A strategy that allows brand name without breaking antitrust laws
Antitrust laws strictly prohibit unethical practices like cheating consumers for profitability, increasing product prices to attain more profitability. A strategy that allows the brand-name drug company to make profits for a time sufficient to cover their research and development costs without breaching antitrust laws is – to adopt the pay-for-delay approach (Shoven et al. 125). Pay for delay approach can be a significant approach for the generic medicine manufacturers to use their brand names without violating the regulations of Antitrust law. Moreover, it is an effective way to deal with the rigorous competition in the low-cost generic medicine.
The generic drug makers can get the opportunity to deal with fierce competition to sustain in the market as a lower-cost alternative. It is a cost-effective strategy that settles block to counter competition, to maintain the existing plan with legal aspects, and legalizing low-cost strategy (Shoven et al. 130). Don't use plagiarised sources.Get your custom essay just from $11/page
The latest study has disclosed that ordinary taxpayers use to pay more than $3.5 billion for generic medicine every year, which is more than the international standard (Shoven et al. 129). Thus, the pay-for-delay approach to maintain the low cost of the drugs can be useful for drug manufacturers. Features of pay-for-delay strategy are- managing legal aspects of low-cost initiative and legally allows the utilization of brand name without any legal restriction from antitrust law (Shoven et al. 126). A significant advantage of a pay-for-delay strategy is its legal authorization. The pay-for-delay approach is legally granted in the USA generic drug manufacturing market. Thus, the manufacturers use it as a legal defense to counter the highly competitive market. It is essential to maintain legal aspects in the competitive strategy in the generic drug market. A recent study disclosed that the utilization of the Pay-for-delay strategy had helped more than 39% of the generic drug manufacturers to increase their productivity (Shoven et al. 127).
Explain how advertising for adults differs from advertising directed at children?
Advertising for adults should always be different from advertising directed at children to maintain the ethical quality of advertising. Most of the advertising related to children has its side effects (Carr and Sherilene. 410). Side effects include healthcare problems, educational problems, and legal issues regarding childhood labor. On the contrary, advertising with the adults is more accessible as they have there are not many legal complications. Moreover, adults can utilize this as a source of income.
On the other hand, children have several vulnerabilities due to their age and psychological aspect of accepting any incident and their cognitive development (Carr and Sherilene. 411). However, advertising with adults does not have any cognitive and mental issues. Thus, advertising campaigns for children should be different from the advertising campaigns for adults for different approaches to seeing the same incident (Carr and Sherilene. 415). For example- advertising for cold drinks or fast food can provoke unhygienic food habits among children.
Federal Communications Commission has ordered the business organizations to use children for online marketing for only a few types of brands like a health drink, educational website, and educational equipment. On the other hand, adults can perform any advertisings. According to the latest study, most of the web magazines have reduced using children for their cover page advertisement in the year 2009(Carr and Sherilene. 418).
The strict prohibition of using children for advertising is an ethical initiative to reduce child labor practices. Thus, the difference between using adults and children is entirely different.