What are some advantages and disadvantages of bringing new drugs to the market?
The major advantage of bringing new drugs to market is that there is a great potential for making money. A firm that comes up with a new drug that sells well can make a tremendous amount of money. With that reward, however, comes risk. The risk is the major disadvantage. A firm might spend a lot of money on research and development only to find that the drug does not work. A firm might bring the drug to market, only to find that it has harmful side effects that were not detected in the testing. This can lead to massive lawsuits against the firm. Bringing new drugs to market, then, brings both risks and potential rewards.