hi nubu

this is a very good question.

manufacturer of DTF claims that it will reduce facial wrinkles and they will sell it as pharmaceutical

FDA says to we will approve this product unless manufacturer conduct experiments which were lengthy and costly.
but manufacturer is a small firm and could not conduct these experiments.

so FDA says better to sell your product as cosmetics which doesnt require these lengthly and costly experiments.

so this means FDA have strict rules for pharmaceuticals than cosmetics.

this is option D.

i think nows it clear.
hope it helps

I also admit I dont understand their explanation for why C is wrong, but it is not the correct answer.

The reason a company would want to sell something as a drug rather than an OTC cosmetic is because they can charge a premium for the drug. A business is most interested in generating revenue and making a profit, which is not always accomplished by selling more item. Most likely the company would actually sell more products as a cosmetic than a drug so if the intention was to sell more of the product they likely would have marketed it as a cosmetic right from the start. Either way there is ambiguity in the answer.

In D there is no question about it. The passage states that the testing for cosmetics is cheaper and less rigorous, so that would make testing as a pharmaceutical more strict.

No there is nothing on business as the firm is small one it is not possible them to invest on research and experiments if they want to approve their product as pharmaceutical hence they they should get it approved as cosmetics.

Thanks guys

Anyway, D is a better choice because it directly relates to the conclusion made from the question while C just focuses on the manufacturer's purpose of demanding pharmaceutical label for its products. Obviously, the manufacturer needs pharmaceutical label because this could ensure the product quality that helps them to boost sales or at least helps them to convince its potential customers.

have a nice day guys