Chapter MC, Problem 5.6DQ

Summary Introduction

Case summary:

In the 1990s, researchers at pharmaceutical Company P has developed a drug to treat the heart disease. The drugs are developed in order to prevent the patients from the blood clots and to improve the blood flow. However, the unexpected side-effect of the drugs is prolonged erections. This resulted in the blockbuster Drug V.

The patent of Drug V expires in 2020. Hence, Company T will begin to sell the generic version of Drug V, as they signed a contract with Company P. A research state that more than 30 million of men from Country U has experience Erectile Dysfunction (ED). Thus, the competition becomes intense.

To determine: Why Person L used an over-the-counter deal instead of a generic drug deal as Company P did with Company T.