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5 Thefollowing appeared in the business section of a newspaper. "Giventhat the number of people in our country with some form of arthritis isexpected to rise from 40 million to 60 million over the next twenty years,pharmaceutical companies that produce drugs for the treatment of arthritisshould be very profitable. Many analysts believe that in ten years BectonPharmaceuticals, which makes Xenon, the best-selling drug treatment forarthritis, will be the most profitable pharmaceutical company. But the patenton Xenon expires in three years, and other companies will then be able toproduce a cheaper version of the drug. Thus, it is more likely that in tenyears the most profitable pharmaceutical company will be PerkinsPharmaceuticals, maker of a new drug called Xylan, which clinical studies showis preferred over Xenon by seven out of ten patients suffering from the mostextreme cases of arthritis."
In this businesssection of the newspaper, the author indicates that Perkins Pharmaceuticalswill become the most profitable pharmaceutical company due to the facts ofincreasing population having arthritis and the preference of Xylan produced bythe company. This argument is based on insignificant facts and pure expectationfrom the author. Therefore, the conclusion is unconvincing and misleading.
It is unfair toassume that the increasing in population having arthritis over the next twentyyears would make companies that produce drugs for the treatment of arthritisprofitable. There are many other facts would affect companies’ profit such as industrycompetition and operating expense. As the number of people with arthritisincreases, there might be many companies that produce drugs and make theindustry more competitive. As a result of competition, the price of the drugswill decrease which would hugely impact companies’ profit.
The author believes that the expiration of the patent of Xenon wouldmake Becton Pharmaceuticalsless profitable and loose the leading position in pharmaceuticals industry. This mightnot happen due to the market seniority of Becton. Many patients would like tobe consistent with Becton’s production since it is more trustable than the newdrugs produced from other companies. Even though the price of other drugs mightbe cheaper than Becton’s, people might be willing to pay higher price due tothe unknown side effects of the new drugs. These possible outcomes would keepthe Becton at a high profit position with significant market occupancy.
At the end of the passage, the author uses a study to strength hisargument. However, the study is not statistically significant. The study onlycontains ten people who cannot represent the whole population. The outcome ofthese ten people does not mean that more customers would prefer Xylan rather thanXenon. The author believes that Perkins would become the most profitablepharmaceuticals in ten years due to their product, Xylan. There might be othercompanies enter the industry and produce same products or better ones in the future.As technology developing, new drugs might appear quickly and Xylan would not bethe best in the future. Therefore, the author’s conclusion is not trustworthy.
In sum, the author’s conclusion is of little credibility. In order to bemore convincing, he needs to provide more explicitly information such as countrywidesurvey and better understanding of the industry. |
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