Question

Premise: A new drug, CureMax, developed for a chronic respiratory disease, has shown a remarkably high cure rate, reducing the duration of the illness from years to just a few months. However, analysts warn investors that CureMax may not be profitable in the long run. They argue that because the drug effectively eliminates the disease in most patients, the number of repeat customers will drastically decline in the coming years. They point to earlier examples where highly effective cures significantly shrank the long-term market for the drug. Which of the following statements, if true, most strengthens the analysts’ argument? 1. CureMax has been found to cure 95% of patients within the first treatment cycle. 2. Several pharmaceutical companies prefer developing long-term therapy drugs because they provide steady annual revenue. 3. The company producing CureMax has recently increased its research expenditure by 40%.

A Only 1
B Only 2
C Only 3
D Only 1 and 2
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