Seva Inc is a pharmaceutical manufacturer in Montreal which is about to launch a new cancer-fighting drug,Floror.The drug works by inhibiting the growth of new cells at specific body sites.Clinical trials and careful economic analysis have convinced Seva that Floror will be a hit in the therapeutic market.Nevertheless,Seva officials learn that two other rival pharmaceutical makers have their own cancer inhibitors in the works.Seva officials worry that if these drugs hit the market at the same time as Floror they will eat into Seva profits.After some deliberation over the matter,Seva's Chief Financial Officer decides to open secret discussions with the two rivals that confirm his fears and prompt him to enter into a market-sharing arrangement in which the competitors will delay their products' entry into the market for the first five years of Floror's life in the Canadian market.In exchange,Seva will share some of its profits with its competitors,which they can use to further refine and improve their drugs.In so doing,would Seva's CFO have done anything wrong?

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The Answer of Seva Inc is a pharmaceutical manufacturer in Montreal which is about to launch a new cancer-fighting drug,Floror.The drug works by inhibiting the growth of new cells at specific body sites.Clinical trials and careful economic analysis have convinced Seva that Floror will be a hit in the therapeutic market.Nevertheless,Seva officials learn that two other rival pharmaceutical makers have their own cancer inhibitors in the works.Seva officials worry that if these drugs hit the market at the same time as Floror they will eat into Seva profits.After some deliberation over the matter,Seva's Chief Financial Officer decides to open secret discussions with the two rivals that confirm his fears and prompt him to enter into a market-sharing arrangement in which the competitors will delay their products' entry into the market for the first five years of Floror's life in the Canadian market.In exchange,Seva will share some of its profits with its competitors,which they can use to further refine and improve their drugs.In so doing,would Seva's CFO have done anything wrong?

Seva Inc Is a Pharmaceutical Manufacturer in Montreal Which Is