Pharmaceutical companies spend more than ever on research and development; yet the number of new drugs patented each year has dropped since 1963. At the same time, profits-at constant 1963 dollars-for the industry as a whole have been steadily increasing.
Which of the following, if true, is the single factor most likely to explain, at least in part, the three trends mentioned above for money spent, drugs patented, and profits made?
A. Government regulations concerning testing requirements for novel drugs have become steadily more stringent.
B. Research competition among pharmaceutical companies has steadily intensified as a result of a general narrowing of research targets to drugs for which there is a large market.
C. Many pharmaceutical companies have entered into collaborative projects with leading universities, while others have hired faculty members away from universities by offering very generous salaries.
D. The number of cases in which one company's researchers duplicated work done by another company's researchers has steadily grown.
E. The advertising budgets of the major pharmaceutical companies have grown at a higher rate than their profits have.
OA B
Source: Official Guide
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Pharmaceutical companies spend more than ever on research an
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Conclusion: Pharmaceutical companies spend more than ever on research and development. However, the number of new drugs patented each year dropped since 1963 as well as the profits at constant 1963 dollars have been increasing steadily.
Option A - Incorrect
Government intervention concerning testing requirement for nove; drugs is not in harmony with the argument. Hence, we are not concerned about this claim.
Option B - Correct
This explains the argument because the pharmaceutical companies spend more than ever on research and development. Nevetheless, there has been a drop in new drugs patented since 1963, while the profits has been increasing alongside.
Option C - Incorrect
We can't know from the passage if pharmaceutical companies collaborated with leading universities or hire faculty members. This claim is unfounded.
Option D - Incorrect
This is not relevant to the argument because no record of duplication was stated in the passage.
Option E - Incorrect
There is no concrete evidence to back this up. No information was given about the rate of advertising budget of pharmaceutical companies.
Option A - Incorrect
Government intervention concerning testing requirement for nove; drugs is not in harmony with the argument. Hence, we are not concerned about this claim.
Option B - Correct
This explains the argument because the pharmaceutical companies spend more than ever on research and development. Nevetheless, there has been a drop in new drugs patented since 1963, while the profits has been increasing alongside.
Option C - Incorrect
We can't know from the passage if pharmaceutical companies collaborated with leading universities or hire faculty members. This claim is unfounded.
Option D - Incorrect
This is not relevant to the argument because no record of duplication was stated in the passage.
Option E - Incorrect
There is no concrete evidence to back this up. No information was given about the rate of advertising budget of pharmaceutical companies.
