You are a new associate at the law firm of Dewey, Chetrum, and Howe. John, a former researcher at PharmaCARE, comes to your office. He has concerns about Pharmacies’ use of AD23, one of the company’s top-selling diabetes drugs. Two (2) years ago, after Pharmacies’ research indicated that AD23 might also slow the progression of Alzheimer’s disease, John and his team of pharmacists began reformulating the drug to maximize that effect. In order to avoid the Food and Drug Administration’s (FDA) scrutiny, PharmaCARE established a wholly-owned subsidiary, Compare, to operate as a compounding pharmacy to sell the new formulation to individuals on a prescription basis. Compare established itself in a suburban office park near its parent’s headquarters. To conserve money and time, Compare did a quick, low-cost renovation.
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