Assignment 4Legal and Ethical Considerations in Marketing, Product Safety, and Intellectual PropertyYou 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 PharmaCAREs use of AD23, one of the companys top-selling diabetes drugs. Two (2) years ago, after PharmaCAREs research indicated that AD23 might also slow the progression of Alzheimers disease, John and his team of pharmacists began reformulating the drug to maximize that effect. In order to avoid the Food and Drug Administrations (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 parents headquarters. To conserve money and time, CompCARE did a quick, low-cost renovation.CompCARE benefited from PharmaCAREs 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 opportunity to realize even more profit, CompCARE began advertising AD23 directly to consumers and marketing the drug directly to hospitals, clinics, and physician offices, even though compounding pharmacies are not permitted to sell drugs in bulk for general use. To circumvent this technicality, CompCARE encouraged
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