Question $2$: Write an individual reflection

Merck & Co$.,$ Inc. is a global, research$-$driven pharmaceutical company that discovers,

develops, manufactures, and markets a broad range of human and animal health products. The

following are excerpts from the financial review section of the company's annual report:

Merck & Co$.,$ Inc.

Financial Review Section $($partial$)$

In the United States, the Company has been working with private and governmental employers

to slow the increase of health care costs. Outside of the United States, in difficult environments

encumbered by government cost containment actions, the Company has worked with payers to

help them allocate scarce resources to optimize health care outcomes, limiting potentially

detrimental effects of government actions on sales growth. Several products face expiration of

product patents in the near term. The Company, along with other pharmaceutical

manufacturers, received a notice from the Government agency that it was conducting an

investigation into pricing practices

Answer each of the following questions.

a$.$ In light of the above excerpts from Merck's annual report, discuss some unique pricing issues

faced by companies that operate in the pharmaceutical industry.

b$.$ What are some reasons why the same company often sells identical drugs for dramatically

different prices in different countries? How can the same drug used for both humans and

animals cost significantly different prices?