Friday, November 26, 2010

Market

(The meeting in the drug company continues.)

"Why doesn't Company Z advocate to use Zyximab to treat nephrologist's dementia? From a pharmacological point of view, it is essentially the same as our Xyzimab, and they could just dilute the drug by 100 times and give it to the patient - I'm quite sure it works." The scientific officer asks.

"Yes, in theory they could. In reality they wouldn't - and never," the CEO said with confidence, "They are making a good profit of selling their product for Szeto's syndrome already."

"But, they can fund clinical trials to see the effect. It seems doing no harm to explore a new indication ?" The marketing manager added.

"On that, you are wrong," the CEO put up a wicked smile, "Our friends in Company Z know just too well they shouldn't step in our market - otherwise we shall fund projects to see the benefit of using our Xyzimab to treat their Szeto's syndrome - and I'm sure that will show the same benefit. At the end of the day, we set up a vicious cycle of cutting the price for both products in both diseases - not desirable for either of us."

"But ... isn't it Market Division - which is outlawed under the anti-trust regulations?" The scientific officer hesitates to point out.

"I would not comment on this question," the CEO gives the others a cold stare, "Who would know the two diseases belong to the same market ?"

Everyone around the table are forced to agree.

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