Question

Pharmaceutical companies are sometimes perceived as profiting unfairly from drugs they sell. Suppose that a new law shortens the time during which the manufacturer has exclusive use of the drug formula. Place the events in sequence to illustrate how restricting profits by pharmaceutical companies will affect innovation.

a. Pharmaceutical companies reduce their estimate of the profitability of new drug research.
b. Fewer new drugs are brought to market.
c. Pharmaceutical companies are less willing, to invest in drug development.

Answer 1

1. Pharmaceutical companies reduce their estimate of the profitability of new drug research.

2. Pharmaceutical companies are less willing to invest in drug development.

3. Fewer new drugs are brought to market.

Step-by-step explanation:

Given that the pharmaceutical companies are recognized as making profits in an unfair way by selling drugs. Now there is a new law which shortens the duration of time of the use of the drug formula by the manufacturer.

Thus the events in a sequence order which shows how the restricting profits by the pharmaceutical companies affects the innovation are :

• The companies tries to reduce their estimate of profitability of the new drug research.
• The pharmaceutical research does not want to invest their money in the research and development of the drugs.
• Only few drugs are put in the market.