Friday, October 18, 2019

What determines the research and development costs for innovative new PowerPoint Presentation

What determines the research and development costs for innovative new prescription drugs, how might legal and ethical considerations affect the cost of developing a new prescription drug - PowerPoint Presentation Example As a function of describing and critiquing each of these constraints, this author will analyze each of these factors and attempt to draw a clear level of discussion as a means of identifying the core components and key considerations that must be engaged with as a function of the developmental cycle for new/prospective pharmaceuticals. As a guiding entity of the process, the legal departments of the requisite entities must be continually engaged and aware of the process. This represents an added cost and necessity that each and every pharmaceutical firm engaged in research and development must necessarily incorporate a team of legal experts and lawyers to guide them through each and every process of clinical trials, reporting requirements, paperwork, and associated compliance issues. Ultimately, economic theory dictates that that price discrimination corresponds to the following three market conditions: the power of market sellers, the segmentation and overall price responsiveness of the market, and the direct and indirect potential that exists for arbitrage. With respect to market power, this is a concept which can simply be understood as a function of the ability of the seller to raise its prices as compared to the other sellers that exist within the market. Obviously, in the case of a brand name drug that has r ecently been cleared by clinical trials and is available to the marketplace, the ability of the seller to raise his/her prices above that of the competition is very high due to the fact that no perfect substitute exists and there is a near perfect monopoly engaged by the given pharmaceutical manufacturer; albeit for a limited amount of time (Gupta et al 2011, p. 15). As a way of understanding such a construct to a more full and complete level, the researcher and/or reader must consider the total cost that is necessitated in bringing a drug to market in the first

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