Question 13 Dresden Pharmaceuticals has decided to go ahead and start clinical t

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Question 13 Dresden Pharmaceuticals has decided to go ahead and start clinical trials on a potential new drug. The total R&D costs are estimated to reach around $875,000,000 with clinical trials mounting to $145,000,000. The current market size is estimated to be around 3,000,000 and is expected to grow at 4 percent every year. The market share Dresden hopes to capture in the first year is 7 percent, and is projected to grow by 25 percent each year for the next 4 years. A monthly prescription is anticipated to generate revenue of $420 while incurring variable costs of $150. A discount rate of 8 percent is assumed. Calculate the projected sales for the first year Not yet answered Points out of 1 Flag question Dresden Pharmaceuticals Data Market Size Unit (monthly Rx) revenue (S)420 Unit (monthly Rr)cost (S) Discount Rate (per cent) 3,000,000 150 Project Costs R&D (S) Clinical Trials (S) 875,000,000 145,000,000 Select one O a. $ 273,000 b. $210,000 O c. $378,000,000 O d. $268,230

Explanation / Answer

Sales are expected to capture 7% Of the market size in the first year.

Hence Sales would be

= 7% * 3000000

= 210,000

Option B , 210,000

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