Competition Issues in the Distribution of Pharmaceuticals in Jamaica


The free flow of information among market participants is one of the critical assumptions of a competitive market. In 2007, the Fair Trading Commission published a report on the results of its study of the distribution of prescription drugs in Jamaica. The report describes the structure of the various stages of the distribution chain and documents perceptions on the part of consumers, among others, regarding limitations in the substitutability of generic for innovator drugs. The study concluded that, among other things, the absence of a mechanism for policymakers to capture and respond to consumer perceptions, real or contrived, is likely impeding competition between generics and innovators.

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