The cost of drug research and development is staggering. : GMAT Critical Reasoning (CR)
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 18 Jan 2017, 15:16

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# The cost of drug research and development is staggering.

Author Message
TAGS:

### Hide Tags

Current Student
Joined: 29 Jan 2005
Posts: 5238
Followers: 25

Kudos [?]: 377 [0], given: 0

The cost of drug research and development is staggering. [#permalink]

### Show Tags

22 Nov 2005, 09:34
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 1 sessions

### HideShow timer Statistics

The cost of drug research and development is staggering. Drug companies have recently argued that this is a good reason to lengthen the patent on new drugs and disallow the importation of drugs from Canada. But some senior citizens advocate groups have argued that the high cost of research and development is a good reason to allow generic and, perhaps, imported drugs to benefit those with fixed incomes.

Which statement, if true, best resolves this seeming paradox?

(A) The advocate groups are aware that drugs from Canada are poorly regulated and may be dangerous.
(B) The cost of medical care has increased greatly in recent years.
(C) Drug companies invest very little money in research and development.
(D) It is common knowledge that drug companies will not pay for extensive research programs if they do not anticipate any a return on their investment.
(E) The advocate groups also claim the high costs of research should be supported by government grants.
If you have any questions
New!
Senior Manager
Joined: 22 Nov 2005
Posts: 476
Followers: 2

Kudos [?]: 20 [0], given: 0

### Show Tags

22 Nov 2005, 10:19
I think it's E
SVP
Joined: 28 May 2005
Posts: 1723
Location: Dhaka
Followers: 7

Kudos [?]: 326 [0], given: 0

### Show Tags

22 Nov 2005, 12:08
I think it is D.
_________________

hey ya......

Senior Manager
Joined: 11 May 2004
Posts: 458
Location: New York
Followers: 1

Kudos [?]: 47 [0], given: 0

### Show Tags

22 Nov 2005, 12:58
D here

All other choices are out of scope or dont make sense to the stimulus

GMATT73 wrote:
The cost of drug research and development is staggering. Drug companies have recently argued that this is a good reason to lengthen the patent on new drugs and disallow the importation of drugs from Canada. But some senior citizens advocate groups have argued that the high cost of research and development is a good reason to allow generic and, perhaps, imported drugs to benefit those with fixed incomes.

Which statement, if true, best resolves this seeming paradox?

(A) The advocate groups are aware that drugs from Canada are poorly regulated and may be dangerous.
(B) The cost of medical care has increased greatly in recent years.
(C) Drug companies invest very little money in research and development.
(D) It is common knowledge that drug companies will not pay for extensive research programs if they do not anticipate any a return on their investment.
(E) The advocate groups also claim the high costs of research should be supported by government grants.
Senior Manager
Joined: 11 May 2004
Posts: 458
Location: New York
Followers: 1

Kudos [?]: 47 [0], given: 0

### Show Tags

22 Nov 2005, 13:21
Argument deals withe cost for companies and cost for old folks.

D presents the info to clarify the points.
GMAT Club Legend
Joined: 07 Jul 2004
Posts: 5062
Location: Singapore
Followers: 30

Kudos [?]: 357 [0], given: 0

### Show Tags

22 Nov 2005, 20:44
I go with D. If there are imported drugs (and generic ones) competing for a market share with the ones currently in research and development, then the drug companies will not see a reason to invest in the proram.
VP
Joined: 07 Nov 2005
Posts: 1131
Location: India
Followers: 5

Kudos [?]: 41 [0], given: 1

### Show Tags

22 Nov 2005, 21:34
I will go with D
VP
Joined: 07 Nov 2005
Posts: 1131
Location: India
Followers: 5

Kudos [?]: 41 [0], given: 1

### Show Tags

22 Nov 2005, 21:35
I will go with D
Current Student
Joined: 29 Jan 2005
Posts: 5238
Followers: 25

Kudos [?]: 377 [0], given: 0

### Show Tags

22 Nov 2005, 23:02
The answer is not D gang. Any other guesses? According to the source, this is a V42 level CR, so let`s wait for some more guesses before posting the OA/OE.
Director
Joined: 15 Aug 2005
Posts: 798
Location: Singapore
Followers: 2

Kudos [?]: 55 [0], given: 0

### Show Tags

22 Nov 2005, 23:10

problem1 - drug companies want a ban on generic drugs because they want to recoup their expenses. They are not bothered about the old folks.

problem2 - the old chaps want generics because they cannot afford the drug company drugs as they are expensive.

The solution is E!
As per E, the government pays the research grants for the drug companies. This solves both problem 1 and 2.
Govt grants eases the pressure on drug companeis to recoup their investment. So they wont press for a ban on generics.
As companies wont insist on ban on generics, the old folks are also happy.
_________________

Cheers, Rahul.

GMAT Club Legend
Joined: 07 Jul 2004
Posts: 5062
Location: Singapore
Followers: 30

Kudos [?]: 357 [0], given: 0

### Show Tags

22 Nov 2005, 23:15
Current Student
Joined: 29 Jan 2005
Posts: 5238
Followers: 25

Kudos [?]: 377 [0], given: 0

### Show Tags

22 Nov 2005, 23:18
Yep, Rahul got it!

OA is E.

OE:

Step 1: ID Question Type and Task

Step 2: Read the Argument and Extract Necessary Information:
The necessary information is the paradox, identify the paradox and pose it to yourself as a question.

Paradox: What would explain why the seniors group cites the high costs of R&D for their position, when the drug companies use the same reason for the opposite position?

Step 3: Formulate an Answer to the Question
Formulate a resolution to the paradox (if possible).

Remember, the best answer provides a connection between the two sides of the paradox without changing or discounting either side.

(A) Eliminate. This exacerbates the paradox by giving reason why the seniors group would want the same thing as the drug companies.

(B) Eliminate. This does not deal with the paradox (which is drug costs, not medical care costs).

(C) Eliminate. This is contradictory to the prompt.

(D) Eliminate. This is irrelevant to the disagreement.

(E) Keep. This would explain why the seniors group cited the same reasons as the drug companies, since they expect the slack from cheaper drugs to be picked up by the federal government.

Step 5: Identify differences in remaining choices

(E) is the only remaining choice and is the correct answer.
22 Nov 2005, 23:18
Similar topics Replies Last post
Similar
Topics:
13 Recently, the research and development departments at major 10 04 Oct 2013, 07:38
4 Recently, the research and development departments at major 14 10 Jul 2011, 09:02
71 Recently, the research and development departments at major 33 17 Oct 2010, 16:41
36 Spending on research and development by United States 22 08 May 2010, 04:35
1 The cost of drug research and development is staggering. 14 03 May 2008, 05:44
Display posts from previous: Sort by