Week 1 Discussion 1

Assume you are the chief executive officer of a large drug company. You are deciding what price to charge for a new drug that promises to be effective against lung cancer. Assume that the insurers would be willing to pay and that some uninsured members if society could afford to purchase the drug. Some uninsured people, however, would simply be unable to purchase it.

Discuss a criterion to determine the price for the drug

The amount of research and the costs involved with the research will determine the price of the drug. The costs to produce and test a drug can be very expensive since extensive and time consuming tests need to be administered. There is also a certain amount of trial and error involved to develop a drug. As CEO of a drug company that will be distributing a new drug that promises to be effective against lung cancer, I would need to know how the drug will treat lung cancer. Knowing how and when the lung cancer fighting drug would be administered will help support the effectiveness of the drug. There are treatments that can help fight the growing of cancer cells in the early stages. Chemotherapy is often times the first line of defense to treat lung cancer. If the drug can treat lung cancer without having to go through the rigors of chemotherapy, that would be a major factor in determining price. Whether or not the drug can treat cancer in the later stages, which are considered terminal stages, would also be a large factor in determining price.

Discuss whether it should be offered at a lower price to some members of society.

As CEO of this drug company, I have a responsibility to the shareholders to make a profit and be successful at being innovators in the pharmaceutical industry. It is also important to be able to provide the drug to low income families that may not be able to afford the product. It would be important for our company to be empathetic and sympathetic to individuals in regards to the current economy and the amount of...