Question

A director of the Rexx Pharmaceutical Company argued that the development costs for new vaccines that the health department has requested should be subsidized by the government, since the marketing of vaccines promised to be less profitable than the marketing of any other pharmaceutical product. In support of this claim the director argued that sales of vaccines are likely to be lower since each vaccine is administered to a patient only once, whereas medicines that combat diseases and chronic illnesses are administered many times to each patient.

Answer 1

The director of the Rexx Pharmaceutical Company argues that the government should subsidize the development costs for new vaccines due to lower sales potential compared to chronic medicines for illnesses.

Step-by-step explanation:

The director of the Rexx Pharmaceutical Company argues that the development costs for new vaccines should be subsidized by the government, as selling vaccines may be less profitable compared to other pharmaceutical products. The director highlights that vaccine sales are lower because each vaccine is administered once to a patient, whereas medicines for chronic illnesses are administered multiple times. The argument is that this lower sales potential makes it less attractive for pharmaceutical companies to invest in vaccine development without government support.