Multiple choice

Directions: For this question, select the best of the answer choices given.

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?

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

  2. 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.

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

  4. 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.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The argument claims patent extension is unnecessary because other industries innovate despite high costs. To counter this, the pharmaceutical industry needs evidence showing their situation is unique. Option B provides this: clinical trials consume up to 10 years of the 20-year patent period before drugs can even be sold. This leaves minimal time to recoup costs, justifying extension.

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