the decision. This paper examines the choice between the two substitutes, where each one is subject to a positive network effect. That is, a user of one of the products experiences an increase in the value for each additional person using the same product. We examine this buy or wait problem, either for an individual or a manager making the investment on behalf of a firm, by formulating and analyzing a decision-theoretic model. To model the stochastic evolution of market share, we build on the generalized Polya urn of Arthur et al. [Arthur, W.B., Ermoliev, Y.M., Kaniovski, Y.M., 1987. Path-dependent processes and the emergence of macro-structure. European Journal Of Operational Research 30 (3), 294–303], allowing for composition of the market to affect not just the relative market shares but also the absolute growth rate of the market. We show that the optimal strategy is defined by a pair of market penetration thresholds that depend on the market composition. Looking at the effect of the network effects on the optimal strategy, we find that more pronounced network effects can either raise or lower the penetration thresholds.

Incorporating stakeholders' perspectives into models of new technology diffusion: The case of fuel-cell vehicles

The literature on the modeling of diffusion of technologies typically uses historical data to calibrate a model. For cases where data on the diffusion of comparable technologies are not available and where high multi-sector stakes are involved, models that use more specific information may be useful. The potential transition to alternative transportation vehicle technologies and fuels, like fuel-cell vehicles and hydrogen, would be an example of such cases. We propose an integration of theoretical frameworks on the diffusion of innovations with data on stakeholders' opinions, to develop estimates of FCVs' market-share evolution. Our estimates of the time scales required for the market, particularly for the initial stages, are longer than those obtained in other studies.

The Evolution of Dominant Market Shares: The Role of Network Effects

This research uses simulation models to examine how dominant market shares can arise from network effects, which occur when the utility a consumer receives from a product is affected by whether others are using the same product. We demonstrate that network effects can have a substantial impact on the evolution of market share, but that the impact is sensitive to a firm’s initial position and the consumer decision-making process. We also examine the merits of investing in product quality versus investing in early acquisition of market share in markets influenced by network effects, and how arguably inferior products may dominate markets.

Competitive Response and Equilibria

This paper investigates the relationship between market share and promotional expenditures the long run. Using data that span a decade and 91 product categories we find that market shares are stationary for a majority of the products in the data base. We find that relative promotional expenditures for the products are offsetting in the long run. Finally, for products whose market shares show a trend, it is difficult to discern the impact of relative promotional expenditure on the evolution of market share. This result generalizes the empirical finding of Bass et al. (Bass, F. M., M. M. Givon, M. U. Kalwani, D. Reibstein, G. P. Wright. 1984. An investigation into the order of the brand choice process. Marketing Sci. 3(4) 267–287.) that “… offsetting competitive activity plays a role in the maintenance of what appears to be stationary and zero order behavior.”

Winning the Export War: British, Japanese and West German Exporters' Strategy Compared

SUMMARYA comparison of pricing policies, price and volume volatility, and investment in distribution, sales and marketing systems across 462 product categories identifies important differences in the strategies of British, Japanese and West German exporters towards the US market. The impact of these strategic choices on the evolution of market share is tested.The results suggest that many British manufacturers' export strategy has been dominated by UK supply and demand considerations. A large proportion of British exports are therefore confined to niches where sensitivity to price fluctuations and ‘stop‐start’ supply is low and local distribution support is less important. Products where ‘pull marketing’ dominates are the key exception.Japanese exporters have invested heavily in US distribution and channel support, combined with a policy of stable US prices, aiding long term penetration. West German exporters have built share on technological advantage and direct sales support supplied from Germany to a limited number of customers.

Untangling the Effects of Purchase Reinforcement and Advertising Carryover

The dynamic evolvement of market share of a brand in a frequently purchased product category can be driven by two effects, purchase reinforcement, and advertising carryover. The first depends on the actual experience with the brand while the second on the retention of its producer's messages. We present a model to estimate simultaneously the relative magnitude of these two forces. The model also formally treats the issue of temporal aggregation. Our empirical results with several product categories indicate that for monthly and bi-monthly measurement periods, purchase reinforcement dominates carryover of advertising in affecting the evolution of market share.

Marketing, expenditure and quality-adjusted price effects on market share evolution in a segmented Belgian car market (1972–81)

Marketing, expenditure and quality-adjusted price effects on market share evolution in a segmented Belgian car market (1972–81)

Price, Quality, and Market Share

To understand the behavior of firms and to assess the degree of competition among firms, we need information on the demand function faced by the firm. Despite this, little published work has been forthcoming on the demand for branded goods and two obvious explanations come to mind: the problem of quality variation among brands of the same commodity and the lack of data on market-share behavior. This contribution is largely concerned with developing an operational version of a demand-forbrand model in which quality variation is explicitly recognized. This is accomplished by following up a suggestion made by Griliches (1961) and generating implicit prices for the range of qualitative attributes a commodity possesses. This allows us to construct quality-adjusted prices for each brand which are the correctly specified prices for the demand equation. The model is tested out in the U.K. market for farm tractors and found to give satisfactory results.