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The research director of PharmCo, a midsize pharmaceutical company, tells top management of an important new discovery. After years of effort, one of the company's research teams has discovered a drug that will reverse pattern baldness the leading cause of male hair loss. The potential for profit from such a drug is enormous, but the director cautions that two of the eight principal researchers on the team believe that the drug may also increase the possibility of potentially fatal cerebral aneurysms in a very tiny percentage of users.
1. Silence by a small # of researchers about side effects is ethical or a violation of a law? Yes or No and why?
2. A company can set the new drug at the highest price to maximize its profit even if it means that many men will have to remain bald. Yes or No and why?
3. However, a new drug may not be set at the highest price to maximize its profits if the drug cures rheumatoid arthritis, AIDS, or Cancer. Yes or No and why?
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