Assignment 4: Legal and Ethical Considerations in Marketing, Product Safety, and
Intellectual Property Due Week 9 and worth 300 points
You

are a new associate at the law firm of Dewey, Chetum, and Howe. John, a
former researcher at PharmaCARE, comes to your office. He has concerns
about PharmaCARE’s use of AD23, one of the company’s top-selling
diabetes drugs. Two (2) years ago, after PharmaCARE’s research indicated
that AD23 might also slow the progression of Alzheimer’s disease, John
and his team of pharmacists began reformulating the drug to maximize
that effect. In order to avoid the Food and Drug Administration’s (FDA)
scrutiny, PharmaCARE established a wholly-owned subsidiary, CompCARE, to
operate as a compounding pharmacy to sell the new formulation to
individuals on a prescription basis. CompCARE established itself in a
suburban office park near its parent’s headquarters. To conserve money
and time, CompCARE did a quick, low-cost renovation.
CompCARE
benefited from PharmaCARE’s reputation, databases, networks, and sales
and marketing expertise, and within six (6) months had the medical
community buzzing about AD23. Demand soared, particularly among
Medicare, Medicaid, and Veterans Affairs patients. Seeing the


 

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