MOR 465 Lecture Notes - Lecture 2: Pharmaceutical Industry

• School: USC
• Department: Management and Organization
• Course: MOR 465
• Professor: padler

Document Summary

The pharmaceutical industry faces the dilemma of lowering the price of hiv/aids drugs to make it available to millions of more people across the world or to keep the price of the drugs high to recover the. Society, investors, pharmaceutical company owners, workers and users. Decreased revenues in one drug will prompt innovation in more lucrative drugs, thereby maintaining the life of the organization in the pharmaceutical industry. What is the root issue the client must resolve in order to deal with this critical challenge? (explain your reasoning, succinctly. ) To deal with the challenge, the client must decide what the organizations priority is. It should evaluate the lowest possible price it could sell the drug at without incurring loss. Would be a good recommendation to alleviate the issue. With government incentives and protection, people will get more effective, new drugs. Patent rights promote creativity by allowing the innovator to reap benefits of his creation, therefore should continue.