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A pharmaceutical company developed a new drug which is planned to be launched in 2022. The total development costs of drug is estimated to be
A pharmaceutical company developed a new drug which is planned to be launched in 2022. The total development costs of drug is estimated to be $5 million. The drugs' share will be 10% in 2022, 15% in 2023, and 30% in 2024 given projected market volume 300,000 units in 2012; 350,000 in 2023; and 425,000 in 2024. Assume company's research and development costs will be paid off over three years. Assuming a 35% markup above costs, what should be the price per unit using cost-plus approach
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