NEER WORKING PAPERS SERIES PRICING, PATENT LOSS AND THE MARKET FOR PHARMACEUTICALS Richard G. Frank David S. Salkever Working Paper Mo. 3803 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge. MA 02138 August 1991 This paper was presented at the OTA Sponsored Workshop on Government Policies and Pharmaceutical R&D Methodology. This research was in part supported by a contract from the OTA of the U.S. Congress. We are grateful to Bill Comanor, Randy Ellis, Marty Gaynor, Alison Masson, Tom HcGuire, Walt Salmon, Frederic Scherer, Judy Wagner and participants at the OTA Workshop, the EU-Harvard-MIT Health Economics Workshop, and a seminar at the Rand Corporation for conunents and suggestions. This paper is part of USER's research program in Health Economics. Any opinions expressed are those of the authors and not those of the National Bureau of Economic Research.