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Advanced Bio Medics (ABM) has invented a new stem-cell-based drug that will arrest even advanced forms of lung cancer. Development costs were actually quite low because the drug was an accidental discovery by scientists working on a different project. To stop the disease requires a regimen of one pill per week for 20 weeks. There is no substitute offered by competitors. ABM is thinking that it could maximize its profits by charging $10,000 per pill. Of course, many people will die because they can't afford the medicine at this price.
Questions
1. Should ABM maximize its profits?
2. Does the AMA Statement of Ethics address this issue? Go to www.marketing power.com and review the code. Then, write a brief paragraph on what the AMA Statement of Ethics contains that relates to ABM's dilemma.
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