AFM121 Lecture Notes - Lecture 9: Retained Earnings, Mark Zuckerberg, Berkshire Hathaway

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM121
• Professor: Garvin Blair

Document Summary

Can(cid:519)t get approval for plant and get can(cid:519)t approval for drug. Cutting regulations - tremendous protection for the people. Increase competition and bidding wars - lower drug prices. Medicare - increased negotiating power - lower prices. Move companies back to the united states. Deregulation: fewer testing processes with regards to drugs. Phases: testing starting with animals, eventually moving up to a large number of humans (cid:522)clinical trial process(cid:523) Often takes years from the concept of something in a lab, up to market. Could potentially bring more drugs to market. If the company was originally footing the cost for the production, they will make more profit. Share prices will increase since there(cid:519)s confidence that their profit will increase. Provides health insurance to those in the us who are 65+ Universal health care to people over 65. Us is largest purchaser of drugs in the world. The company gets a monopoly on that drug for x number of years.