Which of the following most logically completes the passage below?
Cevap:Biotechnology startups developing treatments for ultra-rare pediatric conditions rely almost exclusively on early-stage venture funding, which investors typically recoup when established pharmaceutical conglomerates acquire these startups prior to costly Phase III clinical trials. To incentivize innovation, a regulatory body extended patent protection for ultra-rare disease therapies from 10 to 15 years. However, early-stage venture investment in these startups subsequently declined by 35%. Industry analysts explain that the prolonged exclusivity window allows prospective corporate acquirers to postpone acquisitions until after startups independently navigate late-stage trial risks without fearing that generic competitors will enter the market prematurely. Because major firms now defer buyouts until Phase III completion, early-stage venture investors 【must bear uncompensated late-stage clinical risks and extended capital lockup periods, reducing the expected return on early investment】.
Cevap
must bear uncompensated late-stage clinical risks and extended capital lockup periods, rendering early-stage investments far less attractive
The passage sets up a paradox: extending patent protection was intended to increase innovation, but early-stage funding dropped. The explanation given is that extended patent life allows large pharma acquirers to wait longer before buying startups, forcing startups to bear Phase III trial risks on their own. The option stating that early-stage investors face prolonged capital lockup and heightened risk before acquisition logically completes the causal chain explaining why venture investment declined.
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Completing the Passage Logically