Tamer A. Elnashar* and Noha T. Elnashar
In this paper, we investigate the postulation for cost reduction and competitive advantage in the pharmaceutical companies by analysing the research and development cost in those companies, where we predict this cost to be low if such postulations are applied. We use a discriminant analysis model with linear discriminant function to predict how pharmaceutical companies will prefer their cost of research and development. Our results and analysis predict that pharmaceutical companies will prefer high research and development cost for the multiple areas of new drugs and diseases rather than low cost, and the choice is more obvious in the areas for antineoplastic drugs (cancer diseases), alimentary tract and metabolism (digestive diseases), sensory organs drugs (eyes, ears, nose, or tongue diseases), dermatologics (skin diseases), and antiinfectives (infectious diseases). We recommend future research to replicate and assure our results.
