Explaining Vertical Integration in the Generic Pharmaceutical Industry

  title={Explaining Vertical Integration in the Generic Pharmaceutical Industry},
  author={Kensuke Kubo},
This paper explores the motives for vertical integration in the US generic pharmaceutical industry. There is some evidence of strategic complementarity: a firm is more likely to enter a generic drug market in a vertically integrated manner if it expects a higher degree of vertical integration among rivals. This suggests that vertical integration is characterized by bandwagon behavior. While bandwagon effects have been widely discussed in the vertical integration literature, this is one of the… CONTINUE READING


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