When the Price Isn’t Right — Lundbeck and a Path to Analyze Competition in Drug Research and Development

Posted by Social Science Research Network

When the Price Isn’t Right — Lundbeck and a Path to Analyze Competition in Drug Research and Development Kent Bernard (Fordham University)

Abstract: The classic starting point in merger analysis is to view market definition and competition in terms of price. But in some cases, such as the one here, price is not the determining factor. This article begins by looking at Lundbeck in enough detail to understand why the court rejected the FTC’s price-driven market definition. It then lays out a way to analyze potential competitive impact in such nonprice, patent-centric cases.