If country 3 has a total prescription pharmaceutical market of $1.2 billion, which of the following amounts best

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New answer on Aug 24, 2020
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Brenda asked on Aug 23, 2020

Can anyone help me please?

If country 3 has a total prescription pharmaceutical market of $1.2 billion, which of the following amounts best approximates PharmaCo's profit in country 3 today?

a. $12.6 million

b. $36.0 million

c. $37.0 million

d. $42.0 million

Answer is A

But I think it is not because the question says that Country 3 has $1.2 billion, and in the solution they are taking $1.2 billion for all countries, not only for country A. Or ca any one explain me why?

Thank you very much! Case PharmaCo Exhibit 2

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Ian
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replied on Aug 24, 2020
MBB | 100% personal interview success rate (8/8) and 95% candidate success rate | Personalized interview prep

Hi Brenda,

The answer is indeed A. 12.6 million. This is a very straightforward + easy solution. ($1.2B X market share % X profit margin %)

However, I'm very confused by your statement.

The question very clearly states "If country 3 has a total prescription pharmaceutical market of $1.2 billion", so I'm not sure where you're confused?

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Brenda on Aug 25, 2020

First of all thank you very much, I understand the solution but the statement about "If country 3 has a total prescription pharmaceutical market of $1.2 billion", I tought that first I had to calculate the size of all market (10 countries) and then make that calculation, so not directly. Thank you again!

Clara
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replied on Aug 24, 2020
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

First, could you please share the source of this?

Cheers,

Clara

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Ian gave the best answer

Ian

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