Page 9 - CIMA SCS Workbook November 2018 - Day 1 Suggested Solutions
P. 9

SUGGESTED SOLUTIONS


                       Development of Over The Counter (OTC) drugs that do not require prescription

                  Threats


                       Reputational damage can be caused through drug tests having adverse reactions on
                         volunteers (as witnessed by Horter)


                       Drug companies can be targeted  by action groups protesting against animal testing

                       Failure to persuade regulatory bodies such as the PRA to sanction government purchase of
                         drugs on cost/benefit grounds (e.g. Werstra with the drug Denovax)


                       Millions can be spent on research projects that do not result in a marketable product

                       Drugs going off-patent open up the market to competition

                       Quoted companies suffer the possible threat of hostile takeover


                       Counterfeit drugs i.e. where ‘fake’ drugs are marketed with illegal use of trademarked
                         name

                       High costs of litigation in the event of unforeseen/undisclosed side effects (e.g. Johnson &
                         Johnson fine of US$4.7 billion in damages in July 2018 over claims that talcum powder led
                         to ovarian cancer)

                       Failure to recruit skilled scientists will lead to unsuccessful research projects

                       Poor manufacturing controls can lead to environmental damage e.g. waste product
                         entering local water systems








































                  KAPLAN PUBLISHING                                                                    49
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