Pharmaceutical companies can expect to earn large profits


Pharmaceutical companies can expect to earn large profits from blockbuster drugs (for high blood pressure, depression, ulcers, allergies, sexual dysfunction) while under paten protection. Upon patent expiration, numerous rival drug companies offer generic versions of the drug to consumers. (The original continues to market the drug under its trade name and usually offers a second generic version of the drug as well.) Discuss the effect of patent expiration on market structure, pricing, and profitability for the drug.

Request for Solution File

Ask an Expert for Answer!!
Operation Management: Pharmaceutical companies can expect to earn large profits
Reference No:- TGS02576349

Expected delivery within 24 Hours