Multiple choice

Biotech companies are not prime capable to acquire pharmaceutical companies.

Directions: A passage is given below which is followed by several possible inferences that can be drawn from the facts states in the passage. You have to examine each inference separately in the context of the passage and decide upon its degree of truth or falsity. 
Growth through acquisitions and alliances value for pharma and biotech manufacturers and their shareholders. However, companies and their investors may risk value destruction if they acquire rights to a drug that suddenly poses unanticipated safety related compliance violations committed by an acquired company could significantly impair the ultimate value of the translation and there potation of the acquirer. The pace of deal making between pharma and biotech companies continued to accelerate in 2006, increasing 17% to about $18 billion. Pharma companies were typically the buyers, and the premiums they paid increases substantially as competition intensified to secure access to novel drugs and biologic. The stakes increase everyday as competition pushes up prices and drives deal making to earlier development stages with greater uncertainty and less time to complete through due diligence.

  1. If the inference is 'Definitely True' i.e. it properly follows from the given facts.

  2. If the inference is 'Probably True' though not 'definitely true' in the light of facts given.

  3. If the 'Data are Inadequate' i.e. from the facts given you cannot say whether the inference is likely to be true or false.

  4. If the inference is 'Probably False' though not 'definitely false' in the light of the facts given.

  5. If the inference is 'Definitely False' i.e. it cannot possibly be drawn from the facts given or it contradicts the given facts.
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

The passage states 'Pharma companies were typically the buyers' in deals with biotech companies. It doesn't state that biotech companies are 'not prime capable' to acquire pharma companies. While pharma is described as typically being buyers, the passage doesn't make any claim about biotech companies' acquisition capabilities. The statement is an overgeneralization not supported.

Keep practicing — related questions