Growth through acquisitions and alliances has become a critical part of creating value for pharma and biotech manufacturers and their shareholders. However, companies and their investors may risk value destruction if they acquire rights to adrug that suddenly poses unanticipated safety risks for patients. Similarly, safety-related compliance violations committed by an acquired company could significantly impair the ultimate value of the transaction and the reputation of the acquire. The pace of deal-making between pharma and biotech companies continued to accelerate in 2006, increasing 17% to about $ 18 billion. Pharma companies were typically the buyers, and the premiums they paid increased substantially as competition intensified to secure access to novel drugs and biologics. The stakes increase everyday as competition pushes up prices and drives deal-making to earlier development stages with greater uncertainty and less time to complete thorough due diligence.
Biotech companies are not capable of acquiring pharmaceutical companies.

Options

A. If the inference is definitely true' i.e. it properly follows from the statement of facts given.
B. if the inference is probably true though not definitely true' in the light of the facts given.
C. If the data are inadequate, le from the facts given you cannot say whether the inference is likely to be true or false
D. If the inference is probably false", though not definitely false' in the light of the facts given.

Answer

C

Explanation

According to the passage, it may not be capability alone but also viability that has led to pharma companies being typically the buyers. But in any case, we are not able to determine the exact reason from the passage
Therefore, the given data are inadequate.