Question
5. The Market Company A, Company B, and Company C are pharmaceutical companies which are dominant in the industry. These three companies have completed their
5. The Market
Company A, Company B, and Company C are pharmaceutical companies which are dominant in the industry. These three companies have completed their intensive R&D and launched COVID-19 vaccines to the market. The products have different levels of efficacy but have indifferent demand. The demand for these three vaccines is extremely high.
Today, news has been released from reliable sources that Company D (which is not related to Company A, Company B, and Company C) is about to launch COVID-19 anti-viral pill. The approval process is expected to complete by the last quarter of 2022 and the pill will be sold in the market in the early 2023. You are a consultant for Company A.
5.1 Analyze a demand for the vaccine of Company A. The analysis should cover the periods (i) when the approval process of the anti-viral pill is not yet completed, and (ii) when the anti-viral pill is in the market for sale.
5.2 What would you recommend to a manager of Company A under these two scenarios?
5.3 What would you recommend to a manager of Company A if a usage of anti-viral pill is not approved and the process will delay for at least five years?
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