DQ-5 - samples or make them available in the government...

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in reference to the Orphan Drug Act passed by Congress in 1983. In your opinion, when is it acceptable—or even good—that the government sponsors products that sell so poorly they cannot turn a profit? When is it unacceptable? Explain your response.(100-150 words) Ans. Basically Orphan Drug Act, which was passed in USA in 1983, had the sole motive to manufacture that medicine which was for the cure of a rare disease that has small markets. Under law the company producing the drug could sell it into the market for seven consecutive years without competition. In my opinion it would be best if the government gives these kind of drugs as free
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Unformatted text preview: samples or make them available in the government hospitals and dispensaries for free of cost or at concession prices. Or government could give the manufacturing firm subsidiaries so their cost doesn’t hike. It is unacceptable to make available the drug when the manufacturing cost itself is high. It is also possible that the producer has spent a lot on research and equipment that it is not possible to sell the drug at cheap rates as the producer has the monopoly in the market with the consent of law so they will make profit and not sell the medicine at cost or concession rates....
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This note was uploaded on 04/11/2011 for the course ACC 305 taught by Professor Allison during the Spring '11 term at Western Intl..

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