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How do the size of the cash marke matter

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Suppose the third and fourth largest pharmaceutical companies by revenues announce a merger. Both have extensive product lines and market prescription drugs all over the world. Are the following antitrust markets:

(a) All prescription drugs.

(b) All pharmaceuticals made by "brand-name" firms-typically inventors of drugs.

(c) All pharmaceuticals made by generic firms-firms that enter and produce drugs for which patent protection has expired.

(d) All treatments for an affliction.

(e) A particular molecule.

(f) The brand-name version of a molecule.

(g) How do the following matter? (i) no legal scope for pharmacists to substitute generics for a brand-name prescription vs. mandatory substitution rules to the cheapest formulation of the same molecule; (ii) size of the cash market; (iii) size of deductibles for those covered by insurance; (iv) dispensing fees based on the value of the prescription vs. fixed dispensing fees.

Reference no: EM13874528

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