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Common Ownership May Reduce the Entry of Cheaper Generic Drugs

Martin Schmalz and Jin Xie
In new research, Martin Schmalz and Jin Xie examine how shareholder preferences influence the United States pharmaceutical industry. They find that generic-drug manufacturers sometimes harm their firms’ own value when doing so benefits shareholder portfolios, who frequently have stakes in competing brand-name firms.

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February 19: How the Financial Sector is Rigged Against You and How to Fix It

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