W and Z are two pharmaceutical companies. W mainly sells prescription drugs and holds a substantial number of patents on original research. Z mainly sells over-the-counter drugs, and other consumer health and beauty products. Compared to Z, company W will likely have __________.

1. Lower gross profit margin and a higher proportion of intangible assets

2. Lower gross profit margin and lower proportion of intangible assets

3. Higher gross profit margin and a higher proportion of intangible assets

4. Higher gross profit margin and lower proportion of intangible assets