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The pharmaceutical industry argues that because new drugs will not be

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The pharmaceutical industry argues that because new drugs will not be  [#permalink]

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New post Updated on: 09 Oct 2018, 17:55
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The pharmaceutical industry argues that because new drugs will not be developed unless heavy development costs can be recouped in later sales, the current 20 years of protection provided by patents should be extended in the case of newly developed drugs. However, in other industries new-product development continues despite high development costs, a fact that indicates that the extension is unnecessary.

Which of the following, if true, most strongly supports the pharmaceutical industry’s argument against the challenge made above?

(A) No industries other than the pharmaceutical industry have asked for an extension of the 20-year limit on patent protection.

(B) Clinical trials of new drugs, which occur after the patent is granted and before the new drug can be marketed, often now take as long as 10 years to complete.

(C) There are several industries in which the ratio of research and development costs to revenues is higher than it is in the pharmaceutical industry.

(D) An existing patent for a drug does not legally prevent pharmaceutical companies from bringing to market alternative drugs, provided they are sufficiently dissimilar to the patented drug.

(E) Much recent industrial innovation has occurred in products—for example, in the computer and electronics industries—for which patent protection is often very ineffective.

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Originally posted by noboru on 24 May 2010, 16:32.
Last edited by bb on 09 Oct 2018, 17:55, edited 2 times in total.
Edited the question.
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Re: The pharmaceutical industry argues that because new drugs will not be  [#permalink]

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New post 25 May 2010, 00:00
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IMO B

In B we give credibility to the claim of the pharmaceutical industry. The 10 year period required for the clinical tests to complete is the reason why the patent is held for 20 years. Thus, B is the best choice to support their claim.

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Re: The pharmaceutical industry argues that because new drugs will not be  [#permalink]

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New post 27 May 2010, 11:14
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(A) No industries other than the pharmaceutical industry have asked for an extension of the 20-year limit on patent protection. - irrelevant

(B) Clinical trials of new drugs, which occur after the patent is granted and before the new drug can be marketed, often now take as long as 10 years to complete. - correct

(C) There are several industries in which the ratio of research and development costs to revenues is higher than it is in the pharmaceutical industry. - we are not talking abt other industries

(D) An existing patent for a drug does not legally prevent pharmaceutical companies from bringing to market alternative drugs, provided they are sufficiently dissimilar to the patented drug. - this actually weakens the phramaceutical industry's claim.

(E) Much recent industrial innovation has occurred in products—for example, in the computer and electronics industries—for which patent protection is often very ineffective. - we are not talking abt other industries
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Re: The pharmaceutical industry argues that because new drugs will not be  [#permalink]

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New post 28 May 2010, 15:02
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noboru wrote:
The pharmaceutical industry argues that because new drugs will not be developed unless heavy development costs can be recouped in later sales, the current 20 years of protection provided by patents should be extended in the case of newly developed drugs. However, in other industries new-product development continues despite high development costs, a fact that indicates that the extension is unnecessary.
Which of the following, if true, most strongly supports the pharmaceutical industry’s argument against the challenge made above?
(A) No industries other than the pharmaceutical industry have asked for an extension of the 20-year limit on patent protection.
(B) Clinical trials of new drugs, which occur after the patent is granted and before the new drug can be marketed, often now take as long as 10 years to complete.
(C) There are several industries in which the ratio of research and development costs to revenues is higher than it is in the pharmaceutical industry.
(D) An existing patent for a drug does not legally prevent pharmaceutical companies from bringing to market alternative drugs, provided they are sufficiently dissimilar to the patented drug.
(E) Much recent industrial innovation has occurred in products—for example, in the computer and electronics industries—for which patent protection is often very ineffective.


A. Other industries not the concern here.
B. That could be a difference with other industries, and make a good point why this specific industry needs a longer term of protection compared to other industries.
C. Doesn't support the pharm. industry.
D. Doesn't support the pharm. industry.
E. Doesn't support the pharm. industry.
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Re: The pharmaceutical industry argues that because new drugs will not be  [#permalink]

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New post 28 May 2010, 15:17
noboru wrote:
The pharmaceutical industry argues that because new drugs will not be developed unless heavy development costs can be recouped in later sales, the current 20 years of protection provided by patents should be extended in the case of newly developed drugs. However, in other industries new-product development continues despite high development costs, a fact that indicates that the extension is unnecessary.
Which of the following, if true, most strongly supports the pharmaceutical industry’s argument against the challenge made above?
(A) No industries other than the pharmaceutical industry have asked for an extension of the 20-year limit on patent protection.
(B) Clinical trials of new drugs, which occur after the patent is granted and before the new drug can be marketed, often now take as long as 10 years to complete.
(C) There are several industries in which the ratio of research and development costs to revenues is higher than it is in the pharmaceutical industry.
(D) An existing patent for a drug does not legally prevent pharmaceutical companies from bringing to market alternative drugs, provided they are sufficiently dissimilar to the patented drug.
(E) Much recent industrial innovation has occurred in products—for example, in the computer and electronics industries—for which patent protection is often very ineffective.


I think B is the only one that further supports the claim by pharmaceutical companies that patent protections should be extended further than 20 years. The fact that it takes 10 years to finish clinical trials which is half the time that patents are protected for.
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Re: The pharmaceutical industry argues that because new drugs will not be  [#permalink]

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New post 09 Jun 2010, 20:00
What is the qs asking?
"in other industries new-product development continues despite high development costs, a fact that indicates that the extension is unnecessary."
Is it asking for an answer that supports that extension is unnecessary?? If so then why not A??
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Re: The pharmaceutical industry argues that because new drugs will not be  [#permalink]

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New post 27 Dec 2010, 16:27
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OA is B.

Of the 20 years, only half are effective so it is ok for these companies to ask for an extension.
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Re: The pharmaceutical industry argues that because new drugs will not be  [#permalink]

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New post 29 Dec 2010, 05:45
noboru wrote:
mundasingh123 wrote:
Is this a GMAT Prep question ?


yes it is

Hi can you Please tag the source especially if its GMATPREP .I thought You always posted LSAT Questions.Thanks
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Re: The pharmaceutical industry argues that because new drugs will not be  [#permalink]

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New post 29 Dec 2010, 07:51
mundasingh123 wrote:
noboru wrote:
mundasingh123 wrote:
Is this a GMAT Prep question ?


yes it is

Hi can you Please tag the source especially if its GMATPREP .I thought You always posted LSAT Questions.Thanks


Yes. I usually post LSAT question (I promise more very soon!). This one was an exception!
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Re: The pharmaceutical industry argues that because new drugs will not be  [#permalink]

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New post 18 Jan 2012, 09:38
seekmba wrote:
(A) No industries other than the pharmaceutical industry have asked for an extension of the 20-year limit on patent protection. - irrelevant

(B) Clinical trials of new drugs, which occur after the patent is granted and before the new drug can be marketed, often now take as long as 10 years to complete. - correct

(C) There are several industries in which the ratio of research and development costs to revenues is higher than it is in the pharmaceutical industry. - we are not talking abt other industries

(D) An existing patent for a drug does not legally prevent pharmaceutical companies from bringing to market alternative drugs, provided they are sufficiently dissimilar to the patented drug. - this actually weakens the phramaceutical industry's claim.

(E) Much recent industrial innovation has occurred in products—for example, in the computer and electronics industries—for which patent protection is often very ineffective. - we are not talking abt other industries


IMO, D is a strong contender.
Assume that company C1 gets a patent and brings a product to the market. Immediately another company C2 produces a similar drug (but complies with the law as per D). Because for the company C2 there is no research cost and less development cost, C2 can bring the drug for lesser price compared to C1's. Hence C1 is forced to slash its price as well, which means they are not able to recoup development cost in later sales. This fact is stated in the first line of the argument. Hence D supports, but does not weakens.

But B is better than D, because if patent expiry time is extended, there will be less no. of companies who will be creating 'similar' drugs. Otherwise, there will be many companies who will create EXACT products immediately after the patent expiry.
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Re: The pharmaceutical industry argues that because new drugs will not be  [#permalink]

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New post 08 Aug 2017, 10:56
The pharmaceutical industry argues that because new drugs will not be developed unless heavy development costs can be recouped in later sales, the current 20 years of protection provided by patents should be extended in the case of newly developed drugs. However, in other industries new-product development continues despite high development costs, a fact that indicates that the extension is unnecessary.

Which of the following, if true, most strongly supports the pharmaceutical industry’s argument against the challenge made above?

(A) No industries other than the pharmaceutical industry have asked for an extension of the 20-year limit on patent protection.
Choice A is incorrect: the fact that the pharmaceutical industry’s request is unique does nothing to justify that request.

(B) Clinical trials of new drugs, which occur after the patent is granted and before the new drug can be marketed, often now take as long as 10 years to complete.
Choice B is the best answer because it provides an explanation: required clinical trials prevent new drugs from being sold for much of the time they receive patent protection.

(C) There are several industries in which the ratio of research and development costs to revenues is higher than it is in the pharmaceutical industry.
it undermines the pharmaceutical industry’s argument, so it is incorrect

(D) An existing patent for a drug does not legally prevent pharmaceutical companies from bringing to market alternative drugs, provided they are sufficiently dissimilar to the patented drug.
Choice D indicates that alternative drugs might render patent protection worthless, but that is clearly no reason to extend the protection.

(E) Much recent industrial innovation has occurred in products—for example, in the computer and electronics industries—for which patent protection is often very ineffective.
it undermines the pharmaceutical industry’s argument, so it is incorrect


Can someone explain option D in more detail?
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Re: The pharmaceutical industry argues that because new drugs will not be  [#permalink]

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New post 13 Aug 2018, 06:30
noboru wrote:
The Official Guide for GMAT Review, 11th Edition, 2005

Practice Question
Question No.: CR 116
Page: 501

The pharmaceutical industry argues that because new drugs will not be developed unless heavy development costs can be recouped in later sales, the current 20 years of protection provided by patents should be extended in the case of newly developed drugs. However, in other industries new-product development continues despite high development costs, a fact that indicates that the extension is unnecessary.

Which of the following, if true, most strongly supports the pharmaceutical industry’s argument against the challenge made above?

(A) No industries other than the pharmaceutical industry have asked for an extension of the 20-year limit on patent protection.

(B) Clinical trials of new drugs, which occur after the patent is granted and before the new drug can be marketed, often now take as long as 10 years to complete.

(C) There are several industries in which the ratio of research and development costs to revenues is higher than it is in the pharmaceutical industry.

(D) An existing patent for a drug does not legally prevent pharmaceutical companies from bringing to market alternative drugs, provided they are sufficiently dissimilar to the patented drug.

(E) Much recent industrial innovation has occurred in products—for example, in the computer and electronics industries—for which patent protection is often very ineffective.


The Pharmaceutical companies:
- New drugs will not be developed unless heavy development costs can be recouped in later sales
Hence, extend the current 20 year protection.

The author:
- In other industries new-product development continues despite high development costs
So the extension is unnecessary

We need to support the pharma companies.

(A) No industries other than the pharmaceutical industry have asked for an extension of the 20-year limit on patent protection.
If they haven't asked for extension, doesn't mean they don't need it. Irrelevant already.

(B) Clinical trials of new drugs, which occur after the patent is granted and before the new drug can be marketed, often now take as long as 10 years to complete.
Of the 20 years granted to them, pharma companies lose out 10 years on trials. Hence, it brings to the fore the need for extension for pharma companies and supports their cause.

(C) There are several industries in which the ratio of research and development costs to revenues is higher than it is in the pharmaceutical industry.
Here is a possible trap answer. One reason why pharma companies may need extension is "low returns every year" i.e. if the returns in the pharma sector are not as high as those in the other sectors, relative to the research and development cost. But this option is opposite of that. It says that the ratio of research costs to revenues is lower in pharma sector (which means that either research cost is low or revenue is high). This does not help the extension request of pharma sector.

(D) An existing patent for a drug does not legally prevent pharmaceutical companies from bringing to market alternative drugs, provided they are sufficiently dissimilar to the patented drug.
If alternative drugs can be brought in, a patent does not help in recovering the cost anyway. Here is the problem then - how will extending the patent help in recovering the cost? If the patent is ineffective, how will extending an ineffective solution help?
This is similar to saying - there is a law against teenage drinking that fines $100 for first offence. But most teenagers are not caught because they drink the liquor available at home. We should increase the fine to $150.
When the law is not effective, how will increasing the fine help? We need to get some more stringent laws in to remedy the situation.
Hence (D) is not the answer.

(E) Much recent industrial innovation has occurred in products—for example, in the computer and electronics industries—for which patent protection is often very ineffective.
It may help explain why other industries may not care about longer patent periods but it doesn't help explain how longer patent periods will help pharma.

Answer (B)
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Re: The pharmaceutical industry argues that because new drugs will not be  [#permalink]

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New post 13 Aug 2018, 08:22
B because it provides the valid reason for the extension of the patents in pharmaceutical industry
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Re: The pharmaceutical industry argues that because new drugs will not be  [#permalink]

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New post 25 Sep 2018, 12:40
The pharmaceutical industry argues that because new drugs will not be developed unless heavy development costs can be recouped in later sales, the current 20 years of protection provided by patents should be extended in the case of newly developed drugs. However, in other industries new-product development continues despite high development costs, a fact that indicates that the extension is unnecessary.

C: extension not needed
WHY: other industries cont. with dev. of new product despite high cost
we need to find a reason that makes it okay for pharmaceuticals to ask for more time. we need to find out what makes them diff. from other industries

Which of the following, if true, most strongly supports the pharmaceutical industry’s argument against the challenge made above?

(A) No industries other than the pharmaceutical industry have asked for an extension of the 20-year limit on patent protection. - IRR

(B) Clinical trials of new drugs, which occur after the patent is granted and before the new drug can be marketed, often now take as long as 10 years to complete. - CORRECT

(C) There are several industries in which the ratio of research and development costs to revenues is higher than it is in the pharmaceutical industry. - IRR

(D) An existing patent for a drug does not legally prevent pharmaceutical companies from bringing to market alternative drugs, provided they are sufficiently dissimilar to the patented drug. - IRR

(E) Much recent industrial innovation has occurred in products—for example, in the computer and electronics industries—for which patent protection is often very ineffective. - IRR
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Re: The pharmaceutical industry argues that because new drugs will not be &nbs [#permalink] 25 Sep 2018, 12:40
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