ABSTRACT

Most studies embed pharmaceutical firms within firms in different industries in studies of innovation, prices, and returns to make up for sample size and to infer aggregate industry performance from market structure. But the industry structure appears fragmented at best, with waves of mergers occurring to confront globalization and intellectual property rights (The Economist June 23, 2001). Information about the structural direction that the industry will take resides within the brain cells of the CEOs of major companies.