– Assignment 08.1: Drug Pricing Plan

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Directions: Write a 750 to 1,000 word paper on the following:  Conduct research to determine how different pharmaceutical companies price their prescription drugs.  Be sure to study and to understand the process and costs of developing new drugs.  Discuss why their prices and output can vary from market to market and how the prices might change over time.  (Some of these companies include Johnson #038; Johnson, Pfizer, Roche, and GlaxoSmithKline, among others, and visiting their company websites will prove useful.) 

Now assume that your drug company is in the final stages of developing three new drugs.  One of these helps to reduce cholesterol, one is a treatment for an extremely rare disease, and the third is a treatment for cancer.  Create a pricing and output plan for these drugs that is in line with the expected development costs, market demand, production costs, and the competition that you will face in the market for your drug.  Be sure to defend your answer. 

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